The De Grey Mining Limited (ASX: DEG) share price performed exceptionally well on Thursday. Shares in the gold explorer gained momentum throughout the day after the company released infill results to the market.
These results were positively received by investors. In turn, the De Grey share price surged 8.2% to $1.25. However, the ASX-listed mining company wasn’t the only solid performer in the sector today. Other honourable mentions include Fortescue Metals Group Limited (ASX: FMG), Mineral Resources Limited (ASX: MIN), and Evolution Mining Ltd (ASX: EVN) — all trumpeting a gain of more than 4% on Thursday.
With all that being said, let’s take a closer look at De Grey’s latest announcement.
Infill results a positive for the De Grey share price
Investors have been instilled with some additional confidence following De Grey’s published results from today. Importantly, the infill drilling undertaken within the proposed Brolga Stage 1 pit demonstrated consistency in its gold discovery.
Infill drilling is used to give a higher resolution understanding of the discovered mineralisation during a prior drilling program. In short, holes are drilled in between the previously drilled holes to map out exactly where the gold might be located and how much of it.
In De Grey’s latest infill drilling across multiple sections, it was determined that the mineralisation holds consistent throughout much of the scoped area. Unsurprisingly, this result was met with enthusiasm towards the De Grey share price today.
For reference, the proposed Brolga Stage 1 pit comprises 1.29 million ounces at 1.3 grams of gold per tonne. The drilling shared with investors today produced similar numbers, such as:
- 80m at 1.6g/t Au from 36m
- 93m at 2.2g/t Au from 43m
- 127m at 2.0g/t Au from 35m
- 114m at 1.5g/t Au from 126m
Commenting on these results, De Grey general manager exploration, Phil Tornatora said:
The recently announced scoping study of the Mallina Gold Project identified Brolga as an early production source. These new resource infill drilling results successfully demonstrate the continuity of mineralisation within the proposed Brolga Stage 1 pit. Resource infill drilling is reducing project risk associated with early production. The 40m x 40m drill spacing at Brolga is expected to provide a high level of confidence in the early production from Brolga.
Positively, the results give increased confidence in the project’s projected cash flow from early production sources.
Following this, De Grey will continue its infill drilling program as part of its pre-feasibility study of the Mallina Gold Project. Specifically, the program is expected to run over a further three months.
Finally, drilling is continuing across the company’s Great Hemi and Regional areas. This includes three aircore and three RC rigs engaged in exploratory activities.
The post De Grey (ASX:DEG) share price leaps 8% as project confidence grows appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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