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NEWS

embark on probably the most expensive single-asset junior
exploration programme in Australian gold history.
De Grey has pledged to spend $83 million on defining the
anticipated Tier 1 resource and testing other priority targets
around Hemi.
“From there, we can begin to demonstrate the upside outside
of the greater Hemi area [the company has more than 150km
of prospective belt] and set up a regional exploration group,”
Jardine said. “To realise that potential beyond the greater Hemi
project requires us to set up the organisation and the systems
and support needed on site to get there.”
Setting the structural environment may be one of De Grey’s
largest challenges. Such is the rapid growth of the company –
its value has increased 3,000% since the start of February and
is now close to the $2 billion mark – it has quickly outgrown
even its most ambitious projections. Much of Jardine’s focus
has been on ensuring the project doesn’t outgrow the company After raising $100 million in September, De Grey is now planning
and vice versa. an $83 million exploration push at Hemi
“We are building an organisation that is totally focused on
maximising the accretive value for shareholders,” he said. “We deposit and we’ll work it all out,” Beckwith said. “We still need
have done a lot of research into the most value-additive ways to do a lot of testwork which we have started but at this scale
of proceeding with Hemi and the most value will be derived processing refractory ore is not an issue because the orebody
by us taking this through to production ourselves. We have is large and near-surface with a low strip ratio and a higher
done a lot of scenario planning internally so that is clear to the ounce per vertical metre than average projects.”
board, management and major shareholders. De Grey will Jardine said early met work on the Brolga zone had indicated
continue to deliver what we say we will, and we are building the high recoveries (96%) from refractory ore using flotation
organisational capability to do it.” pressure oxidation and CIL.
Keeping value within the company will necessitate a dual “That is before we have even begun optimising the met,” he
development strategy, made up of project development and said. “We are going to assess other processes as well such as
ongoing exploration, according to Jardine. Albion and BIOX and will test each zone to come up with an
“We will continue exploration to increase the resource growth overall optimal flowsheet.”
and demonstrate the Tier 1 production potential in less than 12 Giving the company further insurance against any metallurgical
months,” he said. “But at the same time, we will continue with hurdles is its location within an hour’s drive of Port Hedland.
exploration at a more regional level.”
“The capex will not be the driver of economics on this
While the exploration strategy is clearly defined, project project,” Beckwith said. “It is not only the scale but also the
development studies are still in their infancy. Early metallurgical infrastructure advantages we have around us which will offset
work has indicated the Hemi deposits are refractory, a potential any hydrometallurgy costs.
roadblock to economic development in some projects.
“We are close to Port Hedland so have roads, power, gas
However, Beckwith and Jardine have seen little to concern
and water on our doorstep. That is an additional advantage
them in the results so far.
some of the other recent major discoveries in WA didn’t have,
“I’m struggling to see any hurdles now, the reality is this is a big particularly when it comes to access, logistics and capex.”

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