Ann: Discovery confirms high grade Au-Ag-Cu-Pb-Zn from 1M Samples-DEG.AX, page-3

ASX Announcement
30 August 2016
DISCOVERY confirms high grade
Au-Ag-Cu-Pb-Zn results from 1m samples
Highlights
 Strong shallow high grade Zn dominant lodes of VMS style
Au-Ag-Cu-Pb-Zn mineralisation and remain open.
 Significant high value Au dominant precious metal (Au-Ag)
lodes defined partially overlapping the Zn lodes.
 Resource modelling and preliminary metallurgical testwork
has commenced.
 Assessment of other gold and silver rich VMS style targets
that occur along strike from Discovery is currently underway.
 Wingina drilling update due shortly
De Grey Executive Chairman Simon Lill said:
“Shallow high grade Au-Ag zones overlapping broad Zn rich VMS style
mineralisation is an excellent outcome! We will now update the
resource, determine gold and silver recoveries for this ore.

Discovery
De Grey Mining Ltd (ASX: DEG, “De Grey”, “Company”) is pleased to advise that the 1m
sample results for Discovery (Au-Ag-Zn-Pb) deposit have now been received and finalised.
The Discovery VMS deposit is located along the Tabba Tabba greenstone belt in the eastern
portion of the Turner River Project (Fig 1), approximately 25km east of the Wingina Gold
Deposit. Other encouraging VMS targets occur along the greenstone belt including Orchard
Tank with an inferred resource estimate of 1.7Mt @ 0.5g/t Au, 78.6g/t Ag, 0.99% Pb, 2.38%
Zn (JORC 2012), Tabba Tabba, Hakea and Cassia prospects.
At the Discovery deposit, previous drilling had defined encouraging Au-Ag-Cu-Pb-Zn VMS
style mineralisation to 250m depth with a inferred resource estimate of 1.2Mt @ 0.8g/t Au,
87.0g/t Ag, 0.94% Pb, 2.34% Zn (JORC 2012).
An earlier review of the existing drilling data highlighted significant high grade gold and silver
mineralisation occurring within the deposit that was not well represented in the current
resource model. The strong zones of gold and silver mineralisation are evident from surface
to the full depth of drilling (250m depth), however the Au-Ag zones do not always lie directly
within the Zn-Pb zones. The result of this difference leads to a dilution of the dominant gold,
silver and zinc grades within the overall existing resource.
In line with the Company’s strategy of defining additional shallow gold resources to support
development of the flagship Wingina Gold Deposit (268,000oz), a systematic RC drilling
program, on 40m spaced sections, was undertaken over a 300m strike length of the deposit
testing to approximately 80m vertical depth. The drilling aimed to provide sufficient drilling
density to upgrade the near surface resource to a minimum of “indicated category” and better
define the potential open pittable and high value Au-Ag and Pb-Zn lodes. A total of 24 holes
were completed for an advance of 1646m.
The drilling programme has been successful in defining both high grade Au dominant and high
grade Zn dominant lodes over the full strike length tested. Importantly the mineralisation
remains open both along strike and at depth. In detail, each individual element (Au, Ag, Cu,
Pb, Zn) mostly overlap each other but not necessarily over the entire mineralised interval. This
variance is interpreted to reflect differences in the primary mineralisation and also subtle
variance due to the remobilisation in the supergene weathering environment. The following
Tables 1 and 2 list the Zn and Au dominant intercepts based on specific cutoff limits for both
individual Zn and Au assays respectively.
Work Programme
Going forward, the proposed work programmes to be undertaken include:
 Wireframing of the individual elements Au-Ag-Cu-Pb-Zn, geology and weathering
profile.
 Resource modelling.
 Preliminary cyanide leach testwork on the oxide, transition and fresh material of the
deposit to determine potential gold and silver recoveries
 On-going assessment of other shallow gold and silver resource targets along strike
eg corridor between Tabba Tabba, Orchard Tank to the Hakea and Cassia prospects