Why the De Grey Mining (ASX:DEG) share price is charging 5% higher

The De Grey Mining Limited (ASX:DEG) share price is charging higher following the release of more positive drilling results…

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The De Grey Mining Limited (ASX: DEG) share price has started the week positively.

In early trade, the gold explorer’s shares were up 5% to $1.56.

This latest gain left the De Grey Mining share price trading within touching distance of its record high of $1.67.

Why is the De Grey Mining share price rising?

Investors have been buying the company’s shares this morning following the release of an update on drilling activities at the Aquila zone at its Hemi prospect in Western Australia.

According to the release, the metallurgical testwork results from the Aquila zone have revealed high gold recoveries that are consistent with the positive results previously achieved from the Brolga zone.

This work was conducted on twelve individual composites representing oxide, transition and primary mineralisation and one bulk composite comprising primary mineralisation.

The samples were sourced from the top 200vm of the Aquila zone early in the drilling program. Additional samples of oxide, transition and primary mineralisation will be collected from the Aquila zone for further testwork as necessary and as studies progress.

“Encouraging”

De Grey Mining’s Managing Director, Glenn Jardine, appeared to be pleased with the results and described them as “encouraging.”  

He commented: “The new metallurgical testwork results on oxide, transition and primary mineralisation from the Aquila zone at Hemi are encouraging. These results from Aquila are consistent with the positive results previously achieved from the Brolga zone at Hemi.”

“Our ongoing metallurgical testwork program continues to provide confidence in the multiple pathways available to achieve high gold recoveries from Hemi and the regional deposits across the Mallina gold project.”

“Each of the three potential oxidation processes has delivered high gold recoveries for the Brolga and Aquila zones. Each of the oxidation processes will be carried forward into future testwork. Further testwork and trade off studies underway will enable the Company to optimise the various aspects of our metallurgical testwork program in terms of capital, operating costs, recoveries and operability,” he concluded.

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.

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