De Grey Mining Limited (ASX: DEG) has announced yet another positive update from the drilling at the Hemi Prospect within its Mallina Gold Project in WA.
The company reported that the drilling is continuing to intersect extensive sulphide mineralisation at the Brolga Zone within the Hemi Discovery.
DEG said that at the Brolga Gold Zone, the RC drilling extended sulphide rich mineralisation along strike. The company said that up to 200m wide sulphide zones were defined on section 30,560E and 30,720E. The sulphide mineralisation now 200m wide by +160m strike x +150m deep and open in all directions.
De Grey reported that the initial diamond drilling core shows abundant disseminated sulphide mineralisation.
The company also reported that new gold intercepts continue to extend gold mineralisation on section 30,640E. Highlights include 13m @ 1.9g/t Au from 36m; 18m @ 2.3g/t Au from 59m; and 16m @ 2.6g/t Au from 104m.
Mallina gold project
De Grey’s Mallina Gold Project is located approx. 60km south of Port Hedland in the Mallina Province of Western Australia.
The 1.7 Moz Mallina project hosts numerous large deposits. Significant gold deposits include Withnell, Mallina, and Toweranna. Other prospects include Hemi, Antwerp, and Scooby prospect.
Withnell is the largest gold resource at Mallina, currently hosting a combined open pit and underground resource of 4.65 million tonnes at 2.9g/t for 429,300oz of gold.
Hemi discovery
Hemi is a new discovery under 30m of transported cover, with two zones of strong, broad sulphide rich alteration with high grade gold mineralisation partially defined in the Aquila and Brolga zones.
The Aquila Zone represents a 30-50m wide high grade gold zone (>5g/t) defined on Section 30,000E (local grid) to 180m below surface. The Brolga Zone is a substantially wider alteration zone, potentially up to 200m wide and is currently defined by RC drilling over 160m of strike.
Hemi prospect comprises of the initial discovery Section A, as well as Section B, Section C, and Section D.
Drilling at Hemi
The company had recently commenced RC drilling at Hemi prospect within its Mallina project. De Grey announced that new drilling assay results and further encouraging sulphide mineralisation were observed over large widths and depths at the Brolga Zone within the Hemi Discovery.
The company has now reported the geological observations that extend the extensive sulphide mineralisation on the adjoining sections 80m east and 80m west of the Brolga Discovery together with new gold assay results on section 30,640E.
Drilling at Brolga zone
The company announced that initial RC drilling has now been undertaken on sections 30,560E and 30,720E, located 80m east and 80m west of the original discovery section 30,640E (Section B).
DEG reported new RC gold assays that confirm and extend strong gold mineralisation on Section 30,640E (local grid).
Section 30,560E and 30,720E
De Grey said that the recently completed drilling now demonstrates similar sulphide rich mineralisation occurs on both sections 30,560E and 30,720E, over substantial intervals and defines extensive sulphide mineralisation over 160m of strike length.
30,560E: The company said that section 30,560E, 80m to the west, shows markedly similar style of sulphide mineralisation and over a 200m width. DEG said that the broad individual sulphide zones are interpreted to dip approximately 45-60° to the south (local grid).
30,720E: The company reported that on section 30,720E, the sulphide zones occur over a similar gross width of 200m width, with more pronounced individual zones evident. All assay results remain pending.
DEG reported that the reconnaissance aircore drilling shows the potential for lateral strike extensions remains strong along the recognized trend.
The company said that further RC drilling is currently underway on sections 30,480E and 30,800E.
Section 30,640E (Hemi Local Grid)
The company announced that new RC gold assays continue to confirm and extend strong gold mineralisation on Section 30,640E (local grid). DEG said that further RC drill assays remain pending on this section.
De Grey reported that highly encouraging gold assays have now been received for the precollar of HEDD001, providing confirmation of strong gold mineralisation along section.
New significant drilling results from the RC precollar of HEDD001 include 13m @ 1.9g/t Au from 36m in HEDD001 including 3m @ 4.5g/t Au; 18m @ 2.3g/t Au from 59m in HEDD001 including 2m @ 6.9g/t Au; and 16m @ 2.6g/t Au from 104m in HEDD001 including 3m @ 6.7g/t Au.
The company said that diamond core drilling extending this hole is well underway targeting extension of the previously reported broad high grade gold mineralisation below holes HERC001 and HERC002.
Next steps
DEG reported that follow up aircore drilling will be undertaken to test for strike extensions to mineralisation. The company said that the programs of follow up RC and diamond drilling aimed at extending resources at depth and laterally are underway and/or will commence shortly.
Management comments
De Grey’s Technical Director, Andy Beckwith said: “Step out drilling has confirmed immediate strike extensions of the Brolga Zone, providing encouraging indications for substantial potential along strike. The widths, grades and consistency of mineralisation intersected to date are very pleasing.
Our geological model is evolving rapidly, and our confidence continues to grow that the strong sulphide rich mineralisation directly relates to gold.
We have a large volume of assays in the lab and are continuing drilling with three rigs. We expect frequent news flow over the coming weeks as we progress drilling on this exciting new discovery.”