De Grey Mining Share Price Slips Despite Extension at Hemi (ASX:DEG)
One of the ASX’s top performing gold stocks, De Grey Mining Ltd [ASX:DEG], is trading lower this morning despite positive news about its Hemi gold discovery.
Gold stocks across the ASX are trading lower today, thanks to a sharp fall in the gold price overnight.
The DEG share price has gradually been giving back its stella gains made earlier in the year, thanks to the gold price slipping 3.53% over the past few months.
At the time of writing, the DEG share price is down 5.5 cents or 4.64% to trade at $1.13 per share.
Year-on-year, DEG shares have returned ~1,900%.
Aquila and Crow continue to grow
It’s difficult to know the exact cause of today’s share price drop. Is it the gold price or are investors just not that impressed with the results?
Results today have revealed new gold zones defined in extensional drilling in the north-western portion of Crow.
- Eight metres at 4.4 grams of gold per tonne (g/t) from 94 metres
- Nine metres at 1.5 g/t from 162 metres
- 10 metres at 3.6 g/t from 156 metres
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According to DEG, infill drilling continues to define mineralisation at Crow, including the recently identified lodes subparallel to Aquila:
- 15 metres at 1.8 g/t from 173 metres
- 28 metres at 2.6 g/t from 193 metres
- 31 metres at 1.1 g/t from 86 metres
Source: De Grey Mining
DEG Managing Director Glenn Jardine commented:
‘Extensional RC drilling in the west of Crow is encouraging and mineralisation remains open. The area further to the west of Crow is currently being tested with one of the two aircore rigs on site.
‘Infill drilling at Crow continues to highlight higher grade lodes within the overall mineralised system including 44 metres @ 2.6g/t Au from 51 metres in HERC320. Extensional drilling at Aquila continues to extend mineralisation to the west and downdip toward Falcon.’
What’s in store for De Grey Mining?
We are about eight months away from getting a good look at what’s really under the ground at Hemi, with the maiden JORC 2012 planned for the middle of 2021.
If you feel like we’ve been saying that for a while, so do I.
DEG has been rather comprehensive in its current drilling programs.
The explorer said the infill drilling program will continue over the coming months at all the Hemi zones to enable a robust resource estimate targeting a high level of ‘indicated’ category resources.
So, despite the slip in the gold price, DEG could find itself sitting pretty come mid-2021, especially given some of the results we’ve seen so far.
Another factor that could favour DEG is the ever-developing Aussie gold scene. Australia is getting ready to surpass China as the undisputed global leader in gold exploration, mining and production. In her latest report, 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.
For The Daily Reckoning Australia