De Grey Mining Limited (ASX: DEG) shares are failing to ignite today despite the company providing a positive drilling update. At the time of writing, the De Grey share price is trading flat at 95 cents. This comes following a 10.53% surge in the De Grey share price during yesterday’s session.
The minerals & exploration sector bounced back yesterday after a three-day lull. Mining companies including Piedmont Lithium Ltd (ASX: PLL) and Ramelius Resources Limited (ASX: RMS) finished the session with gains of over 12%.
Let’s take a look at what De Grey announced this morning.
Positive drilling results
This morning, De Grey released its latest drilling results relating to the company’s Hemi Gold Discovery project.
Summarising the discovery, De Grey managing director Glenn Jardine said:
The large Crow/Aquila gold system continues to expand and be defined across multiple stacked subvertical lodes. The dominant lodes of McLeod and Aquila are oblique to each other, intersect at the eastern end and are expected to support a combined open pit scenario. Both lodes demonstrate high grade mineralisation that should also provide underground mining potential below any open pit mining limits.
The company reported “significant new gold results” in drilling. This includes 24.8m @ 2.1g/t Au from 308.19m at the McLeod Lode and 52.2m @ 2g/t Au from 519.83m at the Aquila Zone site.
Change in substantial holding
In other news, De Grey also announced this morning that London-based Jupiter Asset Management Limited has grown its position in the business.
Jupiter purchased approximately 2.1 million more shares over the past two days and now holds 6.04% voting power in the exploration company.
Average trading volumes of De Grey shares have been exceeded in three out of the past five days.
De Grey share price snapshot
Over the past 12 months, the De Grey share price has soared by more than 300%. However, year to date, De Grey shares have lost nearly 15%. Based on the current share price, the company has a market capitalisation of around $1.2 billion with 1.3 billion shares outstanding.
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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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