De Grey Mining Limited (ASX: DEG) announced on 20th March 2019 that the company received significant results from the new Reverse Circulation (RC) and Diamond Drilling at its Withnell Gold Deposit, which is intramural to the Pilbara Gold Project. As per the company, the Withnell deposit accounts for 6.37Mt @ 1.8g/t of gold for 377,300 ounces of gold, and it is currently the largest deposit within the Pilbara project.
The Withnell deposit is the only deposit along a next 6km trend with drilling below 100m depth and the gold mineralisation in the region is hosted by 60km long, east-west trending regional scale high prospective Mallina Shear Zone.
The company has started a 2.0Mtpa Pre-Feasibility Study (PFS) and expects that the considerable potential of Withnell, Toweranna and Wingina deposit is likely to impact the PFS positively.
The company’s drilling programme of about +10,000m RC and diamond drilling continued to target the high-grade lodes beneath the proposed Withnell Open pit, and the exploration identified gold mineralisation as multiple vertical lodes associated with pyrite veining and alteration.
De Grey conducted drilling on Withnell previously and continued the same with 19 RC holes and pre-collars (3415m) and nine diamond tails (3576m) drilling to further extend the resource of the prospectus. As per the company, the drilling continues to intersect high-grade lodes, and the drilling was aimed at the shallow portion of lodes 1,2 and four towards the western end and deeper positions in the eastern area.
De Grey received the results of these drilling and announced the results for RC and initial 3½ diamond holes which were as;
The drill hole identified as INRC1364B and the lode identified as WD01 intercepted in 5m @ 7.8g/t of gold from 43m including 2m @ 14.95g/t of gold from 43m.
The drill hole identified as INRC1364B and the lode identified as WD01 intercepted in 2m @ 11.14g/t of gold from 61m including 1m @ 20.6g/t of gold from 61m.
The drill hole identified as NDD125C and the lode identified as WD01 intercepted in 5.47m @ 4.57g/t of gold from 293m.
The drill hole identified as NDD137 and the lode identified as WD02 intercepted in 16m @ 4.21g/t of gold from 94m 67.4 including 1m @ 29.3g/t of gold from 105m.
The drill hole identified as NRC102 and the lode identified as WD04 intercepted in 8m @ 3.62g/t of gold from 100m.
The drill hole identified as NRC104 and the lode identified as WD04 intercepted in 4m @ 16.4g/t of gold from 240m.
The drill hole identified as NRC112 and the lode identified as WD01 intercepted in 8m @ 20.11g/t of gold from 168m including 4m @ 38.5g/t Au from 168m
The drill hole identified as NRC114 and the lode identified as WD01 intercepted in 4m @ 5.93g/t of gold from 188m.
De Grey aims to explore 2.6 million tonnes to 3.5 million tonnes from the Withnell deposit, with a grade in the range of 4.0g/t to 6.5g/t to produce 330,000 ounces to 720,000 ounces and the results from the drilling activities which was conducted on the deposit is expected to support the aim of the company. The further drilling results are still pending from the company.
During the time of writing this report, the shares of the company are trading at A$0.097 (as on 20th March 2019, 03:55 PM), up by 8.99% as compared to its previous close.
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