Drilling Turns Up Good Results for De Grey Mining Share Price (ASX:DEG)

De Grey Mining Ltd [ASX:DEG] released a drilling update today at its Hemi gold discovery, which is located about 60 kilometres south of Port Hedland in Western Australia.

De Grey Mining is a Western Australian explorer and developer listed on the ASX.

It’s focused on the Mallina Gold Project, which is located in the Pilbara region and which it fully owns. In June 2019, it identified an area called Hemi, and discovered gold near the surface. You can get a glimpse of it in the map below:

ASX DEG Share Price - De Grey Mining Map

Source: De Grey Mining

Hemi has several zones including Aquila, Brolga, Crow and Brolga South.

What were De Grey’s results today?

The company said its first round of infill drilling confirmed consistency and continuity of gold mineralisation at its Hemi gold discovery.

The target area was 40 metres along existing 80-metre spaced sections to better define the continuity of grade at Brolga, which is the largest gold zone at Hemi so far.

Some of the drilling results at Brolga included: Six metres at 2.8 grams per tonne (g/t) of gold from 54 metres, 81 metres at 1.7 g/t from 37 metres, 46 metres at 2.7 g/t from 43 metres, and 23 metres at 1.6 g/t from 65 metres.

The results, in the company’s words, ‘provide strong consistency and continuation of gold mineralisation within the larger Brolga intrusion, new extensions to the NE into the sediments surrounding the intrusion and additional mineralisation within the Brolga (South) intrusion. Extensions of the Brolga (South) intrusion remains a high priority as it narrows, remains open and parallels the new Falcon intrusion.

What’s next for the DEG share price?

Over the coming months, the company plans to continue with its infill drilling program in all zones at Hemi. The goal is to provide additional drill density and end up with a strong resource estimate, targeting a high percentage of JORC 2012 indicated category resources. DEG is looking to release the resource estimate by mid-2021.

Shares for De Grey Mining are up close to 3%. At time of writing, shares are trading at $1.29. And they’ve been increasing for a while, up over 2,400% since the beginning of the year, when they were trading at five cents.

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Selva Freigedo,

For The Rum Rebellion

Selva Freigedo is a research analyst for The Rum Rebellion.

Born in Argentina, her passion for economic analysis started at a young age. Her father was an economist for the Argentinean governments and the family used to discuss politics and economics at the dinner table.

Argentina is a country with an unusual economic history. Growing up there gave Selva first-hand experience on different economic phenomena such as hyperinflation, devaluation and debt default.

Selva has also lived in Brazil, Spain and the USA.

Back in 2000 she was living in the US as the dot com bubble popped…
And in 2008 she was in Spain as the property market exploded and then collapsed…

She has seen first-hand what happens when bubbles burst.

Selva joined Fat Tail Investment Research’s team in 2016, as an analyst. She now writes from her vantage point in Australia, where she settled in 2015.

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