De Grey Mining Ltd (ASX:DEG) has reported a suite of strong gold intercepts from infill drilling at its Brolga deposit – part of the Hemi Gold Project in Western Australia’s Pilbara region, including 56 metres at 3.7 grams per tonne from 36 metres, 70 grams at 2.7 metres from 36 metres, and 62 metres at 2.6 grams per tonne at from 44 metres.
The focus of this drilling program was grade control, which will facilitate De Grey’s plans for detailed ore production, stockpiling, and plant feed scheduling as part of Hemi’s critical commissioning and ramp-up phase.
One achievement of the program was reduction of drill spacing from 40 metre lines and 40 metre collars to 20 metre lines with 40 metre collars.
Assays results from the drilling will be included in a mineral resource update for Hemi, which will release in November. This is expected to see the mineral resource for Hemi’s first year of gold production to be converted from an indicated to a measured status under JORC.
The results from infill drilling – and the intercepts yielded – are expected to support a definitive feasibility study for the Hemi mine plan, as well as the rapid capital payback from
the Brolga Stage 1 pit.
Year one of ore production at Brolga comprises 9.9 million tonnes at 1.65g/t gold for 525,000 ounces of contained gold.
De Grey general manager exploration Phil Tornatora said he was glad to see such solid intercepts at Brolga.
“While not surprising considering the results of previous drilling, it confirms the quality of the Brolga orebody,” he said.
“Many of these holes intersect wide, continuous zones of mineralisation directly beneath the transported cover, where ore production will commence.
“This drilling continues our strategy of building operational readiness across the business as we await final environmental approvals and a final investment decision for Hemi.”
De Grey shares have moved down since the news, and at 14:18 AEDT, they were trading at $1.44 – a fall of 0.69% since the market opened.
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