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.