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With a recent $5-million investment under its belt, De Grey Mining has discovered high-grade gold zones at its Mount Berghaus deposit in the Pilbara area.
With a freshly filled wallet primed for exploration, De Grey Mining (ASX:DEG) has reported new drill results from its Mount Berghaus deposit.
Mount Berghaus is located at the company’s Pilbara gold project in Australia, and a Monday (May 28) press release from the company highlights “[s]hallow broad high-grade gold zones (>20m*m), all less than 60m depth and likely to fall within new PFS open pit shells.”
According to De Grey, results include 8 meters at 5.2 g/t from 35 meters, including 3 meters at 13.2 g/t; 15 meters at 5.3 g/t from 34 meters, including 3 meters at 19.2 g/t; and 5 meters at 9.8 g/t from 4 meters, including 1 meter at 19.2 g/t.
De Grey notes that a metallurgical diamond hole also returned “bonanza” grades of 1 meter at 242 g/t.
“The numerous high-grade intersections together with the discovery of new parallel lodes and extensions to existing lodes, augurs well for future resource increases,” said Technical Director Andy Beckwith.
“Importantly, these new lodes and extensions are all at shallow open pit depths and fall on the margins or just outside of the existing 2017 scoping study pit shells. The likelihood of increasing the open pit shells in the 2018 Pre-Feasibility Study looks encouraging,” he added.
So far, the company has completed 3,168 meters of RC drilling across 58 holes at Mount Berghaus, with more holes underway. De Grey said in Monday’s release that initial results have been “encouraging,” with many broad, high-grade intersections, some of which include high-grade “bonanza” zones.
The results from the deposit come shortly after De Grey received a $5-million investment from DGO Gold (ASX:DGO), which bought 25 million shares of the company. In an announcement about the transaction, De Grey said the financial contribution will go towards its exploration efforts at the Pilbara project.
De Grey’s current Pilbara exploration plan entails an initial 25,000 meters of infill and extensional drilling. It is geared at targeting large mineralized systems at the Mount Berghaus, Withnell, Wingina, Mallina, Toweranna and Amanda deposits. To date, 15,000 meters of RC drilling and 900 meters of diamond drilling have been completed at the project.
Pilbara has become a major destination for gold mining over the last year, following the discovery of 4-centimeter-long gold nuggets at the Purdy’s Reward project, a joint venture owned by Novo Resources (TSXV:NVO) and Artemis Resources (ASX:ARV).
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
