ASX Announcement
25 January 2017
Mt Berghaus Gold Resource Trebles Increases by 98,000oz to 141,000ozASX Code DEG
ABN 65 094 206 292
COMPANY DIRECTORS
Simon Lill
Executive Chairman
Davide Bosio
Non-executive Director
Steve Morris
Non-executive Director
Craig Nelmes
Company Secretary/CFO
CONTACT DETAILS
Principal & Registered Office Level 2, Suite 9
389 Oxford Street
Mt Hawthorn WA 6016
PO Box 281
Mt Hawthorn WA 6016 www.degreymining.com.au admin@degreymining.com.au
T +61 8 9381 4108
F +61 8 9381 6761
Highlights
Mt Berghaus Mineral Resource increases by 227% to
3.5Mt at 1.2g/t Au for 141,000ozTurner River Project Global Gold Resource climbs to
9.7Mt at 1.5g/t Au for 464,000ozThe Mt Berghaus resource increase is due to extensions to mineralisation and discovery of new mineralised zones at North Lode and West Berghaus Prospects
Over 50,000oz of the Mineral Resource is oxidised mineralisation from surface
Mineralisation defined in multiple stacked lodes associated with a major regional scale fold axis
The newly discovered zones highlight the potential for additional mineralisation within the 3km of prospective strike length between West Berghaus and Mt Berghaus on similar structures and stratigraphy
Mineralisation remains open in many areas along the 5km mineralised system - significant potential for further resource increases to be tested in 2nd Quarter 2017.
Geology Manager, Andy Beckwith commented
"The Mt Berghaus gold system is over 5km long and our detailed drilling has only tested about 1.6km of this potential.
The more we drill - the more gold we discover, so we are very confident further drilling will expand this resource."
Turner River - Unlocking Shareholder Value
Mt Berghaus- Resource UpdateDe Grey Mining Limited is pleased to announce an updated Mineral Resource for the Mt Berghaus Gold Prospect forming part of the 100% owned Turner River Project, located near Port Hedland in the Pilbara region of Western Australia.
The update was completed to include the results of RC drilling recently completed by De Grey. Modelling and estimation was completed by Payne Geological Services Pty Ltd, an external and independent mining consultancy.
The updated Mineral Resource is summarised below.
Mt Berghaus January 2017 Mineral Resource Estimate(0.5g/t Au Cut-off)
Indicated | Inferred | Total | |||||
Zone | Tonnes Mt | Au g/t | Tonnes Mt | Au g/t | Tonnes Mt | Au g/t | Au Ounces |
Mt Berghaus Central | 0.21 | 1.8 | 2.33 | 1.2 | 2.54 | 1.3 | 106,000 |
North Lode | 0.43 | 1.5 | 0.43 | 1.5 | 21,000 | ||
West Berghaus | 0.54 | 0.8 | 0.54 | 0.8 | 14,000 | ||
Total | 0.21 | 1.8 | 3.30 | 1.2 | 3.52 | 1.2 | 141,000 |
Rounding discrepancies may occur
Previous Resource - The previous resource estimate was 0.9Mt @ 1.4g/t for 43,000oz using a 0.5g/t cut-off. The new resource shows an overall 227% increase in reported ounces. This increase is due to the definition of extensions to the known mineralisation at Mt Berghaus and the discovery of new mineralised zones at North Lode and West Berghaus Prospects.
Geology - The Mt Berghaus Central, North Lode and Berghaus West deposits are controlled by the Mallina Shear Zone and occurs within deformed metasediments of Archean age. Mineralisation is developed within a NE-SW striking, sub-vertical zone with resource grade mineralisation defined to date in three separate areas. The Mt Berghaus zone has a strike extent of 1.4km while the North Lode and West Berghaus zones have strike extents of 160m and 350m respectively. All zones have been reported above a depth of 120m.
Gold mineralisation is associated with zones of quartz veining developed as multiple steep lodes within metasediments. The deposit has a typical depth of oxidation of 40m to 60m and over 50,000oz of the Mineral Resource lies within oxidised and transitional material.
Drilling - Approximately half of the resource drill holes at the Mt Berghaus project were completed by DEG in 2016. Previous drilling was largely completed by DEG in 2004 and 2005. An additional nine diamond holes were drilled by a joint venture partner in 2014.
The main Mt Berghaus zone has now been drilled at 20m hole spacings on 40m spaced cross sections. The West Berghaus and North Lode mineralisation has been drilled with a small number of holes at 20m hole spacings on 80-100m spaced cross sections. A total of 114 RC holes and 10 diamond holes define the Mineral Resource.
Sampling - Samples in mineralised zones were collected at 1m intervals utilizing rig mounted splitters. The whole sample was then pulverised and analysed for gold using fire assay technique. QAQC protocols were in place for the various drilling programs and has confirmed the quality of the sampling and assaying.
Estimation Methodology and cutoffs - The deposit was estimated using inverse distance squared ("ID2") grade interpolation of 1m composited data within wireframes prepared using 0.2g/t Au envelopes. Interpolation parameters were based on the geometry of the individual lodes making up each lode. A high grade cut of 15g/t was used in all domains. The resource has been reported at a 0.5g/t Au lower cut-off to reflect potential exploitation by open pit mining. The following table shows the Mt Berghaus resource at higher cutoff grades. Mt Berghaus Mineral Resource Estimate at various cutoff grades.Indicated | Inferred | Total | |
Cut-off Grade Au g/t | Tonnes Au Mt g/t | Tonnes Au Mt g/t | Tonnes Au Au Mt g/t Ounces |
0.5 0.75 1.0 | 0.21 1.8 0.17 2.1 0.14 2.4 | 3.3 1.2 2.3 1.4 1.6 1.7 | 3.52 1.2 141,000 2.51 1.5 120,000 1.73 1.8 99,000 |
Rounding discrepancies may occur
The block dimensions used in the model were 20m EW by 4m NS by 10m vertical with sub-cells of 5m by 1.0m by 2.5m.
Limited bulk density data is available for the deposit so assumed values were used, based on information from similar deposits. Bulk density values used in the resource estimate were 2.2t/m3 for Oxide, 2.4t/m3 for Transition and 2.6t/m3 for Primary.
Metallurgy - No metallurgical test work has been completed for the Mt Berghaus deposit. The presence of visible gold in surface quartz veins, oxidised nature of bedrock within the oxidised domain and the relatively low level of sulphide minerals in the fresh bedrock suggests that metallurgical problems are unlikely, however preliminary metallurgical assessment remains to be carried out to confirm. Metallurgical sampling of the various lodes and domains is planned as part of ongoing exploration programs. No mining dilution or other modifying factors were considered in the Mineral Resource.
Classification - A portion of the Mt Berghaus zone resource defined by the 20m by 40m spaced drilling and displaying good continuity of mineralisation was classified as Indicated Mineral Resource. The remainder of the resource was classified as Inferred Mineral Resource due to either sparse drilling or poor continuity of mineralisation.
The deposit is open down dip and along strike in many areas and excellent potential exists to identify additional Mineral Resources with further drilling.
Exploration UpsideFigure 1 shows the current resource areas which lie along a fold axis within the metasediments. A large gold-arsenic geochemical anomaly defined by soil sampling extends along the fold axis. Drilling within much of this area is limited mainly to widely spaced lines of RAB/Aircore holes. Mineralised zones identified in early De Grey drilling remain to be followed up. These include intersections of 14m @ 6.5g/t Au and 2m @ 24.6g/t Au in limited previous RC drilling along the corridor (Figure 1)
Follow up work is planned along this prospective corridor during 2nd Quarter 2017.
Figure 1 Mt Berghaus drill collar plan showing potential exploration upsideAu-As geochemical anomaly Fold Axis
RC drill collars DD drill collars
Mt Berghaus Central 106Koz North Lode 21Koz14m @ 6.5g/tAu (BGRC031)
2m @ 24.6g/tAu (BGRC003)
West Berghaus 14KozE45/3390 E45/3392
De Grey Mining Limited published this content on 25 January 2017 and is solely responsible for the information contained herein.
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