The De Grey Mining Limited (ASX: DEG) share price is surging today. At the time of writing, shares in the gold miner are trading for $1.55 – up 11.5%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.31% higher.
The company comes into focus this morning as it announces “significant” drilling results at one of its sites in the Pilbara region of Western Australia.
Let’s take a closer look at today’s news and what it means for the De Grey share price.
What’s affecting the De Grey share price?
In a statement to the ASX, De Grey Mining says initial drill results at the Diucon-Eagle mining sites in the Hemi prospect have confirmed a large mineralised system.
The company highlighted the following results:
- a 14m wide ore with 21.2g of gold per tonne.
- a 19m wide ore with 4.4g of gold per tonne.
- a 17m wide ore with 5.7g of gold per tonne, and
- a 61m wide ore with 2.g of gold per tonne.
De Grey says the results “demonstrate the potential to rapidly and cost-effectively” add to its site gold endowment.
Investors are reacting well to today’s news, judging by the De Grey share price climb.
Management commentary
De Grey managing director Glenn Jardine said:
These recent results at Diucon and Eagle confirm the presence of a large mineralised system in the west of Hemi. Both zones remain open to the west toward Antwerp. Diucon and Eagle represent another step change to the gold endowment at Hemi.
RC drilling to determine the overall scale along strike continues and diamond drilling of potential down dip extensions is expected to commence during the quarter.
Gold commodity price
Gold is currently trading on the commodity market for around US $1,790 per troy ounce. It’s down 5.54% since the beginning of the year and 13.4% lower compared to its record of US $2,069 per troy ounce. Gold hit that record in August last year. However, it is 3.6% higher over the last month.
The website Trading Economics attributes the precious metals recent rise to “a weaker dollar and lower treasury yields” as well as fears over rising COVID cases in parts of the world. Gold is seen as a safe investment by some investors, according to the website.
De Grey share price snapshot
Over the past 12 months, the De Grey share price has increased 308.2%. Its share price shot up 16% on 23 April, as the miner announced preliminary results at other sites in the Hemi prospect.
De Grey has a market capitalisation of $1.9 billion.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO
- Why the De Grey Mining (ASX:DEG) share price is surging 16% higher
- Why Accent, AMP, De Grey, & Nuix shares are charging higher
- Why the De Grey Mining (ASX:DEG) share price is dropping today
- Why the De Grey Mining (ASX:DEG) share price is on watch today
Motley Fool contributor Marc Sidarous 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.
The post De Grey (ASX:DEG) share price rockets 11% on latest update appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2RqyqAc
Leave a Reply