The De Grey Mining Limited (ASX:DEG) share price is pushing higher on Thursday despite weakness in the gold sector. Here’s why…
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The De Grey Mining Limited (ASX: DEG) share price has been a positive performer on Thursday despite weakness in the gold sector.
In morning trade the gold-focused mineral exploration company’s shares are up 2.5% to $1.16.
Why is the De Grey Mining share price pushing higher?
Investors have been buying De Grey Mining’s shares this morning after it released further drilling results from its Hemi prospect in Western Australia.
Today’s update relates to activities at the Aquila and Crow zones which are located adjacent and to the north of the large Brolga intrusion at Hemi.
According to the release, step out and infill drilling at Hemi is on-going and the latest results at Aquila and Crow continue to firm up areas of high grade gold mineralisation within a much larger and broader gold system.
Management notes that some outstanding high-grade intercepts continue to be returned at Crow, whereas drilling at Aquila is continuing to extend the high grade plunging shoot to the west.
De Grey’s Managing Director, Glenn Jardine, was pleased with the latest set of results.
He commented: “The new results at Crow continue to demonstrate potential for higher grade lodes within the large, broad mineralised zones. The Company recently announced extensions to the northwest of Crow. Potential also remains for extensions to the northeast and southwest.”
More drilling is on the way and results are due in the near term from these activities.
Mr Jardine explained: “Wide spaced 80 by 80m extensional RC drilling continues in the northwest of Crow, with assay results awaited. Aircore drilling further to the west of the Crow intrusive has identified areas for follow up RC drilling. Drilling will continue at Crow to infill and expand the mineralised footprint. Drilling at the western end of Aquila continues and has extended mineralisation at depth and to the west toward Falcon.”
De Grey is on course to reveal its maiden resource estimate in the middle of next year.
“A broad mineralized zone is present at least 400 metres below surface that includes narrower high grade intervals. Total metres drilled at Hemi now exceed 200,000 metres since the discovery in December 2019. Seven rigs are currently operating around Hemi in support of completion of a maiden resource by the middle of 2021,” the managing director advised.
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Motley Fool contributor James Mickleboro 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.