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

The De Grey Mining Limited (ASX:DEG) share price is on the move on Thursday morning. Here's what you need to know…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The De Grey Mining Limited (ASX: DEG) share price is under pressure on Thursday despite the release of a positive announcement.

At the time of writing, the De Grey share price is down over 1% to $1.22.

What did De Grey announce?

This morning the gold-focused mineral exploration company announced drilling results from the Eagle and Diucon zones of its Hemi prospect in Western Australia.

According to the release, the mineralisation at Diucon and Eagle has been extended strongly following recent drilling activities.

At Eagle, the mineralisation has been extended to approximately 600 metres strike, 300 metres depth, and remains open to the north, west and at depth.

Whereas at Diucon the mineralisation width has extended to approximately 200 metres with new lodes intersected across strike. The Diucon strike is currently approximately 900 metres and mineralisation remains open at depth and beneath sediments to the west.

Another potential step change

De Grey's Managing Director, Glenn Jardine, was very pleased with the drilling results. He suggested that they could represent another step change to the gold endowment at the highly promising Hemi prospect.

He commented: "Diucon and Eagle potentially represent another step change to the gold endowment at Hemi. Both zones remain open along strike and at depth. RC drilling is currently on 160m spaced sections and 80m spaced collars on section. We have demonstrated 900m and 600m strike lengths respectively at Diucon and Eagle with significant grades and widths downhole. Mineralisation remains open along strike and at depth with multiple stacked lodes in places. RC drilling to determine overall scale along strike continues and diamond drilling of potential down dip extensions is expected to commence during the quarter."

Why is the De Grey share price dropping?

While today's announcement is a positive, it hasn't been enough to stop the De Grey share price from dropping.

News that the gold price pulled back overnight appears to have offset today's update.

Motley Fool contributor James Mickleboro 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.

More on Share Gainers

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 broke its losing streak to inch higher today.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Consumer Staples & Discretionary Shares

Bapcor shares soar 12% on the appointment of a new CEO

The market’s strong reaction reflects a clear message: investors are ready for a reset.

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Share Gainers

Why Bapcor, IDP Education, Netwealth, and Ora Banda shares are pushing higher today

These shares are catching the eye with solid gains on Thursday. But why are they rising?

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Healthcare Shares

This ASX stock is going parabolic, and I think it's still a buy

4DMedical shares are up nearly 500% in 2025, but improving revenue visibility suggests the growth story may not be over.

Read more »

An old-fashioned panel of judges each holding a card with the number 10
Share Gainers

Here are the top 10 ASX 200 shares today

It was another woeful day for investors this Wednesday.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Cedar Woods, Humm, Star, and Zip shares are storming higher today

These shares are having a better day than most on hump day. But why?

Read more »

bull market model with a bull looking at a rising chart
Opinions

By December 2026, $1,000 invested in EOS shares could be worth…

With its share price taking off and contracts piling up, EOS is shaping up as one of the most compelling…

Read more »

Army man and woman on digital devices.
Share Gainers

Guess which ASX 300 defence stock has already rocketed 51% this week (Hint, not DroneShield)

Investors have sent this ASX 300 defence stock flying this week. But why?

Read more »