Just before Christmas, gold explorer gives presents De Gray Mining (WKN 633879 / ASX DEG) Shareholders once again with strong drilling results from the giant Hemi gold discovery, which was made almost exactly a year ago – and which has catapulted the company up more than 2,000% since late February 2020!
The first and still largest zone of gold mineralization that De Gray discovered in the Hemi area is the Brolga Zone, on which, in addition to expansion, so-called determination drilling is currently being carried out. These drill holes, which De Gray is already drilling on the other gold zones Hemis, should allow the company to present a calculation with the first resource estimate for Hemi, which is targeted for mid-2021, in which one can have greater confidence than which is usually the case with a first resource. De Gray wants to present resources of the category inferred with this first estimate as well as resources of the category.
Determination drilling successful
And as the most recent drill results – the spacing between holes has been reduced from 80 meters to 40 meters – this shouldn’t be a problem as the Company has confirmed the continuity of mineralization between the more widely spaced drill holes with previous drill holes. The results continue to show thick zones of consistent gold mineralization and strong correspondences between adjacent drill holes, according to De Gray. A metallurgical drilling also demonstrated the consistent thickness and grades of the mineralization with results previously obtained with backwash drilling.
Extension wells show additional potential
In parallel with the determination drilling, De Drey tested the possible extent of the main Brolga mineralized zone on drop with multiple diamond core drilling in existing drill holes. And these holes indicated that the mineralization system remains open to depths greater than 600 meters!
And not only that, they also demonstrated several expansions of the Brolga main zone that were comparatively close to the surface, yielding 86 meters with 0.9 g / t gold from a depth of 25 meters (including 31 meters with 1.1 g / t Gold), 17 meters with 0.9 g / t gold from 272 meters, 16 meters with 1.0 g / t gold from 295 meters and 8 meters with 2.0 g / t gold from 350 meters!
De Gray also used these drill holes to obtain geotechnical information for potential future pits for mining.
The Company has not yet tested the areas between Brolga and Brolga South and between Brolga and the Falcon Zone with backwash drilling, but is now testing these areas for additional near-surface gold mineralization. The laboratory results of the first boreholes between Brolga and Brolga Süd are already being awaited while the drill bits in the area between Brolga and Falcon are currently turning.
De Gray Mining had a run in 2020 that can only be described as “madness”. This relates not only to the multiplication of the share price but also to the consistently convincing drill results from Hemi, which lead us to expect a spectacular first resource estimate in the coming year. In view of the already extensive and successful determination bores, this should also be significantly more robust than the “maiden resource calculations” of many other gold explorers!
2021 could also be a big year for De Gray, and not just because of the upcoming resource estimate – after all, the company is already looking for “the next Hemi discovery” on its Mallina project. The stock is – like every explorer – still risky, but the financing of more than A $ 100 million and the ongoing good drilling results have in our opinion reduced the risk considerably – while at the same time still high potential. We’ll definitely stay tuned!
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In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that partners, authors and / or employees of GOLDINVEST Consulting GmbH can hold shares in De Gray Mining and thus a conflict of interest could exist. Furthermore, we cannot rule out that other stock market letters, media or research firms will discuss the values we have discussed during the same period. Therefore, symmetrical generation of information and opinions can occur during this period. In addition, there is a consulting or other service contract between GOLDINVEST Consulting GmbH and a third party in the issuer’s warehouse (De Gray Mining), which creates a conflict of interest, especially since this third party grants GOLDINVEST Consulting GmbH for a fee for reporting De Gray Mining pays off. This third party can also hold, sell or buy shares in the issuer and would benefit from an increase in the price of De Gray Mining’s shares. This is another conflict of interest.
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