DEG confirms gold extension at Wingina Deeps
De Grey Mining (ASX:DEG) has had a major boost – confirming step-out drilling at its main Wingina Deeps deposit hit gold, with the deposit remaining open.
It told its shareholders today that a diamond hole deliberately drilled about 150m off plunge hit 4m @ 5.57 grams per tonne gold from 416m, including 1m @ 5.46g/t Au from 416m and 1m @ 13.8g/t Au from 419m.
The hole is just one of three drilled at the project to ascertain whether or not the plunges at the project continue into bedrock below the known mineralisation at the project.
The second hole in the program has been drilled and samples are being sent off to the lab, but DEG said that this hole appeared to intersect a similar sequence than the first hole.
A third hole is also being drilled a further 60m to the east.
Better yet, samples from the first hole have undergone a brief processing test, involving a cyanide leach to see how rock from the new hole may react in a CIL plant – as is the preliminary plan for the project.
DEG reported back with gold recovery of 94.7% from a cyanide bottle roll test – which is a positive sign but remains an early stage test with more required to get a firm grasp on ultimate recoveries from a CIL plant.
As an early stage test, it is important to seek further clarification from a professional financial advisor if considering DEG as a stock for your portfolio and not base any investment decision on this information alone.
DEG executive chairman Simon Lill said the recovery rate made the company more sure of the development of the Wingina Deeps deposit via an underground mine.
“The excellent high gold recovery from the preliminary BLEG results augurs well for potential underground mining and processing evaluation studies,” he said.
About De Grey Mining (ASX:DEG)
De Grey Mining (ASX:DEG) is primarily focused on the gold potential of its Turner River project in the Pilbara region of WA – about 50km from the port town of Port Hedland.
The main deposit is the Wingina deposit – which is currently being drilled, while there are two other deposits which are being developed as potential feeder deposits for any potential gold mill based at Wingina.
Aside from the straight gold plays, DEG also has its hands on potential lithium pegmatites, and two base metals deposits – being the Discovery and Orchard Tank deposits.
Wingina itself has a total mineral resource estimate of 268,000 ounces of gold, including 156,000 in the measured category and 48,000 ounces in the indicated category – although the broader Turner River project has a total of 346,000oz.
Late last month it updated the market on the base metals potential of its Discovery and Orchid base metals deposits at Turner River, saying high grade hits from recent drilling “demands” follow-up work.
It has also moved to conduct drilling at Discovery with the aim of extending the strike length of the VMS-style deposit. The deposit hosts gold, silver, zinc, lead, and copper.
The drilling program undertaken by DEG aimed to extend the known strike length of the deposit, with previous drilling confirming high grades at depth at up to 250m.
The program effectively extended the strike to over 300m, and with potentially more to come given there are still assays due back from the lab.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.