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De Grey Mining Ltd.

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Summary

Project:

Pilbara

Deposit:Withnell, Calvert, Mt Berghaus
Location:Australia
Commodities:Gold
Date:8/22/2017
Report Code:JORC
Report Type:Exploration/Drilling Update
Project Stage:Pursuing Pre-Feasibility Study
Report details:22-8-2017: De Grey Mining Ltd. announces an Exploration/Drilling Update report for its Withnell, Calvert, Mt Berghaus deposit at the Pilbara project. Drilling results incl. 12.0m @ 6.61g/t Au from 74m. Diamond drilling at Withnell, Calvert and Mt Berghaus
Resources:(Resource, Total): 4.9Mt @ 1.6g/t Au for 255,700oz Au contained at Withnell
CP/QP:[Overall Report]: Phillip Tornatora (Internal)
ABSTRACT:Diamond drilling at Withnell, Calvert and Mt Berghaus has recently been completed to obtain fresh bedrock mineralisation for metallurgical testwork and to confirm continuity of grade within the resource models. De Grey Mining Ltd (ASX: DEG, “De Grey” “Company”) is pleased to announce initial assay results of PQ diameter (85mm) diamond drill core recently completed at the Withnell, Calvert and Mt Berghaus deposits. This drilling was designed with two purposes:  To confirm and provide greater confidence in the resource model within the optimised open pit shells for due diligence purposes.  Provide metallurgical sample for detailed evaluation of the fresh bedrock mineralisation. The samples are to be used to confirm recoveries, comminution and processing flowsheet to advance the processing plant design. The PQ core has been logged and assayed on a ¼ core basis with ½ the core to be used for metallurgical purposes and the final ¼ core retained for geological use. Table 1 summarises the assay results from the ¼ core sampling. Figures 1-2 highlight the diamond drilling results in relation to previous drilling, resource block models and proposed open pit shells. Figure 3-4 show the Withnell and Calvert high grade zones in the drill core. The drilling results are particularly encouraging as all three deposits show significant higher grade gold mineralisation than the average of the overall resource at each deposit.

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