De Grey Mining Shares Down, Progress Continues at Hemi (ASX:DEG)
The gold explorer De Grey Mining Ltd [ASX:DEG] share price has dipped today on the latest drilling results from its Hemi Gold Discovery.
With the gold price slipping and the broader market down today, DEG shares have suffered a similar fate.
Currently, the DEG share price is down 1.58% or 1.5 cents to trade at 93.5 cents per share.
Looking at DEG’s moving averages and it appears the DEG share price may have found its new bottom — retracing about 50% of its gains made since the discovery of Hemi.
Crow and Aquila continue to expand
Despite the negative DEG share price action today, the news from DEG is actually positive.
Latest drilling results have returned broad, high-grade gold intercepts from both the Crow and Aquila zones at the Hemi Gold Discovery.
DEG says that the main lode at Crow (McLeod) now identified more than 600m strike; 300m depth, and up to 60m true thickness and remains open.
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Significant new results in the McLeod lode at Crow include:
- 33m at 4.9 grams of gold per tonne (g/t) from 171m, including 11m @ 12.1g/t from 171m
- 8m at 2.1g/t from 308m
- 7m at 3.9g/t from 215m
While the Aquila lode was extended to 500m depth and remains open.
Significant new extensional results include:
- 2m at 2g/t from 519.83m, including 15.3m at 4.5g/t from 556.68m
- 12m at 3.6g/t from 371m, including 0.5m at 71.3g/t from 374.77m
- 1m at 1.2g/t Au from 405m
Managing Director Glenn Jardine commented on the sustained success of their drilling program:
‘The ongoing systematic infill RC drilling program at Crow has improved our understanding of the continuity of mineralisation. Step out drilling continues to extend mineralisation at all zones at Hemi.
‘RC drilling also continues at the recently discovered Diucon and Eagle zones to the immediate west.’
What’s with the DEG share price?
Like I said before, I suspect the DEG share price is being weighed down by a poor performance in the gold price and the broad ASX.
Rather than negative sentiment surrounding today’s announcement.
In my opinion, we could even see positive price action as the day goes on and investors are given time to assess the news fully.
Because there was a little gem of information buried in Mr Jardine’s comments.
Due to how both zones are situated next to one another, intersecting at the eastern end, Mr Jardine said DEG expect Crow and Aquila to support a combined open pit scenario:
‘Both lodes demonstrate high grade mineralisation that should also provide underground mining potential below any open pit mining limits.’
Which could help produce favourable mine economics.
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