De Grey (ASX:DEG) share price leaps 8% as project confidence grows

Infill drilling results further de-risk De Grey’s gold project…
The post De Grey (ASX:DEG) share price leaps 8% as project confidence grows appeared first on The Motley Fool Australia. –

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.

Next steps

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.

Should you invest $1,000 in De Grey Mining right now?

Before you consider De Grey Mining, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and De Grey Mining wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Chalice, De Grey, Estia Health, and Fortescue shares are racing higher

Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling

De Grey Mining (ASX:DEG) share price sinks 9% after raising $125m

De Grey (ASX:DEG) share price halted amid $125 million cap raise

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!