De Grey discovered polymetallic volcanogenic massive sulphide-style (VMS) minera lisation within the Tabba Tabba Greenstone Belt in this eastern portion of the Turner River Project River in October 2005. The discovery was the first of its kind in the Central Pilbara.

High grade intersections of zinc-lead-silver-gold-copper mineralisation have been returned from six prospects over a 20km strike length to date. The high-grade polymetallic nature of the mineralisation is illustrated by the following intersections:

Discovery Prospect: 17m at 4.64% Zn, 124g/t Ag, 1.84% Pb, 0.48g/t Au and 0.17% Cu in hole from 165m in hole WARC024

Orchard Tank Prospect: 4.9m at 12.7% Zn, 331g/t Ag, 7.31% Pb, 2.54g/t Au and 0.35% Cu from 514.4m in hole WADH012

The steeply dipping, zinc-silver rich mineralisation is hosted within foliated, sericite-altered felsic schist that was originally felsic volcanic units. The mineralisation features significant gold credits with drill intercepts commonly grading about 1.5g/t gold.

De Grey entered into an agreement with HJH Nominees Pty Ltd (HJH) in August 2009 whereby HJH may earn 75% interest in the Turner River Base Metal Project by sole funding exploration expenditure of $2 million over 4 years and must fund a minimum commitment of $700,000 over the first 2 years prior to withdrawal. Upon HJH earning its interest, a joint venture will be formed and De Grey's 25% interest will be free carried to a decision to mine. A similar agreement is in place over the Turner River Gold Project to the west (see Figure below).

De Grey's Turner River Projects

The farm-out agreement provides risk capital at an attractive cost and funding sufficient to maintain meaningful exploration momentum at the Turner River Base Metal Project.

The figure below shows RC and Diamond drilling results over a 6km strike length from Orchard Tank to Hakea in comparison with 'Golden Grove' a typical VMS deposit.

Note: Click on the figure below to view a larger PDF version.

Orchard Well RC and Diamond drilling results in comparison with a typical VMS Deposit

VMS exploration at the Turner Base Metal Project is at various stages, from advanced (Orchard Tank) to the more sparsely tested eastern portion of the 30km long greenstone belt. Mineralisation at all identified prospects remains open down dip. Further drilling has the potential to extend the known mineralisation and discover additional blind mineralised positions, as is typical with this style of mineralisation.