De Grey Mining (ASX:DEG) reports resource extension and infill drilling results from the Diucon deposit at Hemi has intersected ‘major’ gold.
The results in HEDD128 from regional exploration activities at the Mallina Gold Project, located about 60km south of Port Hedland in Western Australia, intersected gold mineralisation at Diucon 200m below the May 2022 Mineral Resource Estimate (MRE).
De Grey reports that it presents ‘significant’ upside to the MRE with results from HEDD128 received after the MRE assay cut-off date of 4 April 2022.
HEDD128 intersected 359.4m @ 1.2g/t Au through the width of the intrusion from 530m downhole comprising intervals calculated at a 0.3g/t Au cut-off grade of:
- 97.1m @ 2.6g/t Au from 580.92m including 19.3m @ 7.4g/t Au and 2m @ 22.5g/t Au
- 44.8m @ 1.4g/t Au from 762.46m
- 67.4m @ 1.0g/t Au from 861.74m including 16.1m @ 2.8g/t Au
The prefeasibility study (PFS) for the Mallina Gold Project is based on the May MRE and the new result in HEDD128 and other new extensional drill results at Diucon provide the opportunity to increase open pit and underground production potential post the PFS.
Diucon is located in the west of Hemi. Shallow mineralisation remains open to the west of Diucon and Eagle deposits towards anomalous gold intersections at Antwerp.
The Diucon mineralised intrusion has been intersected in drilling completed after the May 2022 MRE in HEDD128 over a true thickness of about 300m and 200m below the May 2022 MRE.
The new intersection occurs from 450m to 700m vertical depth and represents one of the best and deepest intercepts drilled at Hemi.
There is potential to extend mineralisation along strike and down plunge to the southwest.
Commenting on the results, De Grey General Manager Exploration Phil Tornatora said: “This new intercept has something for everyone; 200m depth extension to the May Resource, intrusion true width increasing to approximately 300m, open at depth and down plunge, with increased large scale open pit, large scale underground and selective high grade underground mining potential.”
Intrusion hosted mineralisation on Section 28640E occurs beneath lightly mineralised sediments that extend to a depth of some 100m.
This demonstrates the potential for the discovery of significant zones of hidden intrusion hosted mineralisation at Hemi and Greater Hemi.
New extensional and resource infill drill results calculated at cut-off grades of 0.5g/t Au with new drill results calculated at a 0.3g/t Au cut-off grade. A selection of drill results calculated at a 0.5g/t Au cut-off grade.
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