De Grey completes landmark acquisition of Indee Gold
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Special Report: De Grey Mining now has 100 per cent control of one of the best underexplored new gold provinces in Australia.
The company (ASX:DEG) has completed the acquisition of Indee Gold and is well on its way to a bigger resource with three drill rigs in full swing in the Pilbara.
“Today is a major milestone for De Grey and an extremely pleasing conclusion to a process that we commenced in February 2017 where, with a market capitalisation of ~$3.5m, we reached agreement with our Chinese partners and friends to acquire Indee Gold for $15m,” executive chairman Simon Lill said.
“Since this time, we have rapidly grown the overall project resources to 1.7 million ounces and can clearly see significantly more ounces on the horizon.”
De Grey now has three drill rigs operating on its land package, which places it in good stead to grow its resource to +2 million ounces by the end of 2019 and to +3 million ounces in the medium term.
Since entering the option agreement, De Grey has aggressively explored the Indee Gold tenement package.
The company has successfully boosted the resources to 17.79 million tonnes at 2 grams per tonne (g/t) for 1.14 million ounces of gold, from 9.15 million tonnes at 1.8 g/t for 538,000oz.
On top of that, De Grey has added significant new resource centres that were not part of the 2017 resource estimate, notably Mallina and Toweranna, and defined significant new targets with substantial new resource potential.
De Grey recently locked in a $22m cash top-upafter it received commitments for a $3m placement and well respected broker Bell Potter Securities agreed to underwrite a $19.1m entitlement offer.
“We are fully funded to continue our focus on growing resources at our five large and under drilled resource areas — Toweranna, Withnell, Mallina, Mt Berghaus, and Wingina,” Lill said.
“We are also embarking on regional drilling for the first time in the search for new discoveries along our 200km of highly prospective shear zones and new intrusion targets.”
Resource extension reverse circulation and diamond drilling is underway at Toweranna and Withnell.
And over 10,000m of aircore drilling has been completed across various regional targets.
Results are pending and strong news flow is expected over the coming months.