De Grey Mining Achieves High-Grade Gold Recoveries at Hemi

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported results from initial metallurgical testwork from the company’s Hemi gold deposit, located south of Port Hedland in Western Australia.

De Grey Mining undertook initial metallurgical testwork on mineralisation from the Brolga Zone, which achieved excellent gold recoveries of:

Oxide: 93 per cent based on CIL leach; and
Fresh: 96.3 per cent based on sulphide flotation, oxidation and CIL leach.

The company explained the testwork flowsheet comprised a conventional carbon in leach (CIL) circuit to treat oxide mineralisation.

“The gold recovery achieved in the initial metallurgical testwork of oxide, transition and fresh mineralisation at Brolga is very encouraging,” De Grey Mining managing director Glenn Jardine said in the company’s announcement to the Australian Securities Exchange.

“The testwork significantly de-risks the potential development of Hemi as a Tier 1 gold project in a Tier 1 jurisdiction.

“The testwork flowsheet used for Hemi can also be applied to De Grey’s other regional resources in the Mallina Basin.

“Hemi is a growing resource and contains a combination of oxide, transitional and fresh sulphide mineralisation.

“We will continue to increase our understanding of the scale and metallurgical properties of each of these domains across the deposit with ongoing testwork.

“Hemi’s excellent location, along a major transport, gas and power corridors, all within 60 kilometres of Port Hedland, is a major advantage for a Tier 1 gold resource and development project.”

The flotation circuit generated a gold-rich sulphide concentrate that was oxidised using pressure oxidation (POX) that represented approximately 10 per cent of the ore feed to the flotation circuit.

Oxidised flotation concentrate from the POX circuit was treated by CIL to recover gold.

The company indicated it would assess other methods of oxidation during ongoing test work.








De Grey Mining Hits Broad, High-Grade Extensions at Aquila

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported on progress of drilling underway at the Aquila Zone, located within the company’s Hemi gold discovery near Port Hedland in Western Australia.

De Grey Mining described Aquila as a parallel gold-sulphide zone located to the immediate north of the Brolga zone and adjacent to the new Crow zone to the north.

The company currently has RC and diamond core drilling in operation with three rigs operating between Aquila, Brolga and Crow testing for extensions of the gold mineralisation on an 80m by 80m basis.

A second RC rig is anticipated to arrive on site shortly.

The drilling at Aquila comprises step out drilling both along strike and at depth with the deeper drilling aiming to test approximately 80 to 100m below known mineralisation.

Drilling at Aquila extended 80m to the east on section 30,640E, returning results including:

41 metres at 6.8 grams per tonne gold from 181m, including 14m at 10g/t gold from 206m (Hole ended in mineralisation); and

16m at 1.6g/t gold from 144m.

Noteworthy depth extensions were also achieved, including:

69.5m at 1.3g/t gold from 80m; and

30m at 1.7g/t gold from 125m.

Shallow high-grade RC results confirmed previous aircore drilling on section 30,000E:

45m at 8.1g/t gold from 111m, including 16m at 13.2g/t gold from 114m (10gm lower cut); and

49m at 3.4g/t gold from 49m, including 19m at 5.1g/t gold from 50m.

“At Aquila, we still have not reached the limits of mineralisation,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities exchange.

“Step out drilling shows we are still in strong broad and high-grade mineralisation along the length of the deposit.

“Deeper RC and diamond drilling is planned to target approximately 100 metres below mineralisation as well as further extensions along strike.

“We announced on Friday (5/6/20) that we would be increasing the number of aircore and RC rigs on site.

“This will allow us to expand aircore drilling coverage immediately around Hemi and at the other nearby intrusions including Scooby, Shaggy and Antwerp.

“The additional RC rig will allow us to follow up the positive aircore results that are extending mineralisation and to continue defining known mineralisation.

“Wide spaced aircore drilling is currently advancing to the west of Aquila.

“Aircore holes have intersected encouraging alteration approximately 500 metres to the west of Aquila.

“The alteration appears similar to alteration at Aquila.

“Samples from these aircore holes will this week be dispatched for assaying.”





De Grey Mining Declares Brolga as Major Extension to Hemi Gold Discovery

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported on recent drilling activities undertaken at the Brolga Zone, situated within the company’s Hemi gold discovery near Port Hedland in Western Australia.

De Grey Mining claimed aircore drilling aon the Brolhga Zone has defined a major extension, measuring approx. 1000 metres long by 200 metres, wide of the Brolga intrusion.

The company said the results achieved by the drilling to have enhanced potential to expand near surface open pit resources.

Results of initial shallow aircore holes include:

16 metres at 2.4 grams per tonne gold from 40m;

8m at 2.2g/t gold from 52m; and

4m at 5g/t gold from 60m.

Of note, the company is still to receive around 90 per cent of results from the new shallow aircore at Brolga.

Additional RC and diamond achieved results at Brolga include:

55.3m at 1.9g/t gold from 184.7m;

6.13m at 4.8g/t gold from 220m;

18.21m at 1.5g/t gold from 254.79m;

2m at 10g/t gold from 161m; and

16m at 1.4g/t gold from 177m.

“Hemi continues to demonstrate potential to be a large scale, world class deposit and the project area continues to demonstrate its prospectivity for further discoveries,” De Grey Mining newly-appointed managing director Glenn Jardine said I n the company’s announcement to the Australian Securities Exchange.

“It has been a sharp learning curve at Hemi for the exploration team and this new discovery is a credit to their targeting from that learning.

“The new discovery appears to be analogous to the early stages of the initial Brolga discovery.

“We see a lot more value still to come for investors in De Grey.

“With this in mind, we are increasing our drilling effort from four rigs to six rigs during June.

“The focus of drilling will continue to be on defining the extent of known mineralisation at Hemi and new discoveries moving into the many regional intrusion and shear zone targets.

“To complement the scale and extent of near surface mineralisation at Hemi, the project is blessed with world class infrastructure.

“Everything that we need is on our doorstep including high voltage power, gas pipelines and major highways all within 25 kilometres of the project area and an hour drive from Port Hedland, a major transport and services hub.

“We are also highly encouraged to continue our early stage environmental, infrastructure and metallurgical studies.”

De Grey Mining has Hemi shaping up as a world class, large scale deposit where the company is continuing to drill in order to determine the extent of the Hemi mineralisation with the expectation that overall project resources will increase from the current 2.2 million ounces.

The company said it has at least four other look-alike intrusion targets already defined in the immediate region surrounding Hemi, three of which have known ore grade mineralisation.

A detailed airborne magnetic survey was recently completed and will be used to further improve and enhance targeting.





De Grey Mining Encounters Hemi Extensions

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) continues to grow the Hemi gold discovery at the company’s Mallina gold project in Western Australia.

The latest extension to Hemi has come at the Aquila zone by way of further wide, high-grade intersections.

Mineralisation at Aquila remains open at depth along a strike length of 850 metres.

Drilling completed by De Grey to date has demonstrated the overall scale and dimensions of the shallow gold mineralisation across the combined Aquila, Brolga and Crow gold system remains open and currently extends over 1000m in width, 850m in strike and 300m in depth.

The company is currently undertaking step-out extension drilling across all three deposits to extend the limits of mineralisation and to assess the potential for a large tonnage, low strip ratio open pit mining scenario.

Latest results from Aquila include:

139.5 metres at 0.7 grams per tonne gold from 103.89m;

113m at 0.8g/t gold from 70m;

27m at 2.7g/t gold from 152m;

13.4m at 3.5g/t gold from 266.67m;

2m at 2.5g/t gold from 168m; and

22m at 2.4g/t gold from 131m.

“The scale and dimensions of the near surface mineralisation at Hemi continues to impress,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“The size of Hemi continues to grow with every drill program and we are also confident that additional new discoveries will be made along this prospective corridor.”





De Grey Mining Confirms Crow as Large Gold System

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) has confirmed the Crow Zone at the company’s Hemi gold discovery in Western Australia as a third large gold system.

De Grey Mining completed six RC holes at Crow, five of which intersected broad scale, semi continuous gold mineralisation with narrower higher-grade intervals.

Results from the drilling include:

63 metres at 0.9 grams per tonne gold from 26m;

89m at 0.6g/t gold from 43m;

14m at 0.7g/t gold from 169m;

44m at 0.4g/t gold from 123m; and

32m at 0.4g/t gold from 61m and 8m at 0.7g/t gold from 106m (previously reported within combined 70m at 0.3g/t gold).

“The potential for another large tonnage gold deposit similar to Brolga is very encouraging,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“These are the first 6 RC holes we have drilled into Crow.

“The results show an extensive plus-400 metres wide zone of semi continuous gold mineralisation throughout the entire intrusion from Aquila through to Crow.

“The alteration and gold mineralisation at Crow is similar to that seen at Brolga.

“Looking at the cross section, if the gold mineralisation at Aquila and Crow join at depth then we have a target larger than Brolga with a potential lateral width of plus-700 metres.

“Drilling is at an early stage and we look forward to further testing this potential.”





De Grey Mining Packs in $31.2M Raising

THE BOURSE WHISPERER: De Grey Mining (ASX: DEG) showed everybody how it’s done by announcing a raising of $31.2 million.

De Grey Mining made the announcement on the back of firm commitments received for the placement of approximately 111.4 million shares at a price of 28 cents per share to sophisticated, professional and other exempt investor clients of Bell Potter Securities Limited and Argonaut Securities Pty Ltd.

The company indicated it intends using the funds raised to continue exploration activities across the Mallina gold project, with a priority of work associated with determining the scale of the recently-discovered Hemi deposit, as well as for ongoing administration and corporate costs.

De Grey currently has two diamond rigs and one RC rig in operation at Hemi.

The new funds will allow resource drilling to continue at Hemi and also the recommencement of regional drilling programs targeting the other four intrusion targets at Scooby, Antwerp, Alectroenas and Shaggy.

Since announcing the Hemi discovery on 6 February this year, the company has been flooded with offers to assist in a capital raising or direct investment,” De Grey Mining executive chairman Simon Lill said in the company’s announcement to the Australian Securities Exchange.

“We recognised the opportunity to secure further funding and to build a strong register to assist with funding requirements into the future through the introduction of global blue chip gold only and resource funds.

“We chose to proceed with the Capital Raising once we were comfortable with the level of interest and are now extremely pleased to advise that many of the world’s top funds in this sector have joined our register.

“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina gold project and to that end I would like to congratulate and thank the technical and support staff who have been part of making this possible.

“The recent Hemi discovery also highlights the outstanding exploration potential De Grey has across our tenements, with the market also now giving recognition to our existing 2.2 million ounces of resources.

“We thank the brokers, Bell Potter and Argonaut, for their efforts with this important raising, as well the ongoing support of our major shareholder, DGO Gold Limited.

“De Grey is now well funded to continue its exploration programs into the foreseeable future.”





De Grey Mining Continues Hemi Growth

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) continues to increase the company’s recent Hemi gold discovery just outside of Port Hedland in Western Australia.

De Grey Mining has defined three broad anomalous gold in bedrock anomalies, Aquila, Brolga and Crow, by way of aircore drilling at Hemi.

The company has had RC and diamond drilling underway at Brolga and Aquila since February 2020, which has confirmed considerable gold mineralisation at both deposits.

At Brolga, the gold-sulphide mineralisation has been defined over 640 metres strike length, up to 300m width and to a maximum depth of approximately 300m.

Recent gold extensions defined by diamond and RC drilling at Brolga, include:

15 metres at 2.4 grams per tonne gold from 40m, and 38m at 1.6g/t gold from 168m; and

HERC037D (Precollar only)
29m at 1.1g/t gold from 148m.

Mineralisation remains open and further drilling is continuing to establish the extent of gold mineralisation.

Aquila is a parallel gold-sulphide zone to the immediate north of the larger Brolga zone.

RC and diamond drilling has also established gold mineralisation over a strike of 800m, up to 50m width and to a maximum depth of approximately 300m.

Recent gold extensions defined by diamond and RC drilling, include:

16.2m at 3.3g/t gold from 249.3m, 8.95m at 1g/t gold from 303m, and 6.2m at 2g/t gold from 344.8m;

HERC031 (EoH)
6m at 2.4g/t gold from 80m; and

26m at 1.5g/t gold from 83m.

Gold mineralisation remains open.

The Crow Zone is a recently-define large gold zone located immediately to the north of Aquila where De Grey commenced deeper RC drill testing in April 2020.

Results for five of six holes remain pending and are expected towards the end of April.

Further RC and diamond drilling is ongoing to test the scale of each deposit with the overall aim to delineate the overall extent of each deposit prior to an initial Inferred resource estimation.

The overall scale of Hemi continues to grow, with three large gold zones in Aquila, Brolga and the new Crow defined to date,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“Our immediate plans are to continue the 80m by 80m step-out resource drilling at all three areas Brolga, Aquila and Crow with one RC and two diamond rigs active.

“We have a further four other significant intrusions in the immediate area, Scooby, Antwerp, Shaggy and Alectroenas over a strike length of 15 kilometres still to test.

“The metallurgical program has commenced with an initial emphasis on defining the oxide, transition and fresh domains and completion of a suite of comminution, leaching, sulphide flotation and oxidation test work.

“We expect this work will provide overall recoveries for each domain and define a potential plant processing flowsheet.”





De Grey Mining Defines Third Gold Zone at Hemi Discovery

THE DRILL SERGEANT: De Grey Mining has defined a third gold zone within the Hemi gold discovery at the company’s Pilbara gold project in Western Australia.

Recent drilling undertaken by De Grey Mining has defined the new Crow zone, a NE trending gold in bedrock anomaly one kilometre long and 300 metres wide, north of and parallel to the Aquila and Brolga zones within the Hemi discovery area.

The company had previously confirmed the Aquila and Brolga zones to host strong gold-sulphide mineralisation with deeper RC and diamond drilling.

Additional aircore drilling, mostly to the north of Aquila, returned further encouraging gold results at the new Crow Zone, highlighted by the maximum bedrock gold value in each aircore hole.

De Grey claims the scale of the Crow Zone as being similar to the Brolga and Aquila zones with aircore drilling extending the known extents of the northern intrusion.

To date, De Grey has completed six RC holes (HERC043-HERC048), testing from Aquila and across a portion of the Crow anomaly.

Results for HERC043 have been received, demonstrating encouraging bedrock gold mineralisation in a broad interval that finished in mineralisation.

+72 metres at 0.3 grams per tonne gold from 42m, including 4m at 0.7g/t gold from 42m, 4m at 1.2g/t gold from 70m, 4m at 0.5g/t gold from 80m, and 6m at 0.8g/t gold from 106m.

“Crow is an exciting new large and untested gold anomaly, which has the dimensions and a similar order of magnitude of aircore gold results as initially seen at Brolga,” De Grey Mining exploration manager Phil Tornatora said in the company’s announcement to the Australian Securities Exchange.

“Like Brolga, the aircore drilling has only tested the shallow weathered portion of the bedrock.

“The first RC drill section comprising six holes has been completed, encountering variable sulphide mineralisation in each hole.

“HERC043 has returned encouraging gold mineralisation.

“We expect results of the next five holes to be available towards the end of April.”





De Grey Mining Increases Mallina Gold Resources

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.”





De Grey Mining Extends Brolga Gold Mineralisation

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) released further results from drilling on the Brolga Zone within the company’s Hemi gold discovery, located near Port Hedland in Western Australia.

New RC gold intercepts encountered at Brolga include:

78 metres at 1.8 grams per tonne gold from 40m;

72m at 1.6g/t gold from 105m;

21m at 3.6g/t gold from 45m
15m at 5.5g/t gold from 75m;

33m at 1.6g/t gold from 41m;

76m at 1.5g/t gold from 42m; and

56m at 1.1g/t gold from 93m.

De Grey Mining has now defined strong and extensive gold mineralisation across four sections, demonstrating a robust and large growing volume of mineralised intrusive at Brolga.

The gold-sulphide mineralisation is well defined by the RC drilling, which the company has interpreted to be dipping moderately to the south (local grid) with a large footprint over more than 340 metres of strike, up to more than 300m lateral width, up to 200m depth that remains open along strike and down dip.

The company considers the shallower dipping mineralisation important, believing it has the potential to increase ounces per vertical metre within a future open pit and may reduce the overall strip ratio.

“Brolga is growing substantially, we continue to increase the overall footprint of the gold-sulphide mineralisation, particularly to the west and down dip where substantial thicknesses of mineralisation remain open,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“We have now confirmed the strong correlation between gold and sulphides.

“The recent four RC holes to the south and west have logged some of the strongest sulphide mineralisation noted to date.

“Drilling is planned to continue with one RC and two diamond rigs testing the limits of mineralisation at Hemi.”