Australia-based mining company De Grey Mining has identified high potential mining targets during CSAMT survey conducted at Sierra Morena project in Santa Cruz Province, Argentina.

The company is set to target these zones when it commences drilling in April 2013.

It has conducted the survey the SM6 and Vein Breccia Zone (VBZ) prospects, which confirmed that the veining and mineralization were typical of the upper levels of low sulfidation epithermal systems.

Also, the survey at the VBZ prospect returned grades of up to 15.85g per ton of gold and confirmed high grade NNW trending vein up to 0.5m wide, over a distance of 390m.

"Where this vein is hosted in more competent units at depth, excellent potential exists for the discovery of a significant zone of mineralization," the company added.

De Grey executive chairman Peter Batten remarked that it has intersected low sulfidation epithermal veins and vein breccias at SM6 during the drilling concluded in 2012.

"On review, by an industry expert it became evident that this drilling did not intersect the optimal zone for potential mineralization.

"In addition to this the importance of the acid sulfate cap was outlined and the Company was encouraged to continue searching for mineralization via mapping and geophysics to identify potential drill targets, specifically resistors associated with the acid sulfate cap at SM6 and strong resistors at VBZ," explained Batten.

In addition, during the geological mapping at SM6 veins containing visible gold were identified.

Strong resistors were detected occurring under the mapped acid sulfate cap on several lines to the north-east of existing drilling, the company added.