De Grey Mining Limited (ASX:DEG) is planning further exploration this year at the Farno McMahon Joint Venture in Western Australia’s Pilbara region after receiving encouraging gold results from reconnaissance drilling.
Drilling has defined anomalous gold zones at all three prospects - White Quartz Hill, Clarke and Gillies.
De Grey considers these results encouraging because none of these prospects have been drilled previously.
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Farno JV is within 20 kilometres south of De Grey’s Withnell gold deposit, which hosts the largest resource within the company’s wider Pilbara Gold Project.
Heading towards initial 30% equity
De Grey is earning up to 75% in the JV by funding exploration and expects to pass the initial 30% equity amount during its 2019 work programs.
Novo Resources Corp (CVE:NVO) recently acquired the holding company, Farno McMahon Pty Ltd, from whom De Grey is earning its JV interest.
The Farno JV covers a large tenement area with strong northeast trending structures and many large geochemical gold anomalies defined by previous exploration.
Limited earlier drilling defined bedrock gold mineralisation, however, most of the anomalies remain untested.
Heritage survey paves way
Before carrying out any ground disturbing drilling, De Grey engaged with the local aboriginal community responsible for the area to undertake a large heritage clearance program.
This survey was completed in September 2018 and paved the way for more substantial drilling programs to be undertaken during late 2018 and ongoing planned programs during 2019.
The drilling includes initial reverse circulation and RAB/aircore drilling programs.
Programs were limited in scope due to rig availability and follow-up work in 2019 is being planned.
De Grey's Pilbara Gold Project.
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At White Quartz Hill a zone of fine quartz veining was intersected with anomalous gold west of the targeted larger quartz vein.
Best results: 11 metres at 0.29 g/t, including 1-metre at 0.93 g/t; 5 metres at 0.53 g/t, including 1-metre at 1.04 g/t; and 10 metres at 0.23 g/t, including 1-metre at 0.74 g/t. These are all from surface.
Clarke prospect quartz veining
A zone of quartz veining up to 10 metres wide was intersected at Clarke prospect with sericite and lesser sulphide alteration.
Results:
- 3 metres at 0.44 g/t from 32 metres, including 1-metre at 0.83 g/t;
- 13 metres at 0.27 g/t from 22 metres, including 1-metre at 1.72 g/t;
- 1 metre at 1.13 g/t from 39 metres; and
- 2 metres at 0.61 g/t from 38 metres, including 1-metre at 1.04 g/t.
At Gillies anomalous gold zones were intersected in all three lines of reconnaissance geochemical drilling with results of 11 metres at 0.28 g/t from 1-metre, including 1-metre at 0.89 g/t; and 1-metre at 1.19 g/t from 16 metres.