ASX Announcement
11 October 2016
High grade lithium up to 4.22% Li2O on new "King Col" Pegmatite Trend
ASX 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 [email protected]
T +61 8 9381 4108
F +61 8 9381 6761
Highlights
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New and highly prospective 7.5km long "King Col" Pegmatite Trend located at De Grey's 100% owned Turner River, within a world class lithium-tantalum province.
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Limited reconnaissance rock chip sampling completed to date. Detailed rock chip sampling to commence immediately.
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Nine samples (out of total of 38 only) with lithium oxide (Li2O) assays ranging from 0.15% to 4.22% over ~1.5km strike length
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Prospective for Lithium-Caesium-Tantalum (LST) style pegmatite hosted mineralization
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Anomalous rock chip results include:
Tantalum pentoxide (Ta2O5) to 221.6ppm Caesium (Cs) to 1605ppm
Niobium (Nb) to 146ppm
Rubidium (Rb) to 8420ppm (0.84%) Beryllium (Be) to 23800ppm (2.38%)
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Lepidolite (lithium bearing mineral) identified within anomalous lithium zone
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No modern pegmatite exploration known along this new pegmatite trend
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Reconnaissance sampling across the Turner River tenements is ongoing
Turner River - Unlocking Shareholder Value
De Grey Mining Ltd (ASX: DEG, "De Grey", "Company") is pleased to advise that high grade lithium and additional highly anomalous results have been defined in recent surface reconnaissance rock chip samples within De Grey's 100% owned tenement E45/2533 at the Turner River Project. The Project is located only 40km from the world class Pilgangoora Lithium-Tantalum Project and 20km from the Tabba Tabba Tantalum Mine (Figure 1).
Figure 1 Turner River Project location plan
The rock chip sampling programme was undertaken along a newly discovered 7.5km long zone (Figure 2) of relatively sparsely outcropping pegmatites. The new pegmatite trend, named the King Col Pegmatite Trend, is considered to be highly prospective as the zone is:
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identified lithium bearing mineral - lepidolite
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anomalous lithium occurs over 1.5km zone
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anomalous LCT indicator elements over 7.5km strike length
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occurs within the Tabba Tabba greenstone rocks
Figure 2 New "King Col Pegmatite Trend" located in E45/2533 (green zone)
The pegmatite outcrops are generally very low lying, small to patchy outcrops with intervening areas of aeolian sand, soil and large areas of quartz scree. Mapping of the individual pegmatites is quite difficult due to the lack of continuous outcrop and surficial scree and sands. However, in many instances the individual pegmatites are interpreted to have potential widths ranging from a few metres up to 50m. The patchy outcrops of pegmatite continue over a 7.5km strike length within greenstone rocks (mafic to ultramafic rocks) of the Tabba Tabba Greenstone Belt.
Sampling at the southern end of the King Col Pegmatite Trend has highlighted a 1.5km long zone of anomalous lithium and identification of the lithium bearing mineral lepidolite (Figure 3) from a historical (unmapped) small prospecting pit. Further sampling and mineral investigations are required to determine if any other lithium bearing minerals are present along this trend.
The rock chip sampling results are considered very encouraging, considering the limited nature of this initial first pass reconnaissance sampling programme. The results include a peak of 4.22% Li2O associated with a small outcrop of the lithium bearing mineral - lepidolite, and an additional 8 samples ranging from 2.5% to 0.15% Li2O along a zone of 1.5km.
Figure 3 Photo of rock specimen containing Lepidolite (lithium bearing mineral) from the historic prospecting pit at the southern end of the CB Pegmatite Trend.
The entire 7.5km pegmatite trend, is associated with anomalous LCT pegmatite elements include Tantalum pentoxide (Ta2O5) to 221.6ppm, Caesium (Cs) to 1605ppm, Niobium (Nb) to 8420ppm (0.84%), Rubidium (Rb) to 8420ppm (0.84%), Beryllium (Be) to 23800ppm (2.38%). Table 1 provides results of selected LCT associated elements.
As a comparison, the nearby world class Pilgangoora Lithium and Tantalum deposit, owned by Pilbara Minerals Limited, and occurs in pegmatites over a 9km long strike length with a resource stated as 128.6Mt @ 1.22% Li2O and 138ppm Ta2O5 (Pilbara Minerals Limited ASX release, dated 22 Aug 2016). The Pilgangoora pegmatites also are hosted by similar greenstone rocks as seen at the King Col Pegmatite Trend.
A follow-up program of detailed rock chip and soil sampling programme is currently being planned and is expected to commence during October, with the direct aim of defining anomalous target zones for subsequent drill testing. Reconnaissance sampling across the Turner River Project tenements is ongoing.