De Grey Mining Limited (ASX: DEG) is ready to benefit from the gold prices recovery, as its Pilbara gold project metallurgical test-work came promising. As per the company’s announcement, the Pilbara detailed test work has been on-going since the release of the August 2017 Scoping study in Pilbara Gold Project (PGP) located in the Pilbara Craton of Western Australia. The Metallurgical test work was carried out by ALS Metallurgy Services within the supervision of GR Engineering Services Limited. The Metallurgical test work delivered a breakthrough result with +90% recovery for “pyrite dominated sulphide” mineralization at Withnell, and a +94% recovery from an oxide material.
Oxide samples: The oxide sample was taken from Mt Berghaus, Camel, Roe and Dromedary provinces of the Pilbara site. The test work from the sample taken from these locations delivered a positive result for each of oxide taken with an average gold recovery of 94%. All the samples taken showed the rapid extraction rate with leach residence times of 6-24 hours. The coarse grinding size ranging between 106-150?m is expected to provide cost savings due to reduced power requirements and lower grinding media consumption.
As per the company’s announcement, the Withnell samples were picked on priority to focus on the pyrite predominant sulphide mineralization assessment since it is at present the biggest sulphide store at the venture. The other pyrite overwhelming sulphide-rich stores incorporate the Calvert, Roe, Dromedary and Calvert, all arranged along the Withnell Trend. Mallina is relied upon to be sulphide-rich mineralisation, and this store is as of now being assessed with new drill centre as of late submitted to ALS Metallurgy.
Above all, the Withnell results have demonstrated that long gold recovery can likewise be kept up from the new pyrite sulphide overwhelming mineralization at a coarser granulate size. Recently proposed fine grinding has been eliminated for a coarser sulphide buoyancy with a resultant little mass force (5-9%) into sulphide concentrate followed by oxidation and standard CIL leaching to separate the contained gold. The preferred oxidation process is pressure oxidation (POX). Essentially, the POX segment is relied upon to be fundamentally smaller with a yearly capacity of 50kt-100kt relying upon conclusive throughput volumes because of the robust volume decrease into the last sulphide concentrate.
By and large, the buoyancy, POX and cyanide leach test work gave a peak recovery of 95.9% from the concentrate, so when supplemented with gravity and sulphide buoyancy recovery gives a general normal gold recovery of +90% of the contained gold. The new tail is likewise proposed to be processed through the standard CIL tanks to guarantee that the most elevated retrieval of gold is extracted.
Extra assessment of the Withnell Deeps underground mining potential is as of now being progressed with a rebuilding of the assets beneath the open pit, and this will be trailed by mine plan and costing. Diamond drilling recommenced in mid-January and this +4000m boring system is intended to proceed through H1 CY2019 to build assets at Withnell.
The shares of De Grey Mining are trading at AU$ 0.110 (as at 3:26 pm AEST, 13 February 2019) with an average volume of 252K. The stock has provided a negative return of 40.54% over last six months and negative YTD return of 8.33%.
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