What you guys who are interested in De Grey - in the long run - have to take into account - thanks to mel7691 for the link
MarketScreener Homepage > Equities > Australian Stock Exchange > De Grey Mining Limited DEG Multiple new targets increase exploration potential 007/03/2019 | 02:44pm BST
De Grey Mining Limited (ASX: DEG, 'De Grey', 'Company') is pleased to announce the results of a systematic review of the Company's extensive exploration databases that has yielded a strong pipeline of near to long-term exploration targets at the Pilbara Gold Project, located within one hours drive of Port Hedland.
The targets range from immediate resource extensions of known large gold systems and walk-up drill targets at new prospects through to early stage priority geochemical and or geological anomalies. The various components of the evaluation have been undertaken over a period of 12 months by independent geological consultants Model Earth Global Geological Services ('Model Earth') and Mr. Allan Kneeshaw ('Kneeshaw' FAusIMM, FAIG) in collaboration with the De Grey technical team.
The primary studies include: a new improved geological framework with a stronger understanding of the fundamental structural controls of the mineralised systems across the project (Kneeshaw), detailed geological and structural assessment of the Withnell Trend mineral system leading to new targets along strike and down dip (Model Earth)
The evaluation has led to a number of new initiatives, including: Application of new geophysical surveys for direct resource targeting purposes; e.g. Sub-Audio Magnetic (SAM) geophysical surveys and down hole optical tele-viewer. Leading edge low-level geochemistry research in association with CSIRO, aiming to look through the veneer of sand cover.
Improved Geological Framework
The new geological interpretation by Kneeshaw, an experienced industry geologist, has provided a strong focus to the various styles of mineralisation potential within the project, including gold, base metals (Zn-Pb-Cu-Au-Ag), Ni-Cu-PGE magmatic sulphide and lithium mineralisation within the Mallina Basin and Tabba Tabba greenstone belt, where De Grey controls a large, contiguous landholding. The evaluation has included a detailed review of public information, extensive compilation, validation and analysis of the existing De Grey geological, geophysical, geochemical and drilling databases. Results confirm and refine the numerous large known targets and importantly has highlighted the significance of previously unrecognised or unappreciated 'hidden targets' within the large historical dataset, including the new Toweranna style targets.
The new geological framework provides strong reasoning as to why the Mallina Basin is considered the highest priority geological domain for Archaean lode and granitoid hosted gold mineralisation in the Pilbara Craton. The host lithologies and mineralisation are of similar styles as that seen in the Kalgoorlie region of the Yilgarn Craton of WA, which has produced over 80M ounces of gold. The biggest difference to the well-endowed Kalgoorlie region is the fundamental lack of exploration in the Mallina Basin over the last century.
The evaluation has also provided a clear view on effective and ineffective past geochemical sampling techniques and new innovative sampling techniques to be tested going forward. A number of leading-edge initiatives have resulted from the Kneeshaw review including the low level geochemical research beneath the veneer of sand cover in association with CSIRO. Larger trial target areas are planned to commence in the coming quarter.
Mallina Basin Potential
In the Pilbara, the Mallina Basin is the largest Archaean sedimentary basin by strike extent and volume and is interpreted to be controlled by large deep seated mantle tapping structures (NW corridor) that allow primary gold rich fluids to flow into the basin. This underlying 'deep seated mantle tapping' architecture creates an excellent fluid pathway and the complex folding and shearing history provides excellent structural traps for gold mineralisation in the various shear zones, anticlinal structures and associated intrusions.
The shear zone style of gold mineralisation is well documented with defined resources including the Withnell, Wingina, Mt Berghaus and Mallina deposits occurring as generally steep sub vertical lodes within large regional scale shear zones. De Grey estimates only 10% of the 200km of highly prospective and geochemically anomalous shear zones have been tested by detailed RC and diamond drilling to date. Large extents of the shear zones have highly prospective zones of strong gold and associated pathfinder elements defined, yet have not been drill tested to date. This style of mineralisation forms the largest portion of the current known resources which are expected to grow significantly as exploration advances.
The importance of the relatively late suite of intermediate intrusions and associated structurally controlled gold mineralisation is newly recognised, with the expanding Toweranna resource providing an insight into the substantial potential of this style of mineralisation throughout the project area. The recent database review, has defined seven (7) new intrusion related gold targets, including five 'walk -up' high priority drill targets with encouraging, shallow gold intersections highlighted in the drilling database. These five targets have never been followed up since drilling and sampling occurred between 1998 to 2005. Please refer to the following section covering the Toweranna targets.
DEG Price at posting:
89.0¢ Sentiment: Buy Disclosure: Held
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