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Why the De Grey Mining (ASX:DEG) share price is on watch today

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The De Grey Mining Limited (ASX: DEG) share price is on watch this morning, after the company announced news from its Hemi Gold Discovery Project.

In particular, the announcement highlights that De Grey has discovered more near-surface gold mineralisation.

The De Grey share price closed yesterday at $1.15. At the time of writing, shares in De Grey are trading for $1.17, up 1.3%.

Let’s look closer at the announcement made by the mining company this morning.

Hemi Gold Discovery Project

Today, De Grey shared a drilling update from Hemi. It has found depth and strike extensions at the project’s Falcon intrusion.

It has also found strong mineral intersections 90 metres below the surface and shallow mineralisation extended to the north of the intrusion.

Including the previously reported:

  • 180m vertically below 26.3m @ 2.3g/t Au from 309m, and newly announced:
  • 300m below and 20m south of 72m @ 1.6g/t Au from 108m.

Shallow mineralisation extended to the north of Falcon included:

  • 32m @ 1.8g/t Au from 63m and
  • 72m @ 1.6g/t Au from 108m.

The company additionally announced infill drilling has confirmed mineralisation continuity. These results included:

  • 45m @ 1.5g/t Au from 175m,
  • 41m @ 2.2g/t Au from 61m, and
  • 25m @ 1.2g/t Au from 148m.

The company discovered the resource near Hemi, Western Australia, in late 2019. Since then, its share price has increased 2,200%.

Management’s comments

De Grey manager director, Glenn Jardine stated the results confirmed the increasing scale and continuity of the resource at Hemi:

Results of extensional drilling completed this year at Falcon, Brolga, Aquila, Crow and Diucon/Eagle demonstrate that Hemi has more potential and remains open along strike and at depth. Results of infill drilling announced this year increasingly confirm continuity of mineralisation at each deposit and in the case of Crow, has identified multiple new sub-vertical lodes.

De Grey Mining share price snapshot

After today’s news, the De Grey Mining share price is ready for another good day on the ASX.

The company’s share price is only up by 3.6% year to date. Though, it makes up for the small year to date growth with its 360% increase over the last 12 months.

De Grey Mining has a market capitalisation of $1.48 billion, with approximately 1.2 billion shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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