De Grey Mining Ltd. announced an updated resource estimate for its Indee gold project in Western Australia, which hosts measured, indicated and inferred resources totaling 9.15 million tonnes at 1.8 g/t of gold for 538,400 ounces of gold.
The company noted April 3 that 57% of the Indee resources are in the measured and indicated categories, with 5.55 million tonnes at 1.7 g/t of gold for 308,500 ounces, while 24% of resources comprise oxide material, with 2.36 million tonnes at 1.7 g/t of gold for 131,700 ounces.
De Grey holds an option to acquire the Indee project by paying A$15 million by July 24, 2018.
Following the update, resources at the company's Pilbara property, which comprises the Indee and Turner River projects, total 18.84 million tonnes at 1.7 g/t of gold for slightly more than 1 million ounces of gold.
De Grey has initiated a scoping study to evaluate the potential of a stand-alone open-pit mining operation combining the two projects, with results expected by late May.
The company is also planning a drill program focused on extending resources and drill testing new targets, scheduled to start in early May.