The De Grey Mining Limited (ASX: DEG) share price is currently up 4.1% following news the company’s Hemi project has grown with its new Aquila extensions. This is good news for the company that has seen a recent slump in its share price thanks to the issue of new shares at prices of 28 cents and lower. The De Grey share price is currently trading at 75 cents.
What Happened?
De Grey announced that the Hemi project scale has grown with the new Aquila extensions. Aquila extensional drilling has continued after promising results were found at Hemi. The mine continues to find high grade mineralisation gold at various depths with gold found as deep as 350 vertical metres below surface. The finds indicate the potential for new gold zones between the Aquila and Brolga sites. Some of the highlights from the release are as follows:
- 39m @ 3.2g/t Au from 180m in HERC097D including 17.6m @ 4.6g/t from 195.7
- 31.8m @ 2.0g/t Au from 180m in HERC094D including 10.3m @ 3.2g/t from 180.4m
- 23m @ 2.0g/t Au from 246m in HERC100D including 0.7m @ 41.4g/t from 246.9m
- 33m @ 1.1g/t Au from 151m in HERC082D
De Grey Technical Director, Andy Beckwith, noted: “Aquila continues to grow as we extend drilling laterally and at depth. Mineralisation remains open in all directions with limits yet to be defined. The new aircore drilling to the west of Aquila has now extended the overall strike potential to 1.6km.”
What now for the De Grey share price?
The De Grey share price has been on a miserable run since it rocketed more than 107% in June. It is now down around 20% in July. However it is still likely to benefit from the rising gold prices, with gold recently flirting with its nine year high. Furthermore, the company is well backed by fund managers like John Forward, who have made impressive returns with the share price rising about 1400% this year.
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Motley Fool contributor Daniel Ewing 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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