De Grey Mining Limited has reported the latest results from its resource infill drilling activities at the Toweranna regional deposit within the Mallina Gold Project.
According to De Grey, diamond drilling activities designed to improve resource definition have provided outstanding results that confirm the current mineralisation model and indicate a likely increase in resource ounces at the deposit.
The company added that initial results provided 97 per cent gold recovery, with a mass rejection of 29 per cent, resulting in an average upgrade ratio of 1.37.
The nature of mineralisation at Toweranna has shown amenability to ore sorting, in addition to test works indicating the potential to increase the grade while reducing the tonnage of run-of-mine ore.
Test work completed to date indicated the potential for further optimisation, with projected benefits that include reduced haulage and processing costs, and an increased production rate through the presentation of a higher-grade feed.
As part of the Definitive Feasibility Study (DFS) of the Mallina Gold Project, objectives at Toweranna focussed on delivering a resource upgrade, including improvements to the company’s geotechnical modelling and metallurgical characterisation.
Following the study, the company will conduct regional work to discover new mineralisation at Toweranna and the surrounding districts.
It will also continue metallurgical test work of mineralisation from Toweranna to optimise the process routes, operating costs, production timetables and resource to reserve conversion.
Follow-up drilling will target interpreted structures extending from an intercept towards a smaller intrusion to the northeast, in addition to other intrusions and other structural targets in the area.
De Grey Exploration General Manager Phil Tornatora said the new results at Toweranna demonstrate the high-grade nature of mineralisation within the overall intrusion.
“New drilling results and technical studies will be incorporated in an updated resource estimate and contribute towards development of a maiden reserve at Toweranna for the DFS currently in progress and scheduled for completion mid-2023,” Tornatora added.
