The dominant McLeod and Aquila lodes at De Grey’s (ASX:DEG) Hemi project could support a combined open pit mine, with high grade gold continuing at depth for a potential underground operation.

De Grey’s large Crow/Aquila gold system at Hemi continues to expand.

Drilling has now identified the main lode at Crow, called McLeod, over 600m length, 300m depth, and up to 60m true thickness.

It also remains ‘open’, which means De Grey hasn’t found where the gold ends.

Significant new thick, high-grade results at McLeod include:

−33m at 4.9g/t gold from 171m (incl 11m at 12.1g/t from 171m).

This new result is 80m away from the previously reported 19m at 42g/t gold from 170m.

Aquila Lode has been extended to 500m depth and also remains open.

Significant new extensional results include:

−52.2m @ 2g/t gold from 519.83m (incl 15.3m at 4.5g/t from 556.68m)

De Grey managing director Glenn Jardine says this large Crow/Aquila gold system continues to expand and be defined across multiple stacked subvertical lodes.

“The dominant lodes of McLeod and Aquila are oblique to each other, intersect at the eastern end and are expected to support a combined open pit scenario,” he says.

“Both lodes demonstrate high grade mineralisation that should also provide underground mining potential below any open pit mining limits.

The ongoing systematic infill RC drilling program at Crow has improved De Grey’s understanding of the continuity of mineralisation, Jardine says.

“Step out [extensional] drilling continues to extend mineralisation at all zones at Hemi,” he says.

“RC drilling also continues at the recently discovered Diucon and Eagle zones to the immediate west.”

Meanwhile, UK fund manager Jupiter Investment Management increased its stake in De Grey from 5.04 per cent to 6.04 per cent – a healthy tick of approval for the company.

Jupiter is a constituent member of the FTSE 250 Index which had assets under management of $105 billion by the end of 2020.


This article was developed in collaboration with De Grey, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.