ONE of last year’s disappointing floats, De Grey Mining, is rising from the ashes on some interesting exploration results.
Despite boasting some respected prospecting names, and chasing two metals for which there is always a market, De Grey had fallen 40 per cent from its 20-cent IPO price by mid-December last year, only to plummet much further this year.
However, since last month, the gold and platinum explorer has made some steady gains on the back of its June quarter report and further testing results.
The Three Kings platinum and Turner River gold prospects within De Grey’s Indee project, near Port Hedland, are looking increasingly commercial.
Preliminary testing of the platinum has indicated it will be amenable to standard processing, and mineralisation has been shown to extend further than previously recognised.
Significant copper-nickel sulphide occurrences within Three Kings, which De Grey says suggest possible massive deposits could add value to this project.
Meanwhile, within Turner River the strike length has been extended to at least 10 kilometres.
Australia does not yet mine platinum – although Platinum Australia is the most advanced in planning to do this, near Halls Creek – and relative market indifference reflects this fact.
De Grey acknowledges this, even though the metal is successfully mined in Canada and South Africa, and world demand is exceeding supply.
“Australia has not yet come to realise the full implications of a platinum discovery,” De Grey managing director Denis O’Meara said.
“Platinum projects attract more international attention.”
During the September quarter, De Grey is hoping to be able to define more clearly the possible implications of its find, with interpretation of drilling results and aeromagnetics, and some drilling of recently identified targets, Mr O’Meara said.
De Grey believes the Indee platinum could prove commercial within two years, and one onlooker has described it as “most likely the most significant platinum discovery in Australia in 20 years”.
With regards to the nickel outcrop, Mr O’Meara would only divulge De Grey would “consider all aspects regarding possible joint ventures”.
Thus far De Grey has kept all its field work in-house, with the assistance of consulting geologist Geoffrey Blackburn and chairman Ron Manners.
Campbell Ansell and Michael Baker are also on the board as non-executive directors.
De Grey, which was named Australia Mining Handbook 2003 Explorer of the Year, has most recently traded at around 13 cents.
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