DE GREY MINING LIMITED QUARTERLY REPORT
FOR THE QUARTER ENDING 30 JUNE 2015ASX: DEG Shares on Issue
1,143,461,058
Board of DirectorsPeter Batten
Director
Simon Lill
Director
Steve Morris
Director
Company Secretary Craig Nelmes Registered OfficeLevel 1, Suite 5
55 Salvado Rd
Subiaco, WA 6008
Phone: +61 8 9381 4108
Fax: +61 8 9380 6761 www.degreymining.com.auA.B.N. 65 094 206 292
31 July 2015
HIGHLIGHTS FOR THE QUARTERTurner River Base Metals Project
Project review and geophysical data reassessment underway
Fieldwork to commence next quarter
Diamonds Project Option Agreement (Kimberley District, South Africa)
Option over a majority interest in South African Diamond Project
Technical, legal and financial DD phase extended
Great Northern Gold Project
Partner Rugby Mining Limited (TSX-V: RUG) confirmed no activity during the reporting quarter.
Puhipuhi Gold Project - NZ
100% of the project divested subsequent to quarter end to Evolution Mining
Limited (ASX:EVN) for consideration of $370,000 (received this Quarter)
Corporate
Cash on hand at end of the quarter of $242,472
Capital raising also completed during the quarter to raise $114,000 after costs
The Company has also been presented with and is continuing a review a number of resource and non-resource sector investment opportunities
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DE GREY MINING LTD QUARTERLY OPERATIONS REPORT FOR THE QUARTER ENDING 30 JUNE 2015
Turner River Base Metals Project (TRBMP)
Following the drilling completed in 2014 at Tabba Tabba and the Discovery projects De Grey has determined to complete a review of the region and to complete the surface assessment of the 23km strike horizon of the Tabba Tabba Shear, the host site for nearly all mineralization to date.
In addition, the Company has commissioned the reprocessing of raw geophysical data with the intention that the subsequent reinterpretation will more clearly define drill targets at the Tabba Tabba extension.
Potential
The Company remains of the view that the potential of TRBMP remains high.
There is an existing resource at Discovery and Orchard Tank (refer ASX announcement 23.10.14).
There are 10 identified prospects on TRBMP that have not been properly tested. All have the potential to intersect and expand on the known mineralization of the overall project.
Drilling at Tabba Tabba was designed to test a high tenor IP anomaly. These anomalies are the subject of review as the potential of the source of the anomaly remains untested.
Apart from the ten known prospects there is in excess of 15 kilometres of the TRBMP horizon that have yet to be properly evaluated. This 15 kilometres is the subject of fieldwork planned for the next quarter.
Work in Progress and Planned for September 2015 Quarter
Fieldwork will be undertaken in the September quarter to assess the 15km of the Tabba Tabba Shear not extensively explored.
An independent geophysicist has been engaged to review raw data and reprocess and reinterpret the data in combination with the drilling undertaken at the site to ascertain if a clear target can be identified or to more fully explain the geophysical anomalies present.
Subject to the outcomes of the above exploration activities, the Company would seek to undertake the following;
Target drilling at Tabba Tabba south should the review produce definitive targets.
Infill drilling at Tabba Tabba where the drilling density is currently not sufficient for a resource estimate;
A regional review of other remaining and untested prospects on the tenement deserving further work, that have the potential to enhance the TRBMP, including several gold prospects and any sites produced during the assessment of the Tabba Tabba Shear and the structural splay.
The Company sees that the TRBMP has an abundance of prospects and further work will enhance the project as a while.
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DE GREY MINING LTD QUARTERLY OPERATIONS REPORT FOR THE QUARTER ENDING 30 JUNE 2015
Gold Project - JV with Rugby Mining LtdRugby have advised that they completed a gold lag sampling programme over regional structural and geophysical targets at Turner River. The results are being processed and an update is expected in the following quarter.
South African Diamond Project
The Company has requested an extension of the due diligence phase with the vendor to an unspecified future date dependent upon it receiving all the necessary and outstanding technical, legal and financial information.
The vendor remains responsible for two key Due Diligence issues being: BEE consent to the transaction; and
Provision of the vendors most recent financial statements.
De Grey is finalizing its technical due diligence. The Company has previously highlighted its concerns with respect to chain of custody issues for the sampling previously undertaken by the vendors. Hence it has taken independent samples over the identified anomalous areas and is awaiting a definitive outcome on the technical issues associated with Due Diligence.
The due diligence phase should be completed before the end of August 2015 and a decision made on whether or not to proceed with the Option agreement.
De Grey has received notice that royalty payments covering the production for the June 2015 quarter, total $4,496.
Beyondie
The magnetite iron ore project at Beyondie is managed by joint venture partner Emergent Resources Ltd
(ASX:EMG, "Emergent"), whom have an 80% interest earned in the project.
During the quarter, Emergent completed a technical review of the Project and which comprised of a review of all project data, a review of drilling and recommendations (including detailed work proposals) targeting moving tonnes from exploration target into Measured/Indicated/Inferred Resources, the preparation of a scope of work for additional metallurgical test work on 'typical BMS' which previously returned 'saleable grades', a review of exploration and completion of regional targeting exercise, generating new targets; and the annual audit of the Inferred Resource and Exploration Target.
Progress and further updates can be viewed on the Emergent website www.emergentresources.com.au
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DE GREY MINING LTD QUARTERLY OPERATIONS REPORT FOR THE QUARTER ENDING 30 JUNE 2015
On 23 April 2015, the Company announced that it had entered into a binding sale and purchase agreement with Evolution Mining Limited (Evolution, ASX: EVS) for its 100% interest in the Puhipuhi Project (EP 51985) in New Zealand, for total consideration of A$370,000.
On 19 June 2015, the Company announced that the sale had settled.
Refer to Table 1.
Corporate
The cash on hand at end of the quarter was $242,472.
On 11 June 2005, the company completed a private placement to raise $114,346 via the issue of 228,692,212 ordinary shares to professional and sophisticated investors, to fund ongoing exploration activities, corporate expenditures and for general working capital.
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DE GREY MINING LTD QUARTERLY OPERATIONS REPORT FOR THE QUARTER ENDING 30 JUNE 2015
Table 1: Tenement Holdings and Movements
Schedule of Mining Tenements and Beneficial Interests
Held as at the end of the June 2015 Quarter
Project/Location | Country | Tenement |
Beyondie | Australia | E52/1806 |
Beyondie | Australia | E52/2215 |
Turner River | Australia | E47/891 |
Turner River | Australia | E45/2533 |
Turner River | Australia | E45/2364 |
Turner River | Australia | P45/2655 |
Turner River | Australia | E45/2995 |
Turner River | Australia | E45/3390 |
Turner River | Australia | E45/3391 |
Turner River | Australia | E45/3392 |
1 De Grey retains 100% rights to all non-iron ore related minerals under a Split Commodity Agreement.
2 De Grey retains 100% rights to all non-iron ore related minerals under a Split Commodity Agreement.
Schedule of Mining Tenements and Beneficial Interests
Acquired during the June 2015 Quarter
Percentage held/earning
20%1
20%2
100%
100%
100%
100%
100%
100%
100%
100%
Project/Location Country Tenement Granted Date
Nil
Schedule of Mining Tenements and Beneficial Interests
Disposed of during the June 2015 Quarter
Project/Location Country Tenement Withdrawal Date
Puhipuhi New Zealand 51985 11 June 2015
Competent Persons Declaration
The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Peter Batten. Mr Batten is Executive Chairman of De Grey Mining Ltd and a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Batten has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results. Mr Batten consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Previous Reported Results
There is information in this announcement relating to previous Exploration Results at the Turner River Base Metal Project. The Company confirms that it is not aware of any other new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
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