De Grey Mining – Gold deposit Withnell grows and grows!

Among other things, De Grey’s most recent drilling program intersected half a meter of mineralization at up to 56.9 grams of gold per tonne (g/t) within a further interval of 5.1 meters at 9.9 g/t gold! In addition, there was another notable interval of 3 metres in length with 17.1 g/t gold from only 91 metres depth. This included a high grade 1 metre long mineralization interval of 43.6 g/t gold from 92 metres depth.

This near-surface, high-grade gold was discovered at the western end of the deposit, which, according to De Grey, provides additional opportunities to extend the most westerly vein laterally and to depth.

De Grey has extended Withnell Lode 1 an additional 100 metres below the known resource to a depth of 350 metres with recent drill results over the entire 1.2 kilometre strike length!

Importantly, within this 1.2 kilometre strike length, Lode 1 appears to be evolving into three higher grade veins sloping to the west, as explained by De Grey’s Technical Director Andy Beckwith. Lode 1 is the dominant vein of the Withnell deposit, but there are several other parallel veins that have only been partially drilled.

Of these veins, De Grey has drilled 7 metres of 2.2 g/t gold from 85 metres in Lode 2 and 0.67 metres of 16.1 g/t gold from 476.6 metres in Lode 12. Additional drill results are pending from both Lode 1 and the parallel veins.

 

And this large gold system remains open on strike and at depth, the Company reported, meaning that De Grey has not yet reached the limits of gold mineralization.

 

Mr Beckwith stated: “The extent and grade are the two most important aspects of the Withnell deposit. Withnell is a large 1.2 km long and strongly mineralized gold system that remains open both strike and depth. The average grade of the underground resource is 4.1 g/t, which is good compared to ongoing underground mining operations in Western Australia.

 

Withnell is the largest gold resource within the overall gold project and currently has a total resource (open pit and underground) of 429,300 ounces of gold (4.65 million tonnes at 2.9 g/t gold).

De Grey has already confirmed that the pre-feasibility study on the project will evaluate the potential for conventional mining of Withnell’s underground resource. An emerging success in the search for additional resources at depth should improve this assessment and offer the potential to increase mine life overall. Accordingly, De Grey continues drilling to expand resources to Withnell but also to the Mallina deposit.

De Grey expects to receive assay results from Withnell’s pending drilling in January 2020 and will then update the resource model. At Mallina, existing backwash drilling is now being extended to depth with a core drill, with the new drilling expected to have a total length of 8,000 to 10,000 metres. Again, results are expected early next year and an update to the previous resource estimate is planned. In addition, De Grey expects to receive results shortly from drilling completed at the Toweranna deposit so that this resource model can also be updated.