Special Report: The Hemi discovery in the Pilbara is the gift that keeps giving for De Grey, with drilling continuing to extend the size of both the Brolga and Aquila zones.

The latest reverse circulation and diamond drilling results have further increased the size of the Brolga zone to a strike of more than 240m long, a width of more than 200m and a depth of 220m.

Top results are 14m at 5.6 grams per tonne (g/t) gold within a broader intersection of 36m at 3.2g/t gold from 156m and 6m at 6.9g/t gold within a wider zone of 43m at 1.9g/t gold from 34m.

READ: Iron ore, lithium? The Pilbara’s also a top gold exploration address for these small caps

De Grey Mining’s (ASX:DEG) drilling has also defined the parallel Aquila zone to a strike length of more than 800m, a width of up to 50m and a depth of 180m.

Notable results are 51m at 2.1g/t gold from 108m including 8m at 4.9g/t gold, 62m at 1.4g/t gold and 22m at 1.5g/t gold from 88m that includes a higher-grade zone of 4m at 5.5g/t gold.

Both zones remain open in all directions.

“Brolga and Aquila are developing into two very large gold systems with widths of gold mineralisation never seen before in the project area nor the Pilbara region,” technical director Andy Beckwith said.

“The large anomalous gold area to the north of Aquila is now our focus for aircore drilling. Anomalous gold occurs in every hole above the interpreted intrusion in earlier wide spaced aircore drilling and provides scope for further new parallel discoveries.”

De Grey drilling brolga aquila hime pilbara
Drilling has extended the Brolga and Aquila zones at De Grey’s Hemi gold discovery Pic: Supplied

The current and previous results at Hemi could go a long way towards explaining why major shareholder DGO Gold (ASX:DGO) chose to exercise all options it held in De Grey last week.

DGO announced its intention to exercise 10 million options at 10c each and 12.5 million options at 30c each, that will add a tidy $4.75m to De Grey’s war chest.

It is also a clear indication of DGO’s confidence in the company given that De Grey shares are currently trading at ~19c.

Additionally, DGO has entered into agreements with three vendors for the purchase of a total of 40.9 million shares in De Grey in return for the issue of 6.5 million DGO shares and 3.3 million DGO options.

Should DGO’s shareholders approve the placement of its shares, DGO will increase its stake in De Grey from 10.7 per cent to 16.4 per cent.

Hemi was discovered in mid-December 2019 under a shallow ‘blanket’ of transported cover.

Since then, drilling has provided compelling support for the company’s theory that its rapidly growing — but grossly underexplored — 1.7-million-ounce Mallina project hosts numerous large deposits.

>> Now watch: 90 Seconds With… Andy Beckwith, De Grey Mining


This story was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.