De Grey Mining uncovers new gold veins in Argentina 

(MENAFN - ProactiveInvestors - Australia) Gold and base metal explorer De Grey Mining (ASX: DEG) has discovered new veining at the SM6 Prospect, part of the Sierra Morena Sur Project in the Santa Cruz Province of Argentina, in recently completed ground sampling.

The results have not only confirmed the mineralisation of the SM6 veining but have located additional parallel vein sets that expand the potential at the prospect, and have located new veining outside the main area of interest.

One sample returned 0.77 parts per million gold, 41 parts per million silver and 457 parts per million arsenic.

This anomalous rock chip sample was located on a new vein set some 500 metres to the south of the main SM6 area where drilling is currently underway.

Another sample that returned 63 parts per billion gold, 2.3 parts per million silver and 150 parts per million arsenic is about 800 metres west again and represents a parallel vein system to SM6.

The current drilling program is designed to test the combined 2,000 metres of strike of the previously discovered vein sets at SM6.

Drilling is expected to be completed before Christmas with results expected from the middle of January.


Sierra Morena Sur

De Grey was granted the Sierra Morena Sur licence in late September. The licence area covers the SM6 drill target, a virgin discovery, and part of the drill target area of the Vein Breccia Zone.

The Santa Cruz Province is a very immature exploration region with a less than 20 year exploration history.

The region is host to high grade deposits which have defined around 18.1 million ounces of gold and 525 million ounces of silver since 1990.

Rock chip and float sampling at Sierra Morena has resulted in the identification of four prospects in three projects.

Sierra Morena comprises 140 square kilometres of prospective Jurassic volcanics.

At the SM6 prospect there is evidence of alteration over 6 kilometres of strike with vein extensions obscured by soil cover.

Meanwhile, at the Vein Breccia Zone, there is evidence of vein breccia over 800 metres of strike with previous rock chips returning 11.8 grams per tonne (g/t) gold and 96g/t silver.

Results confirm that drilling at the Vein Breccia Zone has intersected a low sulphidation epithermal system.

Strong potential exists for the Vein Breccia Zone to host gold-silver mineralisation at depth.