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Highlights:
- Definitive feasibility study drilling reveals strong widths and high grades beneath the Eagle pit design
- Mineralisation extends for over 1 kilometre down plunge at Eagle, remaining open at depth and along strike
- Infill drilling confirms potential for new lode development in the hanging wall of the Eagle deposit
De Grey Mining Ltd (ASX:DEG) has disclosed significant progress at the Hemi gold project in the Mallina Gold Province, Western Australia. The latest results provide further evidence of the prospect’s high-grade character and broad mineralisation zones, bolstering confidence in the project’s long-term potential.
Strategic Location and Project Overview
The Hemi prospect is situated within a prolific gold district and has emerged as a key exploration target. Situated on the Mallina Basin greenstone belt, this area is known for hosting structurally controlled gold mineralisation. Consistent results from ongoing drilling programs have highlighted Hemi’s position as a potentially transformative asset within De Grey Mining’s property portfolio.
Key Drill Results
A standout intersection of 78.1 metres grading 7.9 grams per tonne (g/t) gold from drill hole HEDD347 has validated the continuity of high-grade zones. Additional notable outcomes, including 26.9 metres at 10.6g/t gold from 425.1 metres, corroborate earlier drill data and point to the reliability of these mineralised zones. These intersections represent a major step toward understanding the geological setting and underscore the project’s capacity to host sizeable gold resources.
Scope of the Drilling Campaign
Drilling has targeted various depths and structural settings, with a particular focus on the Eagle deposit, which lies under the current pit design. Multiple diamond drill rigs have been mobilised to execute infill campaigns, seeking to enhance resource delineation and refine geological models. Results obtained in November included gold grades of up to 12.7g/t over six metres, indicating that high-grade mineralisation can extend at least 100 metres down plunge, with continuity confirmed across more than 1 kilometre. Many of these zones remain open at depth and along strike, prompting further exploration plans.
Support for Definitive Feasibility Study (DFS)
These intercepts provide crucial data for a definitive feasibility study (DFS) and inform technical evaluations regarding pit optimisation and underground mining parameters. The systematic program aims to enhance existing mineral resource estimates (MRE) and identify potential new lodes, particularly in the hanging wall area at Eagle. The emerging geological data are expected to refine target generation and guide future drilling priorities.
Importance for Underground Mining Studies
The delineation of lodes at depth is considered a key milestone in advancing underground mining concepts. Insights gained from drill core analyses are feeding into geotechnical and metallurgical studies. These studies will assist in shaping mining methods, optimising potential production schedules, and advancing cost estimations and project timelines.
Mergers and Acquisitions Context
A recent proposal from Northern Star Resources Limited (ASX:NST) to acquire De Grey Mining has attracted attention from the wider mining community. The robust drill results at Hemi and continued de-risking of the project could strengthen the attractiveness of De Grey Mining’s portfolio. Industry observers, including stakeholders interested in major players such as BHP Group (ASX:BHP), are monitoring the scale of Hemi’s drilling success and the broader implications for Australia’s gold sector.
Significance and Future Prospects
The combination of wide high-grade intercepts, consistent geological continuity, and open-ended mineralisation underscores the potential for a sizeable ore body capable of supporting large-scale mining operations. The focus remains on tightening resource estimates and unlocking additional targets that may add considerable value to the Hemi project. Studies in this emerging gold province continue to reveal new zones of mineralisation, positioning the project as a noteworthy development opportunity within Australia’s mining landscape.
Hemi’s evolving exploration success, reflected in both shallow and deeper targets, confirms a promising outlook for regional gold production scenarios. The ongoing drilling programs aim to expand resource boundaries further and lay the groundwork for long-term project viability. These collective efforts have broadened knowledge of local geology and advanced the case for future resource upgrades, reinforcing the significance of De Grey Mining’s strategic investment in the region.
