De Grey Mining Unveils Exceptional Drilling Results Boosting Hemi’s Underground Potential
De Grey Mining reports outstanding infill drilling results at the Eagle deposit within the Hemi Gold Project, highlighting significant mineralisation extensions and reinforcing the case for future underground mining development.
- Outstanding drill intercept of 78.1m @ 7.9g/t Au at Eagle deposit
- Mineralisation extended over 1km down plunge and remains open
- New results support upside to Hemi DFS production metrics
- Potential for underground mining enhanced by recent conceptual study
- Further drilling and studies planned to refine resource and mining plans
Exceptional Drilling Results at Eagle Deposit
De Grey Mining Ltd (ASX: DEG) has announced a series of exceptional diamond drilling results from the Eagle deposit, part of its flagship Hemi Gold Project in Western Australia. The latest infill drilling beneath the Definitive Feasibility Study (DFS) pit design has delivered impressive intercepts, including a standout 78.1 metres grading 7.9 grams per tonne (g/t) gold from 457 metres depth. This intercept features high-grade zones such as 10.1m @ 30.1g/t Au, underscoring the deposit’s robust mineralisation.
These results build on previously reported high-grade intersections and confirm the continuity of mineralisation over a down-plunge extent exceeding 1 kilometre, with the system remaining open at depth and along strike. Notably, new mineralisation has also been identified in hanging wall positions, suggesting additional lodes may be developing adjacent to the main Eagle zone.
Implications for Hemi DFS and Underground Mining Potential
The recent drilling outcomes augment the November 2024 Mineral Resource Estimate (MRE) update, which itself increased the Eagle resource below 390 metres by 159,000 ounces of gold. These findings provide tangible upside to the production metrics outlined in the Hemi DFS released in September 2023. The enhanced resource confidence and grade continuity support the ongoing evaluation of underground mining scenarios.
De Grey’s December 2024 Hemi Underground Mining Conceptual Study had already presented a compelling case for underground development beneath the Eagle and Diucon open pits, estimating contained gold of 355,000 ounces and 460,000 ounces respectively within the 2023 MRE. The new drilling results reinforce this potential, indicating that underground mining could be a significant component of the project’s future production profile, potentially running in parallel with open pit operations.
Strategic Next Steps and Market Outlook
De Grey plans to resume diamond drilling at Eagle in the first quarter of 2025 to complete the current program and fill remaining gaps. Additional metallurgical, geotechnical, and hydrological studies aimed at advancing the underground mining concept to a Scoping Study level are also planned. These efforts will be critical to refining the mine plan and underpinning a future Definitive Feasibility Study and investment decision.
General Manager Exploration Phil Tornatora highlighted the significance of the results, stating that the mineralisation remains open and that the program supports the upside potential at Hemi. The company’s methodical approach to infill drilling and resource modelling is designed to enhance confidence in the resource base and unlock value for shareholders.
With the Hemi Gold Project representing a large-scale mineralised system extending over 6.5 kilometres strike and with substantial gold endowment per vertical metre, De Grey’s latest results position the company well to capitalise on both open pit and underground mining opportunities in the near to medium term.
Bottom Line?
De Grey’s Eagle drilling success sets the stage for a pivotal expansion of Hemi’s underground mining prospects.
Questions in the middle?
- How will the new drilling results impact the timing and scale of the underground mining development?
- What are the expected capital and operating cost implications of integrating underground mining with open pit operations?
- How might updated resource models influence De Grey’s production guidance and project valuation?
