De Grey grows Hemi gold

De Grey Mining has increased resource estimates for the Mallina gold project and its contained Hemi deposit to 10.6 million ounces, boosting its credentials as a major undeveloped gold deposit.

The company posted an updated mineral resource estimate for the Pilbara situated project and its contained tenements this morning.

Its appraisal for Hemi – which De Grey says is the largest undeveloped open pit gold deposit in Australia – has increased by 25 per cent from approximately 6.8 million ounces to 8.5 million ounces.

That falls within a broader 10.6 million ounces from a previously estimated 9 million ounces MRE for the broader Mallina project.

Approximately 6.9 million ounces of this estimate falls within the measured and indicated category, with Hemi contributing 5.8 million ounces.

The update is supported by 12 month's worth of drilling, with the exploration campaign still underway and planned to continue for another year. 

De Grey raised $125 million to fund the effort in October 2021, taking its total capital raised for the project to roughly $275 million in the last three years. 

De Grey technical director Andy Beckwith said the upgrade provided an increased basline for the ongoing prefeasibility study. 

“Hemi continues to grow and is now Australia’s largest undeveloped open pit gold deposit," Mr Beckwith said in a statement. 

"The exploration focus over the next 12 months and beyond will now pivot back to resource growth through along strike and down dip extensions at Hemi and the high priority untested targets within the Greater Hemi region and large regional tenement package.”

A prefeasibility study is set to be completed in the coming September quarter, according to the company's managing director Glenn Jardine. 

"Project studies, including metallurgy, geotechnical, mining, environmental, infrastructure and hydrogeology have continued in parallel with the resource extension and definition drilling," Mr Jardine said. 

"The increase in Indicated resources and completion of the PFS are expected to provide a strong basis for project development and financing."

De Grey shares were up 3.24 per cent at 1:33 pm AEST to trade at $1.12.