Page 30 - gmj147-Apr-Jun-mag-web-neat
P. 30

AUSTRALIAN GOLD REVIEW




           Steady Hemi prepares for big year





                                                    by Dominic Piper


             he headline-grabbing announcements of 2020 and 2021   The drilling only reinforced De Grey’s decision to select Brolga
          Tmay  have  subsided  for  now  but  there  is  no  doubt  the   for Hemi’s Stage 1 starter pit.
          momentum on the ground is still strong for De Grey Mining Ltd.  “We have stated for a while that Brolga would be the first pit off
          De Grey shot to prominence in early 2020 with the discovery   the rank, so we are drilling to confirm that,” Jardine said. “We
          of its Hemi deposit on the wider Mallina project in the Pilbara,   have also completed some pilot scale met work on Brolga which
          Western Australia. By June 2021, the company was unfurling a   we will release in the next few weeks.”
          6.8 moz maiden resource and followed up with a scoping study   As well as the infill work, the forest of rigs at Hemi are also
          in October which pointed to 500,000 ozpa production over an   providing  geotechnical  and  metallurgical  samples  for  work
          initial 12 years.                                    ahead.
          Those numbers immediately sparked a PFS, and De Grey has   “We need to get that work done now so we can complete the
          spent the subsequent six months laying the groundwork for that   studies  in  the  second  half  of  the  year.  Then,  from  the  next
          study.                                               quarter, we can pivot back to more extensional and discovery
          “We’re in the PFS phase and there is obviously a lot of study   drilling,” Jardine said.
          work associated with that, so not always exciting numbers,” De   Metallurgy loomed as a potential hurdle early in Hemi’s life with
          Grey managing director Glenn Jardine explained to GMJ. “We   the refractory nature of the ore causing consternation among
          are doing a lot of infill and resource definition work, aimed at   some  investors.  De  Grey  has  invested  heavily  in  testing  to
          increasing the amount of indicated resources for the PFS and   assuage  any  fears,  Jardine  saying  the  lab  work  had  shown
          production target and some resource extension work around   there was little to be worried about.
          the Duicon and Eagle deposits.
                                                               “The met drilling is really about continuing to get more samples,”
          “We have been quite clear where the drilling targets are in terms   he said. “The mineralogy is consistent across the deposits so
          of increasing the indicated resource and the production targets.   it is more about proving greater confidence in ourselves and
          We had to focus on that in the last 6-9 months to set ourselves   showing the market that we have done all the technical work
          up to do all the work on various studies after that.”  required for this size of project.
          It may not be exciting but recent drilling continues to deliver for   “We are getting consistent recoveries in the mid-90% range.
          De Grey.                                             In the PFS it is more about doing the trade-off studies on the
          In March, results from resource definition drilling at the Brolga   communition and oxidation processes we use. That is important
          zone returned hits of 193m @ 1.7 g/t, 123m @ 1.9 g/t, 140.2m   for investors, and we are hopeful of advancing which oxidation
          @ 1.3 g/t and 136m @ 1.2 g/t, demonstrating the continuity of   process we will use ahead of the PFS, providing the market
          mineralisation across the 1.3 moz @ 1.3 g/t orebody defined in   more certainty.”
          the scoping study.                                   Other than great mine life and production profile, the company































                                                         Page 30
   25   26   27   28   29   30   31   32   33   34   35