De Grey Mining Limited (ASX: DEG)

DRILLING COMMENCES AT BEYONDIE ZINC TARGET

De Grey Mining Limited (ASX code: DEG) is pleased to advise that RC drilling has commenced at the Beyondie Project, located 160km south of Newman.

De Grey?s 2,600km² Beyondie Project contains the large scale Proterozoic shale-hosted zinc target at Beyondie Bluff (see Figure 1). Previous work has identified widespread base metal and silver anomalism in calcareous and dolomitic shales at the foot of the quartzite?capped bluff.  The Proterozoic rocks and geological environment are similar to those hosting major Queensland SEDEX-style zinc-lead-silver deposits such as Mount Isa, MacArthur River and Century.

Previously reported drilling by De Grey from 1km spaced holes has returned base metals mineralisation of up to 10m at 0.81% zinc, 0.13% nickel and 0.13% copper as well as 2m at 0.22g/t gold and 10m at 3g/t silver.  Mineralisation remains open down dip to the north and along strike to the east and west.  Previously reported rock chip samples grade up to 219g/t silver.

Further drilling at Beyondie Bluff had been delayed by a change in the Native Title representative body for the area. Heritage surveys were successfully completed in June and drilling commenced on 10 August.

The seven hole, 1,500m program will test the full thickness of the shale stratigraphy beneath the Beyondie Bluff quartzite for the first time. The kilometre spaced holes are designed to provide a vector towards a potential high grade body of shale-hosted mineralisation, as illustrated in Figure 2. Initial assay results are expected in October.

Managing Director Gary Brabham said ?These 1 x 2 kilometre step-out holes represent a bold test of Beyondie Bluff and the size of the potential prize makes this a must-do program for De Grey.?

Figure 1 ? Beyondie Bluff zinc-silver results and planned RC drilling.

Figure 2 ? Beyondie Bluff conceptual exploration model

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