The De Grey (ASX:DEG) share price is soaring today. Here’s why

What strong drilling results mean for this Aussie gold miner…

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Closeup of a smiling man holding a jar containing nuggets of gold

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The De Grey Mining Limited (ASX: DEG) share price has jumped 6.7% higher on Thursday. This comes after a positive update from the Aussie gold miner.

At the time of writing, De Grey shares are changing hands for $1.19.

What did De Grey announce?

De Grey provided an update to the market on “compelling new results” which seems to have investors excited.

The Aussie miner said recent results have “clear potential” to increase its 6.8 million ounce (Moz) Hemi resource in Western Australia.

De Grey managing director Glenn Jardine was bullish on the updated drilling results. He said: “The new drilling results at Diucon provide clear evidence that increases to the current Hemi resource can be expected with further drilling.”

He added: “The higher grade zones within these broad gold zones are also encouraging, as we continue to extend mineralisation to the west and conduct closer spaced drilling within the existing resource footprint.”

Extensional results on section 28720E and 28880E indicate a significant resource at De Grey’s Diucon deposit. That includes 173.7 metres at 1.5 grams per tonne of gold from 271.3 metres. That is 80 metres below the current resource.

That’s good news given the depth and width that could be available to mine from the key deposit.

Today’s release said the results show “clear potential to grow and upgrade” the current inferred mineral resource estimate. The ability to quickly and efficiently mine these resources is key to growing profitability for De Grey.

Foolish takeaway

The De Grey share price has been on fire in today’s trade. Shares in the Aussie gold miner have soared thanks to high-grade drilling results indicating a greater than anticipated Hemi resource in Western Australia.

The De Grey share price is up 54% in the last 12 months but remains up just 6% in 2021.

Should you invest $1,000 in De Grey Mining right now?

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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