De Grey Mining flags high-grade results from extensional drilling at the Eagle and Diucon deposits at Hemi
Extensions likely to add upside to Hemi gold project DFS
Drilling continues to target more extensions across the project
Special Report: De Grey Mining just keeps finding more gold at its world class Hemi project in Western Australia, saying extensional drilling at the Eagle and Diucon deposits represent further upside to a Definitive Feasibility Study released last year.
The DFS envisaged a 530,000ozpa operation at Hemi over an initial 10 years, along with great economics including an AISC of $1,295/oz on an assumed gold price of $2,700oz for post-tax cashflow of $4.5bn.
That $4.5bn is highly likely to increase (as is its post-tax IRR of 36%) if the spot gold price of $3,516/oz persists given its ~$800/oz higher than the conservative price used in last year’s landmark study.
These new extensional drill results at Eagle extend the deposit by at least 200m down plunge with mineralisation still open down plunge and along strike. They include:
4.6m at 31.8g/t Au including 1.1m at 130.5g/t Au
20.4m at 4.0g/t Au including 0.9m at 19g/t Au and 0.7m at 79.7g/t Au
16.5m at 1.8g/t Au including 7.5m at 3.4g/t Au
19.3m at 1g/t Au, 12.2m at 1g/t Au and 5.8m at 1.6g/t Au
7m at 1.2g/t Au and 20m at 1.8g/t Au, including 4m at 4.3g/t Au; and,
47m at 1.6g/t Au including 7m at 4.3g/t Au and 29.2m at 1.4g/t Au
At Diucon, limited relatively shallow drilling along strike to the southwest of the main resource returned intercepts including 2.5m at 3g/t Au from 383.4m and 4m at 1.6g/t Au from 429m.
Enhancing future underground mining potential
De Grey Mining (ASX:DEG) says additional resources in this area may allow expansion and deepening of the proposed Diucon and Eagle pits – which could potentially be considered in future mining plans.
“Further significant intercepts continue to extend Eagle at depth,” DEG general manager exploration Phil Tornatora said.
“In addition to potential resource increases, deeper drilling at Hemi will support our conceptual studies into potential underground mining in the future.”
Pic: Eagle Long Projection showing new drill results outside DFS open pit and November MRE. Source: DEG
More resource extension potential at regional targets
Discovery and resource extension drilling is continuing within the Hemi area and at regional targets.
Diamond drilling is also underway at Aquila, with ongoing reverse circulation drilling at Gorrion and Antwerp.
“Deeper diamond drilling is now focussed on extending the Aquila mineralisation at depth, with diamond drilling also being planned for Falcon and other targets,” Tornatora said.
This article was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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