THE DRILL SERGEANT: De Grey Mining (ASX: DEG) announced a substantial increase to the Mineral Resources at the company’s Mallina project in Western Ausralia.
De Grey Mining reported a 29 per cent increase in overall Mineral Resources at the Mallina project – for drilling undertaken up to 31 December 2019 – compared to the July 2019 Total Gold Mineral Resource (JORC 2012).
The total Mineral Resource has come in at 37.44 million tonnes at 1.8 grams per tonne golf for 2.2 million ounces of gold.
This breaks down as Measured and Indicated (49%) 18.95 million tonnes at 1.7g/t gold for 1.1 million ounces of gold; and Inferred (51%) 18.49 million tonnes at 1.9g/t gold for 1.1 million ounces of gold.
The resource upgrade includes updated resource models for Withnell open pit, Withnell Underground, Toweranna open pit depth extensions and Toweranna underground, together with shallow extensions to the Mallina resource.
Of note is that the updated Resource does not include any drilling results from the company’s recent Hemi discovery.
“We are very pleased to have achieved 2.2 million ounces based on all drilling to the end of 2019,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.
“Importantly, we have maintained the high average grade of 1.8 gram per tonne, all deposits commence from surface making them readily amenable to open pit mining and all remain open.
“Our new Hemi discovery is shaping up as a game changer and is not included in this resource statement.
“The thickness of mineralisation at Hemi is an order of magnitude larger than our existing deposits which provides an exciting opportunity to significantly grow our resources.
“As we have repeatedly stated, our next corporate goal is to achieve plus-three million ounces and we strongly believe this will be eclipsed by the end 2020.
“Substantial increases in the project economics are anticipated with the inclusion of the Hemi deposit.
“Accordingly, the economic studies will be updated once the scale and resources are defined at Hemi.
“Ongoing feasibility activities including detailed metallurgical test work and long lead items such as environmental, infrastructure and water studies will continue during the Hemi resource drilling.
“At Hemi, drilling is continuing with two diamond and one RC rig into the foreseeable future.
“The next Hemi results are scheduled for early next week.”