De Grey Mining unearths more high-grade gold at Toweranna ‘enigma’ in Pilbara

De Grey Mining ASX DEG Toweranna gold load high grade Pilbara
De Grey Mining intersected shallow high-grade gold lodes within the Southern, Northern and Eastern zones at Toweranna.

Pilbara gold explorer De Grey Mining (ASX: DEG) has unearthed more high-grade gold from infill drilling at its Toweranna deposit, which is part of the company’s Pilbara gold project.

According to the company shallow, high-grade gold lodes were identified within the Southern, Northern and Eastern zones at the deposit, with the Southern zone giving up numerous high-grade gold.

Better results from this zone were 5m at 15.17 grams per tonne gold from 33m, comprising a high-grade 2m interval with 37.14g/t gold; 22m at 4.82g/t gold from 44m, including 3m at 23.28g/t gold; and 5m at 13g/t gold from 61m, with a 2m interval containing 30.85g/t gold.

In the Northern zone, the high-grade intervals were intersected including 1m at 38.2g/t gold and 3m at 37.82g/t gold.

Over at the Eastern zone, 3m at 7.45g/t was returned.

Additionally, visible gold was noted in a diamond drill hole, with nine diamond core tails awaiting results.

“Recent drilling has been successful on all fronts with strong gold mineralisation defined throughout the granite,” De Grey technical director Andy Beckwith said.

“We expect the diamond drilling will also add to this exciting new style of mineralisation,” he added.

Mineralisation remains open along strike and at depth, with De Grey claiming the high-grade lodes could offer up underground operation potential.

The Toweranna deposit hosts a current resource of 0.43 million tonnes grading 2.9g/t gold for 40,700 ounces.

De Grey claims the latest results combined with those from the November 2017 campaign will be used to calculate an updated resource.

The company anticipates the latest drilling data will “significantly” upgrade resources at the project and boost the open pit scoping study economics.

“Toweranna is a geological enigma of the project – hosted by a granite intrusion along the axis of a regional north-east trending fold structure, rather than by a regional shear zone like all the other gold deposits,” Mr Beckwith explained.

“This developing new style and host to gold mineralisation opens up a whole new dimension to additional targeting in the Pilbara gold project and the Pilbara region in general,” he added.

Pilbara gold project

The Pilbara gold project is only 75km from Port Hedland in Western Australia and covers 1,480 square kilometres.

At this stage, about 10% of the project’s shear zones have been subjected to drilling to 150m depths. From this exploration a resource of more than 1.2Moz of contained gold has been estimated.

De Grey has proved up more than 40 targets to follow-up that are currently untested.

The market was in favour of De Grey’s news this morning, with the company’s share price up more than 8% at A$0.20 by late morning trade.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.