De Grey Mining Share Price Up on New Depth Extensions (ASX:DEG)
It looks like momentum could be swinging in the favour of the De Grey Mining Ltd [ASX:DEG] share price after a fourth day of consecutive gains.
DEG announced major depth extensions at their Hemi Gold Discovery today, sending the DEG share price up 2 cents or 2.16% to trade at 94.5 cents per share.
The DEG share price has rebounded nicely from the poor metallurgical results DEG posted last week.
And with one of the most detailed overviews of Hemi given last week at DEG’s investor presentation, the poor gold recoveries seem to have been forgotten.
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Scale at Falcon grows
DEG’s latest results come from the Falcon zone at the Hemi Gold Discovery.
The results have added major depth extensions to the zone with mineralisation remaining open.
The drilling demonstrates thick zones of gold mineralisation within an intrusion up to 100 metres thick, 350 metres down dip and over 1,000 metres of strike.
Source: De Grey Mining
- 3m at 2.3 grams of gold per tonne (g/t) from 309m including 5.7m at 4.4g/t from 325.3m
- 2m at 1.8g/t from 212m including 4.0m at 4.1g/t from 218.0m
- 65m at 1.4g/t from 324m including 0.5m at 17.3g/t from 330.0m
- 55m at 1.0g/t from 263m including 3.5m at 3.6g/t from 298.0m
These are impressive results, particularly the broadness of the mineralisation.
DEG says that shallower infill drilling shows strong continuity with the results above.
General Manager of Exploration Phil Tornatora commented:
‘The latest extensional drilling at Falcon demonstrates the increasing scale of the zone with mineralisation now intersected over 1km strike and over 350m in depth.
‘Falcon is open at depth and deeper step out diamond drilling is being prioritised to test this potential. These recent results, and further depth extensions, have the potential to significantly increase the already substantive gold endowment at Falcon.’
What’s next for De Grey Mining Share Price?
The explorer won’t waste anytime on exploring what lies deeper at Falcon with step-out diamond drilling already underway to extend mineralisation to approximately 450 metres depth.
DEG says the Falcon intrusion extends for at least another two kilometres to the south.
However, drilling across this area to date has not defined significant mineralisation.F
Although the bulk of that work is wide-spaced, shallow drilling.
Meaning that further drilling to effectively test this zone in more detail is required.
Now with a clearer picture of what development at Hemi could look like — after DEG revealed a preliminary open pit design — we could see more interest return to the DEG share price.
The DEG share price could also be bolstered further in the coming months and years as Australia begins to surpass China as the gold capital of the world. 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