De Grey derisks Hemi with new mining lease

Gold explorer De Grey Mining (ASX:DEG) has secured a mining lease for its Hemi Gold Project in Western Australia from the Department of Mines, Industry Regulation and Safety (DMIRS). 

The $2.06 billion market capitalisation company says this newly granted mining lease (M47/1628) has been granted for an initial term of 21 years and covers the Hemi deposits, proposed mining area, and processing plant site.  

De Grey states this is an ‘important’ milestone for the company, and the new lease de-risks the project on the path towards development and production. 

However, the granting of this lease still does not allow for the start of development at Hemi, which remains subject to statutory, including environmental, approvals.  

Environment Protection and Biodiversity Conservation (EPBC) (Federal) and Environmental Protection Agency (EPA) (State) submissions were made in May and June 2023, respectively, to the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) and State EPA. 

De Grey also notes mining leases have to date been granted over 6 of the 7 regional deposits, including Wingina, Amanda, Mt Berghaus, Calvert, Withnell, and Mallina, and cover all of the company’s 9.5-million-ounce (Moz) Hemi Mineral Resource Estimate (MRE). 

The new mining leases also cover about 95% of De Grey’s global mineral resource of 11.7 million ounces.

Speaking on the new mining leases, De Grey Managing Director Glenn Jardine says: “The grant of the Hemi Mining Lease is another significant milestone for De Grey and further demonstrates the company’s systematic approach to de-risking the Hemi Gold Project. 

For De Grey shareholders and potential financiers, this is a critical approval on the pathway to bringing Hemi into production. 

We are committed to ensuring the project creates sustainable long-term benefits to stakeholders and look forward to updating our investors with the outcomes of the Definitive Feasibility Study for Hemi in the coming weeks.”

We are committed to ensuring the project creates sustainable long-term benefits to stakeholders and look forward to updating our investors with the outcomes of the Definitive Feasibility Study for Hemi in the coming weeks

The company also notes this announcement comes following the previous signing of a mining agreement with the Kariyarra People in December 2022. 

De Grey Mining is an ASX-listed explorer growing one of Australia’s new gold discoveries at Hemi within its Mallina Gold project. 

The project is situated close to the township of Port Hedland within the Pilbara region of Western Australia. 

De Grey Mining had $112.705 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.

Write to Adam Drought at Mining.com.au

Images: De Grey Mining
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.