Why the De Grey Mining (ASX:DEG) share price is storming 7% higher today

ASX investors are keeping a close eye on drill results.

The De Grey Mining Limited (ASX: DEG) share price is charging higher, up almost 7% to $1.16 in early afternoon trade.

The All Ordinaries Index (ASX: XAO) is in the green as well, up 0.5%.

Below we take a look at the latest gold results from the ASX resource explorer that look to be spurring investor interest.

gold, gold miner, gold discovery, gold nugget, gold price,

Image source: Getty Images

What gold results were announced?

The De Grey Mining share price is leaping after the company reported strong gold results from its Diucon deposit at Hemi, located in Western Australia.

The new resource definition results include:

  • 63 metres at 4.3grams of gold per tonne from 87 metres in drill hole HERC770
  • 9m @ 3.0g/t Au from 83.2m in HEDD106, and
  • 27m @ 5.3g/t Au from 55m in HERC787

According to the release, extension and infill drilling are both currently underway at the miner's Diucon and Eagle projects. Reverse circulation (RC) and diamond holes are targeting depth extensions and additional lodes to the south.

Management commentary

Commenting on the results, De Grey's general manager exploration, Phil Tornatora said:

Recent drilling at Diucon has increased the depth of mineralisation to approximately 550 metres below surface. Zones of higher gold grades, commonly associated with visible gold, continue to be intersected.

The southern lodes have been tested to a maximum depth of only around 200 metres vertically, and drilling is extending these at depth. In addition, the main zones of mineralisation continue to be extended along strike to the west and at depth, all of which are expected to contribute to an upgraded resource base at Diucon.

Tornatora added that De Grey is also conducting infill drilling it increase the resource confidence from JORC Inferred to Indicated classification.

De Grey Mining share price snapshot

The De Grey Mining share price is up 9% since this time last year. That's right in line with the 9% gains posted by the All Ords over the past 12 months.

Over the past month, shares in De Grey Mining are down 5%.

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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