The De Grey Mining Limited (ASX:DEG) share price has been on fire again on Friday. Here’s why it is up 16% today and 3000% in 15 months…
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The De Grey Mining Limited (ASX: DEG) share price has been a very strong performer on Friday.
In afternoon trade the gold exploration company’s shares are up 16% to $1.55.
This leaves the De Grey Mining share price trading within touching distance of its record high of $1.60.
Why is the De Grey Mining share price rocketing higher?
Investors have been fighting to get hold of the company’s shares today following the release of drilling results from its very promising Hemi prospect in Western Australia.
According to the release, strong mineralisation has been intersected at its Aquila and Crow sites.
At Aquila the company reported impressive resource definition and extensional drilling, with significant new intercepts. Whereas at Crow, visible gold was intersected again in the McLeod lode.
De Grey’s General Manager of Exploration, Phil Tornatora, commented: “Aquila-Crow is one of the more structurally complex areas at Hemi and has significant gold endowment. The McCleod Lode at Crow has now produced a number of thick, very high grade intersections which add significantly to the resource potential.”
“Improved targeting of these high-grade zones is ongoing as we gain a better understanding of the geological controls. Aquila continues to produce consistent, wide gold intersections throughout the lode, particularly in shallower portions,” he added.
This latest drilling update reinforces the view that De Grey Mining is sitting atop a significant gold deposit.
Unsurprisingly, this has been reflected in the De Grey Mining share price. Today’s gain means it is now up a massive 318% since this time last year.
And if you stretch back a tiny bit further to the start of 2020, the return stretches to over 3,000%.
This has taken the company’s market capitalisation to approximately $2 billion, which demonstrates just how excited investors are about the Hemi prospect.
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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.