- The company's Pilbara assets include both conglomerate and structural gold, putting it on the Pilbara Gold Rush follow list.
- Defined gold resources sit in the structural category and have been progressively increased to rest at 1.7 million ounces.
- The company has a 2 million ounce target in mine for Pilbara project, with a 3 million ounce horizon set for future years.
- De Grey continues to explore and is going deeper at some deposits.
- It has a steady news flow and is keenly watched by investors
Mallina drilling results have culminated in an escalation of our follow-up drilling plans (and) we continue to await many results over our two other priority areas Withnell and Toweranna and expect to provide updates during November.
De Grey Mining executive technical director Andy Beckwith, November 11, 2019
What does De Grey do?
De Grey Mining Limited (ASX:DEG) specialises in gold exploration in the prospective Pilbara region of Western Australia. It is run by an executive team that includes executive chairman Simon Lill and executive technical director Andy Beckwith.
Lill is a corporate adviser with more than 26 years’ experience in stockbroking, capital raising, management, business development and analysis for resource industry and manufacturing companies.
Beckwith is a geologist with more than 31 years’ geological and management experience. As managing director of Westgold Resources Ltd (ASX:WGX) (FRA:0W2) (OTCMKTS:WTGRF) he built up the company’s inventory to about 5 million ounces of resources and previously held senior roles with AngloGold Ashanti Limited (ASX:AGG) (NYSE:AU) (JSE:ANG) (FRA:AOD1) in Australia.
WA company De Grey is backed by Northwest Nonferrous Australia Mining Pty Ltd, which came on board as a major shareholder in the Subiaco company in August 2019 after the WA junior completed its Indee Gold Pty Ltd acquisition and brought ground in-house.
What does De Grey own?
A mineralised shear zone at the project extends more than 200 kilometres.
De Grey produced a scoping study for the project in 2017 and increased the size of a plant in its development study to a 2 million tonnes per annum (Mtpa) throughput in the March 2019 financial quarter.
The upgraded capacity was put down to an increase in resources, exploration successes, material increases in gold recoveries to between 90% and 94%, and a simplified processing plant flowsheet.
De Grey's scoping study had suggested average annual production would be nearly 60,000 ounces.
The company has been working towards achieving a 2 million ounce target, confident its Withnell and Toweranna deposits at the project can help it achieve its vision.
It has been actively drilling in its latest campaign with its goal in mind since August 2019.
Toweranna’s JORC resource is 356,600 ounces grading 2.1 g/t gold and extends from surface to 200 metres below ground.
De Grey Mining has been drilling gold below the JORC resource at Toweranna.
Mallina deposit is another site for drilling in the campaign and has a resource of 160,700 ounces grading 1.3 g/t.
De Grey Mining expanded Mallina drilling in November 2019 after continued significant gold hits at the deposit.
A 3 million ounce horizon is an eventual vision for the company working progressively to improve shareholder value while targeting a low per-ounce discovery cost.
Resource upgrades for the flagship Pilbara project
Nearby success from structural and conglomerate gold explorers and developers
Significant regional transactions related to conglomerate gold mineralisation
Capital raisings and feasibility study progress
Strategic partnerships and mergers & acquisitions
Gold sector sentiment
De Grey Mining will hold its annual general meeting in Western Australia on November 19, 2019 at Quest Kings Park, 54 Kings Park Road, West Perth at 11am WA time (2pm ESDT).