De Grey Sees Huge Capabilities At Its Pilbara Gold Project

De Grey Mining Limited (ASX:DEG) is taking a step ahead towards development of its significant Pilbara gold project, by making a checklist of key milestones over the last quarter. This project is towards 60km south of Port Hedland in Western Australia. The project spread across 200km of mineralized cut zones spread in the area of 1500km² land holding. In the month of October, De Grey has increased its total gold resources to 1.4 million ounces using an aggressive and highly successful exploration program. All deposits remain open. The company was focused to do the Open Pit Mining Pre-Feasibility Study (OPMPFS). For that purpose, the company tried to increase shallow gold resources which is due in the first quarter of 2019.The OPMPFS is targeting 1.4-million-ounce resource in order to maintain an initial 7-year mine life.Â

Study work in regard to metallurgy test work is well in progress across nearly all deposits. It is about to get complete soon. The engineering design and costings of the proposed processing plant is soon to begin. It reported an increase in the deposits in various locations. These resources include the Mt Berghaus (181,000oz), Amanda (50,800oz), Mallina (160,700oz) and Toweranna (143,900oz). Till now only 10% of the mineralized zones were drilled to a depth of 100m to 150m. De Grey further to tap the unexplored potentials plans for next resource targeting of 3 million ounces. In December quarter, the company maintained and continued to progress towards its drilling success.

In mid-October, regular drilling at Mallina generated 56m at 3.04 grams per tonne (g/t) of gold and a higher grade core of 30m at 5.29 g/t. Phil Tornatora, the manager of De Grey exploration states that amongst all the minerals deposits of the company, Mallina was the best which had provided one of the best intersections across the project area. It is a proof of the large-scale system when there is a wide zone of intense modification and sulphide development with 56m of mineralization. In the western zone and southern zone, as a result of drilling at Toweranna has confirmed more gold mineralization. As a result, follow-up drillings, individual gold-bearing projects have resulted in overall high-grade gold resource ounces. The company further expects to enhance the mining potential of the deposit of the shallow open pit so that it can improve the overall life of open pit mine as well as life and economics of the Pilbara gold project. De Grey also conducted drilling at its Withnell project in order to identify its underground potential. As a result of recent 15-hole drilling program two high-grade gold lodes below the existing Withnell open pit were discovered. The first layer and second layer delivered grades of up to 70.4 grams per tonne (g/t) and grades of up to 14.52g/t respectively. It is assumed that 5 g/t and above is high grade. This also has an economic impact which adds pit mining strategy is substantial in terms of potential for increased revenues followed by mine life and production rate.

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