Ann: Wingina Well Gold Resource Update-DEG.AX, page-11

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De Grey lifts gold estimate

DE GREY Mining has increased the mineral resource estimate at its Wingina Well gold deposit, located near Port Hedland, with a 7% increase in reported ounces of gold.

• • Andrew Hobbs
  • 28 Oct 2016
  • 8:20
  • News

The new gold resource is 5.49 million tonnes at 1.6 grams per tonne gold for 288,000oz, of which 173,000oz is in the measured category.
The previous resource estimate was 5.1Mt at 1.6pgt for 268,000oz – with De Grey attributing the increase to the individual modelling of high grade lodes within the mineralised system.
De Grey said strongly developed oxide gold mineralisation was evident, averaging over 1200oz per vertical metre from surface to 140m below surface, and peaking at 1622oz/vm at 60-80m below surface.
The lode hosted 50% of the contained gold within only 20% of the project’s overall tonnes, with De Grey saying the smaller but higher grade material would provide greater flexibility in plant design and potential throughput rates.
The company said the most likely development scenario for the Wingina Well deposit was as an open pit with a potential underground mining operation, for processing at a carbon in leach plant.
Additional ore would be sources from neighbouring pits at the two satellite Mount Berghaus and Amanda deposits.
De Grey raised $A1.26 million in an October share placement and aims to raise another $1.25 million through a share purchase plan, while a 1-for-20 share consolidation is also planned.
The group recently acquired an option for gold exploration over part of another nearby tenement for an initial outlay of $290,000 and a parcel of 100 million options.
Shares in De Grey closed 50% higher yesterday, up A0.1c to 0.3c, giving the group a market capitalisation of $10 million.