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COVER

Millions of shades

of De Grey

In a year of unpredictability, volatility and much anxiety, there was one certainty;
De Grey Mining Ltd would be GMJ’s Explorer of the Year in 2020.

by Mark Andrews

s I said to Simon Lill in March, ‘I like it; it is large and growing At the time of print, De Grey had a market cap of $1.4 billion,
Aand commercial… just like me’,” Paul Carter, institutional share price of $1.12c/share and $109.5 million cash ahead of a
sales, Morgans, said when summing up why De Grey’s Hemi maiden resource estimate in the first half of this year.
discovery in Western Australia’s Pilbara was a standout among There is firm belief in mining circles that Hemi could deliver
a new generation of projects. anywhere between 3-5 moz gold straight up.
The potential Carter started to realise in Hemi back in March From there, mine development within 3-5 years is a real
was already well-known internally at De Grey and a point made possibility from the intrusion-hosted gold mineralisation – not
known by the company’s non-executive chairman – Lill – when encountered in the Pilbara before – at Hemi.
accepting the award for Best Emerging Company at Diggers &
Despite the new style of gold mineralisation and the potential
Dealers in October.
size and scale of Hemi, conjuring support to develop the project
Lill took aim at those who dropped off the De Grey story and appears hefty.
happily delivered a “look at us now” moment during his speech
“The capex isn’t a key sensitivity in the context of a potential
at the Diggers gala dinner.
plus-300,000 ozpa, long life gold project,” Cannacord Genuity
The floor is now all De Grey’s, with few doubters left to convince Inc. mining analyst Tim McCormack said.
that the company’s Mallina gold project – underpinned by Hemi,
“They certainly have the biggest land package covering the most
comprised of the Aquila, Brolga, Crow and Brolga South zones
prospective rocks in the region.”
– has massive potential.
Excluding Hemi, De Grey has already outlined a 2.2 moz gold
Another zone – Falcon 31m @ 3.3 g/t gold from 101m and 32m
resource – 37.4mt @ 1.8 g/t – across a landholding of 1,200sq
@ 2.4 g/t from 43m (recent intersections) – was identified in
km south of Port Hedland, with known deposits still open.
September 2020, south of Aquila and west of Brolga.
Testing of regional targets across De Grey’s package will start
It was highlighted in De Grey’s AGM that since the announcement
this year.
of the Hemi discovery in the last month of 2019, the company
“De Grey [Hemi] appears to be economic, notwithstanding the
had raised $131 million, engaged eight drill rigs for programmes
refractory nature, and it is going to be a mine,” Regis Resources
totalling 250km all the while rewarding shareholders handsomely
Ltd non-executive director Lynda Burnett said.
with a 2,700% share price increase from the period December
17, 2019 to December 3, 2020. “It is in the 5 moz gold range and will probably get taken out by

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