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De Grey Mining Limited, provides strong and consistent mineralisation result

Team Veye | 02 Oct 2020 ASX - DEG
De Grey Mining Limited, provides strong and consistent mineralisation result

De Grey Mining Limited (ASX: DEG)

Strong Brolga infill and extensions

De Grey Mining Limited (ASX: DEG, “De Grey”, “Company”) on 25 September 2020 provided the following drilling update at the Hemi Gold Discovery, located approximately 60km south of Port Hedland in Western Australia.

(Chart source: TradingView)

Highlights:

  • Initial infill resource definition drilling (80m sections x 40m spaced holes) demonstrates remarkable consistency within holes and strong continuity of mineralisation between holes:
    • 81m @ 1.7g/t Au from 37m in HERC192
    • 46m @ 2.7g/t Au from 43m in HERC196
    • 23m @ 1.6g/t Au from 65m in HERC197
    • 27m @ 1.6g/t Au from 98m in HERC197
    • 23m @ 1.3g/t Au from 143m in HERC198
    • 18m @ 1.4g/t Au from 188m in HERC198
    • 26m @ 1g/t Au from 109m in HERC199
    • 32m @ 1.4g/t Au from 154m in HERC199
    • 17m @ 2.1g/t Au from 105m in HERC183
    • 17m @ 1.5g/t Au from 72m in HERC186
    • 9m @ 3.7g/t Au from 62m in HERC189
    • 49m @ 0.9g/t Au from 168m in HEDD009 (Met hole)
  • Extension drilling shows additional gold mineralisation to the NE and remains open
    • 23m @ 1.1g/t Au from 50m in HERC304 (Brolga NE)
  • Follow-up drilling in the Brolga South intrusion defined additional mineralisation. The intrusion remains open to the south, parallel to the new Falcon intrusion
  • 7m @ 5.4g/t Au from 163m in HERC170 (Brolga South) (Data Source – Company Reports)

 

Veye’s Take

This first round of infill drilling to 80m x 40m spacing at Brolga provides strong support and confirms the consistency and continuity of gold mineralisation as expected. The infill drilling program will continue over the coming months at all the Hemi zones to enable a robust resource estimate targeting a high level of JORC 2012 Indicated category resources by the middle of 2021. The results provide strong consistency and continuation of gold mineralisation within the larger Brolga intrusion. The brief correction in the stock appears to be losing momentum. RSI has already turned up just prior to its strong support at $1.27. There is an important resistance at $1.54 which when crossed with volumes can have the potential of moving very strongly in the near to medium term. “Buy” was given to “De Grey Mining Limited” at the price of $0.895 on 24 August 2020. It has already grown by more than 43% in less than one and a half months. Veye maintains a "Hold" on “De Grey Mining Limited” at the current price of $ 1.285

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