Special Report: De Grey shares have headed north again on news the emerging gold developer has extended its high-grade Hemi discovery, part of the 1.7-million-ounce Mallina project in the Pilbara.
Investors lapped up the news this morning, sending shares up over 33 per cent to an intra-day peak of 24c.
This new greenfields discovery is an important find for De Grey and was already ticking several boxes – it is thick, shallow and high-grade.
Now, it looks as if this valuable find is much more than just a “shallow” discovery.
De Grey says recent drilling on Section B at the Hemi prospect intersected “very encouraging” sulphide-rich alteration over large widths and depths.
On top of that, one hole drilled into Section A hit intense sulphide mineralisation at depth, finishing in mineralisation, beneath the 30m-wide high-grade gold zone.
“The significant sulphide zones beneath the high-grade gold zones on Sections A and B are very encouraging,” technical director Andy Beckwith said.
“The large sulphide zones on Section B have the potential to significantly increase Hemi’s scale. The genetic link between Sections A and B as intrusion hosted is exciting and increases the potential at Hemi.
“This is supported by the aircore drilling results to date that highlight every hole above the interpreted intrusions are anomalous in gold.”
While results are still pending, the significance of this latest find is that De Grey has now increased the depth extent of sulphide mineralisation below 150m.
There are also multiple new parallel sulphide zones to the south in Section B that remain open – meaning De Grey hasn’t reached the edges of the system just yet.
And there remains a hole drilled to the south which hit 4 grams per tonne at the bottom of the hole.
Previous aircore intersections announced at Section B show grade increasing as the intercept moves into the sulphide zone within the fresh rock which makes the pending assay results even more interesting.
At today’s insanely high record gold price of just under $2,500 an ounce in Aussie dollar terms, grades of as low as 2g/t can be profitable.
De Grey isn’t resting on its laurels, with reverse circulation drilling continuing to test priority aircore targets with the goal of securing greater detail and extending mineralisation at depth.
Hitting paydirt
The untouched Hemi prospect was discovered mid-December 2019 under a shallow ‘blanket’ of transported cover.
Maiden thick and high-grade results like 12m grading 9g/t supported De Grey’s theory that its rapidly growing — but grossly underexplored — 1.7-million-ounce Mallina project hosted numerous large deposits.
The first seven follow-up holes at Hemi intersected the thick, high-grade zone on two sections 640m apart.
And the gold zone at both A and B remains untested and entirely ‘open’ in multiple directions.
The previously announced results on February 6 sparked a ~270 per cent surge in the explorer’s share price.
Investors will be watching this one closely to see just how big a gold find De Grey is sitting on.
>>NOW WATCH: 90 Seconds With… Andy Beckwith, De Grey Mining