An incredible suite of +100m gold intersections reported during drilling at De Grey Mining’s Hemi area in the Pilbara have firmed confidence in early production plans.

Resource definition drilling at De Grey’s (ASX:DEG) proposed Brolga stage-one starter pit, within the broader Hemi region of its Mallina gold project, demonstrated impressive mineral continuity.

Calculated to a 0.3 grams per tonne cut-off grade, the standout hits included:

  • 193m at 1.7g/t gold from 40m in HEDD218
  • 123m at 1.9g/t gold from 33m in HMRC054
  • 140.2m at 1.3g/t gold from 35.7m in HEDD302
  • 136m at 1.2g/t gold from 38m in HMRC055, and;
  • 128m at 1.2g/t gold from 94m in HMRC065

The company said the drilling improved confidence around early production from the proposed stage-one starter pit at Brolga, which was defined in the scoping study as 1.3 million ounces at 1.3g/t gold.

“These new resource definition drilling results at Brolga, including 193m at 1.7g/t gold in diamond drill hole HEDD218, successfully demonstrate the continuity of mineralisation within the proposed Brolga stage-one starter pit and reduce project risk associated with early production,” De Grey general manager exploration Phil Tornatora said.

“Resource extension drilling to the southwest of the proposed Brolga starter pit is now in progress.”

De Grey Mining
A cross-section of drilling at Brolga. Pic: Supplied.

Call of the drill rig

Resource definition work is being conducted at Brolga and within other zones at Hemi to increase the JORC indicated resources expected to be included in the project’s production target and ore reserve as part of its prefeasibility study.

Tornatora said the rigs would continue to turn at Hemi once the current resource work was done.

“Exploration drilling continues across both Greater Hemi and regional areas,” he said.

“Resource definition drilling is nearing completion, and rigs will then be targeting further resource extensional and discovery drilling within the Greater Hemi region.”

Brolga was identified, alongside the Diucon and Falcon zones, as one of the early proposed production sources in the scoping study released late last year.

Drilling was recently undertaken at Diucon, with similarly impressive extensional results.

De Grey expects the PFS to be released in the second half of 2022.

Earlier this month, De Grey technical executive director Andy Beckwith took part in a Stockhead panel discussion speaking on the company’s story and broader macro trends in the yellow metal.

You can listen into that conversation here – and probably should – Beckwith really does know his Au.




This article was developed in collaboration with De Grey Mining, 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.