- De Grey Mining (DEG) has hit more thick and high-grade gold intersections at its Diucon and Eagle deposits at Hemi in WA
- The company believes it may be able to update its MRE once again, already boosted back in June
- Results also indicate the possibility of a larger open pit mine, and underground mine, might now be more feasible
- Mineralisation at both the Eagle and Diucon targets remains open at depth and along strike
- Shares last traded at $1.36
De Grey Mining (DEG) has teased to the market that an upcoming mineral resource estimate (MRE) boost looms after logging new high-grade gold hits at its Hemi deposit in Western Australia.
The latest results being uncovered escape DEG’s latest June MRE upgrade.
The results, the company reports, boost the probability of an underground mine being feasible – as well as further upgrades of scale at the planned Eagle and Diucon open pits.
Results unveiled by the company today reflected multiple promising indications that there’s more gold to be found underground.
New diamond drilling results at Eagle included one 27-metre-thick intersection grading at 10.6 grams per tonne (g/t) gold.
This was followed by the second-best result of 14 metres thick at 6.0g/t gold.
Finally, a 37-metre thick intersection graded at a lower grade of 3.4g/t gold.
Results from Diucon were less eye-catching than those at Eagle but still reflect the potential for a significant upgrade of scale on-site.
De Grey reported one 6.5 metre thick intersection grading at 2.9g/t gold.
This was followed by 19 metres at 2.0g/t gold, and a similar separate drillhole returned 20 metres thickness at 2.2g/t gold.
Finally, a higher-grade section was found, 8.8 metres thick and grading at 4.8g/t.
Mineralisation at both Eagle and Diucon remains open along strike and at depth.
The company’s geotechs believe the results from the latest drilling at both targets reflect an association of higher grades along inflections on major shear zones.
Quartz veins on-site at these shear zones, the company says, are often speckled with visible gold. The drilling carries on as De Grey kicked off a new campaign for the June quarter at its Hemi deposit.
“Following completion of resource definition drilling to support the DFS, the focus has shifted to exploration drilling … [finding] significant extensions to mineralisation at depth at Eagle and along strike at Diucon,” DEG Exploration Chief Phil Tornatora said.
“In addition to potential resource increases, deeper drilling at Hemi will support early conceptual studies into potential underground mining … the shallower Diucon extensions have the potential to result in an expansion of the Diucon-Eagle open pit shell outline.”
De Grey Mining shares last traded at $1.36.