The De Grey Mining Limited (ASX: DEG) share price is pushing higher on Wednesday.
In early trade, the gold explorer's shares are up 5% to $1.34.
Why is the De Grey share price is pushing higher?
The catalyst for the rise in the De Grey share price today has been the release of an update on its Mallina Gold Project in Western Australia.
According to the release, the measured and indicated mineral resources across the Mallina Gold Project comprise 3.8M ounces at 1.4g per tonne of gold. This is being underpinned largely by the Hemi deposit, which contributes 2.8M ounces at 1.3g per tonne of gold.
Management believes these mineral resources provide a strong platform for a scoping study targeted for completion in the September quarter 2021. It also notes that there is clear potential for the maiden Hemi and Global Mallina Gold Project mineral resources to grow along strike and at depth. Particularly given that substantial drilling programs have continued at Hemi since the mineral resource assay cut-off date of 17 May 2021.
Management commentary
Comments by De Grey's Technical Director, Andy Beckwith, appear to have given De Grey's shares a lift as well.
He said: "Hemi is an exceptional new Western Australian gold discovery which is redefining the gold potential of the Pilbara and has changed the future for De Grey and our shareholders. De Grey's exploration team has taken Hemi from discovery to a Tier 1 scale 6.8Moz gold deposit in a short timeframe."
"RC and diamond drilling commenced only 15 months ago and further extensions are expected at each deposit as drilling continues. Twelve drill rigs are currently focused on expanding Hemi as well as testing numerous targets within our large 100% owned, 150km long land package. I have no doubt we will be drilling and finding additional resources for many years to come," Mr Beckwith added.
Following today's gain, the De Grey share price has now doubled in value since this time last year.
