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COVER: EXPLORER OF THE YEAR

De Grey continues sharp

trajectory at Hemi

by Dominic Piper

t says plenty for the quality of a project when the exploration was capable of becoming a Top 5 Australian gold producer with
Iteam admits it added 1.6 moz to the resource without even 540,000 ozpa produced over the first decade of production via a
trying. Such is the nature of the Hemi discovery in Western 10 mtpa operation.
Australia’s Pilbara, and the massive opportunity De Grey Mining Jardine said the resource upgrade, PFS and subsequent $150
Ltd still has in front of it. million capital raising meant 2022 was a strong year for De Grey
De Grey – the 2020 Explorer of the Year – only made the but was only a set-up for 2023.
Hemi discovery in late 2019 but has already built an 8.5 moz “We increased confidence in the resource, completed the PFS
gold resource, marking it as the most exciting Australian gold and settled on the process flowsheet. There was lot of project de-
discovery of its generation. risking which went on this year,” he told GMJ in December. “All
Managing director Glenn Jardine said Hemi was the kind of of that set us up for the conversations with shareholders – both
project which just kept on giving. current and prospective – we had in September and October
“In that May resource statement, we added 1.7 moz to the Hemi over the capital raising.”
resource for 8.5 moz,” he said. “That was a particularly strong Some of those discussions took place in North America for the
result as leading into that, the focus wasn’t on resource extension first time, a remarkable fact given how established the De Grey
but increasing confidence.” story has become in Australian investor eyes.
The exploration push delivered on the confidence front as well, Jardine, Tornatora and technical director Andy Beckwith travelled
converting indicated resources from 2.8 moz to 5.8 moz and to the US for the first time in August and found a welcoming and
producing a maiden reserve of 5.1 moz. somewhat new audience.
“Not only was that 1.6 moz overall increase the biggest among “There is increased interest, and with that, the scrutiny has kept
the WA gold sector in the last 12 months, but to put nearly 3 moz lifting but it shows the project keeps improving,” Beckwith said.
into indicated in 12 months is pretty unprecedented,” a clearly “The lightbulb moment came when we presented in Colorado.
delighted general manager exploration Phil Tornatora told GMJ. That is the first time we have presented in North America in
The resource work provided the bedrock for the PFS, released person since the discovery and while there were numerous
in September, which showed Hemi and the wider Mallina project North American investors who followed the story, there were
several that didn’t know it at all. Being able to meet face-to-face
made a difference. And being able to refer to a PFS which was
done to such a high standard was ideal.”
The North American investors could only have been impressed,
not just by Hemi’s obvious quality but also the work De Grey has
done in defining a path to production.
The company immediately launched a DFS after completing the
previous study and is already increasing its capability ahead of
project development.
“We have put in place systems for building organisational
capability – workforce planning, key personnel for pre-
development and development operational readiness,” Jardine
said. “And, we are doing a lot of work around logistics, how and
where we get equipment into the Pilbara, likely. We are really
engaging around that process and engaging with the groups
who are building the plant and doing the mining. That is all well
ahead of the usual schedules.”
The decision to run ahead has been taken in light of tight global
De Grey has rapidly delineated a 10.6 moz gold resource on its
Mallina project in the Pilbara

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