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