Can De Grey Mining’s Share Price Recover to $1? (ASX:DEG)
The De Grey Mining Ltd [ASX:DEG] share price has opened higher today, with the release of new results from its Hemi gold discovery.
The DEG share price is a hot topic this year, rising ~1,750% from February to the start of July.
Since coming off its 52-week high of $1.065, DEG shares have slumped more than 25%.
Which could be thanks to a series of potentially underwhelming announcements.
However, momentum appears to be ticking upwards again.
DEG shares have reversed the losses made last week.
Upon the latest results from Hemi, DEG shares opened nearly 10% higher but have since given up most of today’s gains to trade just 3.45% higher, at 75 cents per share.
Has the hype worn off for the DEG share price?
Back in June it felt like we were being continually bombarded with high-grade gold finds.
But its feels like the hype might be wearing thin.
In DEG’s case this could explain the recent share price action.
Investors who got in early would have done well.
The news out of Hemi isn’t that substantial compared to what we have previously seen.
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What’s the deal with Hemi?
Today’s DEG update is solid.
They tick boxes — good grade, close to the surface.
- 39m at 3.2 grams of gold per tonne (g/t) from 180m, including 17.6m at 4.6g/t from 195.7m
- 8m at 2.0g/t from 180m, including 10.3m at 3.2g/t from 180.4m
- 23m at 2.0g/t from 246m, including 0.7m at 41.4g/t from 246.9m
Mineralisation remains open in all directions.
Again, this is good news because there is potential to grow Hemi further.
By all accounts there is potential for Hemi to be an important project.
However, if you follow our coverage of DEG here at The Daily Reckoning Australia, you might feel these results seem the same as the rest.
Not a bad thing given that DEG are finding high-grade gold mineralisation.
But we already have some clue of what is below the surface at Hemi.
The larger share price movements may come from when we get a resource estimate.
Then we will know what’s really there.
Here at The Daily Reckoning Australia we follow closely the happenings with Aussie gold miners and explorers. Our resident gold expert Shae Russell has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes in Aussie gold stock prices. If you want to learn more, download your free report here.
For The Daily Reckoning Australia