With gold stock market showing promise, investors are flocking to best gold mining stocks. Gold ratios trending up are indicating gold mining industry benefitting from it, bringing ASX gold companies into focus.
De Grey Mining Limited (ASX: DEG)
De Grey Mining Limited (ASX: DEG) has announced significant exploration results for the Eagle deposit at its Hemi Gold Project. The recent drilling has extended the Eagle mineralization by at least 100 meters down plunge, with the mineralization remaining open in both directions. Including the drill results like the 78.1 meters at 7.9g/t gold highlight the high-grade nature of the deposit. This new data supports the potential for future underground mining, enhancing the Hemi Definitive Feasibility Study (DFS) production metrics. In the first quarter of 2025, further diamond drilling will be conducted, along with metallurgical, geotechnical, and hydrological studies to support the potential underground operation. Meanwhile, the company's Northern Star Resources acquisition under a Scheme of Arrangement is progressing, with De Grey shareholders to receive 0.119 Northern Star shares for each De Grey share. This deal, offering a 37.1% premium to De Grey’s recent share price, remains subject to shareholder and court approvals in April 2025.
For the quarter ending December 2024, De Grey’s financial position remained strong with $786 million in cash and short-term deposits. DEG, one of the top gold stocks, is moving forward with financing the Hemi Gold Project development, supported by a senior debt facility. The updated Mineral Resource Estimate (MRE) for Hemi now totals 264 million tonnes at 1.3g/t gold for 11.2Moz, and for the broader project area, it stands at 310Mt at 1.4g/t gold for 13.6Moz.
Additionally, infill drilling at Brolga has confirmed the consistency of mineralization, and a maiden Measured MRE of 12.7Mt at 1.4g/t for 0.6Moz was established. The Hemi project has also secured mining lease approvals for most of its deposits, and environmental approval submissions are in progress. The project’s next steps include construction and the anticipated two-year timeline, contingent on regulatory approvals.
Gold Road Resources Limited (ASX: GOR)
In the December 2024 quarter, Gold Road Resources Limited (ASX: GOR) reported record production of 91,631 ounces of Gruyere gold at an All-in Sustaining Cost (AISC) of A$1,811 per attributable ounce. This is a considerable increase over the September quarter's production of 68,781 ounces and AISC of A$2,551 per ounce. For 2024, Gruyere’s total annual production reached 287,270 ounces (143,635 ounces attributable), slightly falling short of the guidance of 290,000 – 305,000 ounces. The average AISC for 2024 was A$2,211 per attributable ounce, missing the annual target of A$2,050 – A$2,200 per ounce. For 2025, the company has provided production guidance for Gruyere between 325,000 and 355,000 ounces (162,500 – 177,500 attributable) at an AISC range of A$2,400 – A$2,600 per ounce.
Gold Road is among the gold companies to invest in, having achieved record quarterly gold sales of 47,745 ounces at an average price of A$4,093 per ounce. Cash and equivalents increased to A$173.9 million from A$109.2 million in the previous quarter, with attributable operating cash flow from Gruyere growing to $141.7 million. Gold Road also provided updates on its growth projects, particularly the Yamarna Mine Readiness Project, which outlined a high-grade Ore Reserve of 0.19 million ounces at 4.10 g/t Au at Gilmour. The pre-feasibility study forecasts a 5-year project with free cash flow of $377 million and an NPV5 of $231 million at a conservative gold price of A$3,500 per ounce. Exploration activities continued at Gruyere, with drilling planned for 2025 below the open pit to assess mineralisation to a depth of 1,200 metres.
Additionally, drilling was undertaken at Mallina, Balter, Yamarna in Western Australia, and at Breakaway and Graceland in Queensland. The Gruyere underground study and exploration plan are set to expand the mine life beyond 2032, with a 60,000-metre diamond drilling program and a $15 million budget for 2025 to further explore and develop the potential underground resources.
Source: Company’s Report
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