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Why The De Grey Mining Share Price Has Rocketed Over The Week

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

De Grey Mining Limited (ASX: DEG) has been one of the best performers on the Australian share market over the last week.

 

 

The gold focused mineral exploration company’s shares have more than tripled in value since the beginning of the shares drastic increase on the 3rd of February and are currently up 18.52% today at 16 cents per share.

The exponential increase in price comes after the company revealed a potential major gold discovery at its Hemi prospect in the Pilbara region of Western Australia.

In response to the discovery, the company commenced an aircore drilling program at the Hemi Prospect in order to better define the recent gold mineralisation.

The release of the report excited investors given the high-grade rating for Section A and Section B of the Hemi prospect.

Additionally, the company’s Technical Director, Andy Beckwith, expressed his excitement with the drilling results, stating;

For an exploration geologist, these results are both satisfying and exciting. Hemi’s shallow high-grade gold zones provide an excellent opportunity to increase resources and further derisk our path to production.

Mr Beckwith than further explained the results stating:

The individual assays down hole are very robust creating solid high-grade gold zones over considerable thicknesses which we expect to continue at greater depth. On Section A, drilling has defined a subvertical to south dipping 30m wide gold zone hosted in sediments. Section B shows a potential +60m wide gold zone in an intrusive with drilling yet to be completed below the oxide zone.

 

In summary, Mr Beckwith believes that these two zones are likely to be connected, meaning that the company is sitting on top of a lucrative asset.

We currently interpret that the two mineralised zones are structurally related, suggesting we could be drilling a major new gold discovery.

Furthermore, the positive drill results at Hemi now provide a key focus for near term resource definition drilling with an RC and diamond rig being mobilized to the site.

De Grey reported that the aircore drilling will continue to test along the Scooby Prospect to Antwerp Structural Trend (SAST) during the March quarter to define additional resource drilling targets.


Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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