De Grey Mining Limited (ASX: DEG) shares rocketed out of a trading halt to be up by as much as 34% today while the broader ASX was in a sea of red.
This jump was in response to the announcement of a major extension of sulphide mineralisation at the Hemi Prospect. De Grey shares ended the day 11.11% higher, while the S&P/ASX 200 Index (INDEXASX: XJO) closed 2.30% lower.
De Grey Mining is a minerals exploration company focused on exploration and development for gold, silver, and base metals in Australia. The company's current focus is on its Mallina Gold Project.
What did De Grey Mining announce today?
Today, De Grey Mining announced that very encouraging sulphide rich alteration has been observed at the newly discovered Hemi Prospect. This positive observation was made over large widths and depths from initial RC (reverse circulation) holes drilled on Section B of the Hemi Prospect.
De Grey Mining's technical director, Andy Beckwith, commented on the observation, saying:
"The significant sulphide zones beneath the high-grade gold zones on Sections A and B are very encouraging. 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. The aircore and RC programs are continuing, and a diamond rig is expected on site later this week," he added.
Previous Hemi Prospect discovery announcements
The De Grey share price has been a standout performer on the ASX this month after recently revealing a potential major discovery at its Hemi prospect.
According to the ASX release, aircore drilling at the newly discovered Hemi prospect had delivered outstanding initial results. This caused the De Grey share price to more than double on the day of the announcement, posting a one-day gain of 106%.
Since then, shares have gone on to rocket a further 110% to today's closing price of $0.20. The company has since pushed ahead with further aircore drilling in order to define the lateral extent, orientation and potential scale of the mineralised system. In addition, follow-up RC and diamond drilling activities have commenced with a view to establishing an initial inferred resource.
