The De Gray Mining Limited (ASX:DEG) share price has bolted more than 6% in early trade after the company released strong drilling results.
Highlights from De Gray’s results
Earlier today, De Gray released drilling results from the western extension of the Aquila site at the Hemi Gold Discovery in Western Australia. The results were collected from shallow aircore and RC drilling at the western end of Aquila.
The report highlights included;
- 16m @ 3.7g/t Au from 43m including 10m @ 5.4g/t in HERC141 (ending in mineralisation)
- 16m @ 2.1g/t Au from 44m in BWAC783 including 4m @ 3.5g/t
- 13m @ 1.8g/t Au from 71m in BWAC908 including 2m @ 3.8g/t
- 8m @ 1.6g/t Au from 56m in BWAC800
The results confirm shallow gold mineralisation over approximately 400 metres in the north-south direction. De Gray’s management noted the potential in a larger extension of the Aquila gold system. As a result, further drilling is planned for Aquila with the strike potential now spanning more than 1.6km.
What does De Gray Mining do?
De Gray is a mining company based in Western Australia that focuses in gold exploration and development activities. The company has 100% ownership of the Mallina Gold Project in the Pilbara region and is also the site of the Hemi Gold Project.
The Hemi Project is made up of various zones including; Aquila, Brolga, Brolga South and Crow. De Gray has noted thick and high-grade mineralisation across the project and expects the site to deliver high value given the size, grade continuity and growth potential.
In late April, De Gray completed a $31.2 million capital raising in order to fund the ongoing exploration of the Hemi Project. The company’s share price has reflected the optimisim of the new project, having rallied more than 280% since late April. The De Gray share price has also been assisted by the surge in the spot gold price in 2020.
At the time of writing, the De Gray share price is trading more than 5% higher for the day at around 84 cents after hitting an intra-day high of 85.5 cents.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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