* announcement

09:20, Thursday, 20 October 2005

Sydney - Thursday - October 20: (RWE Australian Business News) -
De Grey Mining Ltd (ASX code: DEG) today announced follow-up RC drilling
had confirmed the discovery of significant gold and base metals
mineralisation at its Orchard Well prospect in the wholly-owned Turner
River Province, 60 kilometres south of Port Hedland.
These intersections were made from holes drilled beneath base
metal gossans 2.5km apart along strike.
Best results from one hole were 13 metres at 3.11 per cent zinc,
1.36 per cent lead, 0.19 per cent copper, 1.19g/t gold and 58g/t silver.
This included a high-grade intersection of 1 metre at 10 per
cent zinc, 4.40 per cent lead, 0.51 per cent copper, 1.54g/t gold and
150g/t silver.
Another hole intersected from 28 metres depth, 38 metres at
1.82% zinc, 0.94% lead, 0.04% copper, 147 ppb gold and 59g/t silver,
including a high-grade intersection of 4 metres at 8.13% zinc, 4.52%
lead, 0.11% copper, 504 ppb gold and 346g/t silver.
The holes confirmed the presence of both disseminated and
massive sulphides.
Managing director Mr Denis O'Meara said the presence of wide
zones of anomalous polymetallic disseminated and massive sulphide was
"exciting" because it might represent part of a more highly mineralised
massive sulphide system.
De Grey will immediately conduct further geophysical work and
RAB drilling to identify and rank further exploration targets at the
Orchard Well discovery.
Shares in De Grey fell 0.5c to 23c yesterday.