De Grey Mining Share Price in Breakout with Gold Extension (ASX:DEG)

De Grey Mining Share Price in Breakout with Gold Extension (ASX:DEG)

The De Grey Mining Ltd [ASX:DEG] share price has broken through resistance and has shot up after being released from a trading halt yesterday.

The push upwards comes after news of further mineralisation extensions at Hemi.

When we covered DEG last week shares had met resistance at around the 85-cent level.

A week on and DEG has now broken through that level and reclaimed the key $1 mark.

At time of writing, DEG shares are up 15 cents or 16.95% to trade at $1.035 per share.

The new bout of upwards momentum lands shares close to their 52-week high of $1.065.

ASX DEG Share Price Chart - De Grey Mining Shares

Source: Tradingview

Drilling significantly extends Crow

Last week I noted that the reason for the recent price resistance could stem from a shortage of tangible new information coming out of Hemi.

Though results claimed to grow the mineralisation, they appeared to be confirming investors’ expectations.

Not a bad thing.

Just not enough to get the share price going.

Like we discussed last week, it felt like investors were holding out for something more significant.

Something that would likely increase the gold endowment at the project.

Today’s drilling results have transformed the original perceptions at the Crow zone on the Hemi gold discovery.

That’s according to DEG Managing Director Glenn Jardine.

‘[Results] demonstrate the potential for Crow to significantly add to the overall gold endowment at Hemi and to meaningfully contribute to a potential large scale, near surface open pit production scenario. The mineralised footprint at Crow is currently approximately 1,000m by 400m and remains open.

Aussie Gold Miner Stocks: Free report reveals why Australia is set to become the next ‘gold epicentre’ — which could result in a HUGE spike in Aussie gold stock prices. Click here to learn more.

Highlights include:

  • 64m at 13.4 grams of gold per tonne (g/t) from 141m in hole HERC238, including 19m at 42.0g/t from 170m (which in turn includes 8m at 84.7g/t)
  • 12m at 2.4g/t from 109m
  • 24m at 1.1g/t from 51m
  • 31m at 2.2g/t from 69m

Results are visualised below.

De Grey Mining Hemi Aquila Gold Project Crow Cross Section

Source: De Grey Mining

Notice the thick gold mineralisation in the centre.

According to DEG it is the best result drilled on the project to date.

Hemi shaping up to be a tier-1 deposit

Mr Jardine said DEG is making progress towards turning Hemi into a tier-1 scale gold deposit.

A tier-1 gold asset is a mine with a stated life in excess of 10 years, annual production of at least 500,000 ounces of gold.

Which will put Hemi up there with Olympic Dam, Broken Hill and Cadia East mines.

There is little doubt of DEG’s success thus far.

Its share price rise of ~1,600% in the past 12 months is a tribute to their success.

With the boom in Aussie gold stocks recently, Australia could surpass China as the undisputed global leader in gold exploration, mining, and production. Our gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.

Kind regards,

Lachlann Tierney

For The Daily Reckoning Australia