De Grey Mining Limited (ASX: DEG) has announced a highly encouraging update regarding the wide-spaced aircore drilling at its Mallina project in WA.
The company reported that strong gold intercepts were intersected in shallow widespaced aircore drilling at the new Hemi Prospect.
Highlights include 43m @ 3.7g/t Au from 36m including 12m @ 9.0g/t; and 25m @ 2.7g/t from 32m including 8m @ 4.5g/t.
The company reported that shallow high-grade intercepts were also intersected in aircore drilling at Antwerp. Significant hits include 6m @ 10.7g/t from 4m; and 4m @ 21.7g/t from 32m.
The company also announced further positive zones at Scooby in RC drilling which includes 14m @ 3.5g/t from 37m including 1m @ 40g/t.
The company said that all gold zones remain open and show potential for multiple large shear and intrusion hosted gold deposits.
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.
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.
Regional aircore drilling program
The company had recently completed a large regional aircore drilling program of more than 47,500m across many areas of the Mallina project. The program focused on new gold discoveries in prospective structural corridors.
The company said that the 2019 exploration program has now been completed, with approximately 9,500m of RC and diamond core drilled at Mallina over the last three weeks.
Results from Mallina, Withnell and other regional aircore drilling programs are anticipated to be reported during January 2020.
Results reported for SAST
The company has now announced the results for the aircore drilling at Scooby to Antwerp Structural Trend (SAST).
The SAST is over 15km long and is subparallel to and several kilometres south of the Mt Berghaus trend, which hosts the 181,000 ounce Mt Berghaus deposit.
The SAST comprises a network of multiple shears and inter-related Toweranna style intrusions providing an excellent fluid pathway and numerous structural traps with potential to host large gold deposits.
The company said that the wide spaced aircore drilling results occur on a nominal 640m x 160m spacing at the Hemi prospect and variably between 200-640m spaced lines at the Antwerp prospect with additional assay results pending for aircore drilling at Scooby.
DEG said that sampling has been undertaken and reported on a nominal 4m composite basis. The follow up 1m resampling is currently in progress.
Shallow, thick, high grade intercepts
The company has now reported shallow, thick, and high grade intercepts from the Hemi, Antwerp, and Scooby prospect.
Hemi prospect
The company reported strong gold mineralisation at Hemi prospect.
Hole BWAC245: Intercepts include 43m @ 3.7g/t Au from 36m, including 12 @ 9.0g/t. This is hosted in an interpreted highly sericite altered and quartz sulphide veined shear within the Mallina Basin sediments.
Hole BWAC258: Hits include 25m @ 2.7g/t from 32m including 8m @ 4.5g/t> This is in a quartz veined and altered mafic intrusion.
The two new high grade gold zones are approximately 700m apart and further drilling is required to understand whether they are related or in fact represent two new independent mineralised zones.
Antwerp prospect
The company reported that at Antwerp, located approximately 5km SW of the Hemi prospect, the new aircore drilling program has intersected shallow high grade gold mineralisation.
Hole BWAC185: Intersections include 6m @ 10.7g/t.
Hole BWAC211: hits include 4m @ 21.7g/t.
The company said that they are hosted in a mafic intrusion with dimensions of approximately 2.5km x 1km bound by two interpreted thrusts and further follow-up drilling is required to better assess the potential of this prospect.
Scooby prospect
The Scooby prospect is located approximately 2km NE of the Hemi prospect. DEG said that RC drilling has also intersected additional encouraging high grade gold mineralisation associated with the intrusion.
Hole SRC007: Hits include 14m @ 3.5g/t from 37m including 1m @ 40.1g/t.
What’s next?
The company reported that follow up aircore drilling will be undertaken to test for strike extensions to mineralisation.
DEG said that future drilling in 2020 will continue to systematically test the Scooby to Antwerp Structural Trend and other similarly prospective corridors.
De Grey said that the programs of follow up RC and diamond drilling aimed at extending resources at depth and laterally will be planned based on aircore results.
The company reported that a heritage survey has recently been completed over the parallel Berghaus Trend covering an additional ~10km of prospective structure. DEG said that first pass widespaced aircore drilling is planned for the 2020 field season.
Management comments
De Grey’s Technical Director Andy Beckwith said: “Hemi and Antwerp are exciting new greenfields discoveries under a shallow blanket of sand cover and is a direct result of our regional aircore drilling program along large scale prospective corridors.
These new discoveries validate the extensive geological assessment work that has been in progress for over 12 months and support our view that the Mallina Basin has the potential to host many large structurally controlled gold deposits.
De Grey holds the dominant land position along the Mallina Basin, and we have been steadfast in our belief, the Mallina Basin is a large and highly prospective gold province and yet is grossly under explored.
In our view, the Mallina Basin is like the Yandal Belt and the Yamarna Belt 30 and 5 years ago respectively. Both regions have since yielded multi-million ounce gold deposits after dedicated and systematic exploration”.