2024 has been a tremendous year for gold and gold stocks. Only recently, after US presidential election, these have rather dampened. Now with gold stabilising above $2600 per ounce, some such stocks are ready to gallop again. Prominent among these potential growth companies is
De Grey Mining Limited (ASX: DEG)
De Grey Mining Limited (ASX: DEG) has provided a significant update on its Hemi Gold Project, reflecting continued growth in mineral resources. The most recent Mineral Resource Estimate (MRE) for the Hemi deposit, released on 14 November 2024, shows a 0.7-million-ounce increase, bringing the total to 11.2 million ounces. This update is based on drilling activities conducted from November 2023 to October 2024. The MRE now comprises 264 million tonnes at 1.3 g/t gold, with 11.2 million ounces of gold. This includes a maiden Measured Resource of 0.6 million ounces at Brolga, which de-risks the initial 12 months of mining. Notably, drilling at Hemi has consistently expanded the resource by around 1.3 million ounces per year since the initial resource release in 2021.
In addition to the Hemi MRE, the overall regional resource, which includes deposits at Withnell, Calvert, and other regional areas, has grown by 0.9 million ounces, reaching a total of 13.6 million ounces. Specific increases in the Hemi deposits include a 0.36 million-ounce rise at Crow, 0.14 million ounces at Aquila, and 0.16 million ounces at Eagle. These updates are supported by extensive drilling, with 591 diamond drill holes and 1,497 reverse circulation (RC) drill holes completed since February 2020. This drilling has revealed significant potential for further resource growth, particularly in the deeper, untested areas of the Aquila-Crow and Eagle deposits, which are open at depth and could support underground mining in the future.
An important aspect of the recent drilling campaign has been infill drilling at the Brolga deposit. This was aimed at enhancing the ore production and scheduling for the first year of mining. With drill spacing tightened to 20 meters, the infill results have validated the Hemi Definitive Feasibility Study (DFS) mine plan and bolstered the case for rapid capital payback from the Brolga Stage 1 pit. Early results from this program indicate strong continuity in the orebody, with the first-year production forecast at 9.9 million tonnes at 1.65 g/t for 525,000 ounces of gold. These results will contribute to a conversion of the Indicated Resource at Brolga into Measured Resources, providing further confidence in the project’s feasibility.
De Grey Mining, one of the high growth stocks continues to target significant expansions at Hemi and in its regional exploration. Drilling at Hemi and surrounding areas is focused on finding new, shallow gold discoveries, along with extensions to known deposits. The company is also conducting a study into the potential for underground mining at Hemi, which could significantly increase the mine life and gold production. With continued exploration and strong drill results, De Grey Mining is positioning itself for sustained growth, with ongoing exploration at its regional prospects including the Egina and Farno JV areas with Novo Resources.
Source: Company’s Report
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