After the gold explorer’s share De Gray Mining (WKN 633879 / ASX DEG) the paper had recently moved sideways again at a high level. The latest drillings point to a further, spectacular expansion of the gold mineralization of the new discovery Hemi – and lead to a price jump of currently over 30% down under!
As De Gray reported, a vast and promising new intrusion zone similar to that of the main ore body Brolga has been discovered on Hemi, just south of the Brolga zone, with extensive aircore drilling (160m x 80m). And this new expansion covers an intrusion area of around 1000 x 200 meters, in which many drill holes encountered severe weathering and changing sulfide mineralization. In addition, most of the analysis results are still pending and the intrusion body remains open in the swipe to the south – so there is potential for further expansion!
It is important with this new discovery that the first series of aircore holes in the new zone have identified strong, near surface gold mineralization of a similar size and type to that of the original Brolga discovery. De Gray will continue drilling for aircore further south to explore the expansion once the new program is approved.
The significant new Aircore results occur in weathered bedrock directly under an overlay of 30 to 35 meters in thickness, which is again similar to the original Brolga discovery. The highlights of these first holes were:
16 meters with 2.4 g / t gold from 40 meters,
8 meters with 2.2 g / t gold from 52 meters and
4 meters with 5.0 g / t gold from 60 meters!
Aircore drilling is currently proceeding directly to the southwest of Hemi, followed by test drilling to the north to the Scooby target area. To this end, another aircore drilling rig is due to be brought onto the project later this month to carry out regional drilling along the promising, 15-kilometer-long structural corridor, including the four previously unexplored intrusions Scooby, Antwerp, Shaggy and Alectroenas as well in different shear zones around Hemi.
The gold mineralization on Brolga, in turn, remains open to the south and within the new, large extent also to the south. The drilling near the surface appears to demarcate the western boundary of the mineralization, as recent aircore drilling shows that geology is changing to sediment here.
Significant results that extend the large zone, near-surface gold mineralization include:
55.3 meters with 1.9 g / t Au,
6.13 meters with 4.8 g / t Au,
13.35 meters with 1.3 g / t Au,
18.21 meters with 1.5 g / t Au,
6 meters with 1.9 g / t Au,
2 meters with 10 g / t Au and
16 meters with 1.4 g / t Au.
(More results in the company’s press release)
With these new results, Hemi once again demonstrates the potential for a large, world-class gold project, while at the same time showing that there are great opportunities to make further discoveries in the project area. And as Glenn Jardine explains, the latest discovery on Hemi appears to be analogous to the early stages of the Brolga discovery.
And according to Jardine, De Gray expects that significantly more value can be created for shareholders. In view of this, the drilling will be accelerated and the number of drilling rigs on the project will be increased from four to six in June! The goal is to delineate the extent of the mineralization already known on Hemi and to make new discoveries by tackling the numerous regional intrusions and shear zone targets.
And as De Gray’s new managing director goes on to say, the project also has excellent infrastructure. Everything you need is in the immediate vicinity, from high-voltage electricity to gas pipelines and major highways within 25 kilometers of the project – which is also just an hour’s drive from Port Hedland, one of the largest raw material transshipment points in Australia. De Gray will now also start with the first environmental, infrastructure and metallurgical studies on Hemi, Jardine continues.
The latest findings on Hemi / Brolga are causing a sensation down under. The De Gray share is currently 52.5 Australian cents more than 30% up – with more than 36 million shares traded! As it looks and as Glenn Jardine explained, the Mallina project of the company, to which Hemi belongs, still has considerable potential.
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