De Grey Mining (ASX:DEG) has increased the Hemi discovery mineral resource estimate by 700,000 ounces to 264 million tonnes at 1.3 grams per tonne gold for 11.2 million ounces of contained gold.
The $3.28 billion market capitalisation company reports Hemi’s resource has grown at the rate of 1.3 million ounces per year since the maiden MRE of 6.8 million ounces in June 2021.
General Manager of Exploration Phil Tornatora says deeper drilling at Aquila-Crow has added to the recent MRE and demonstrates grades and continuity with the potential for underground mining.
“Deeper drilling confirms that mineralisation continues at depth in all the Hemi deposits, which remain open below the current mineral resource and open pit mine designs,” Tornatora says.
A concept study into Hemi’s underground mining, based on the 2023 MRE, is currently being finalised.
Tornatora adds that Brolga’s recent intercepts, which confirmed quality and continuity of the orebody, has enabled reporting a portion of measured resources within the Brolga starter pit corresponding with the first 12 months of mining at Hemi.
“Our ongoing exploration is targeting strike and depth extensions to the Hemi deposits, new shallow potential resources adjacent to Hemi, as well as new large-scale discoveries at regional prospects, including the Egina and Farno joint venture areas with Novo Resources (ASX:NVO).”
De Grey says that drilling programs at Hemi have uncovered opportunities to increase the mine life and annual gold production rate from open pit and underground sources.
The company adds exploration activities are ongoing, with the aim at increasing resources and making new discoveries across existing deposits and new target areas.
De Grey Mining is a Western Australian explorer and developer focused primarily on the Hemi Gold Project which is a large gold mineralised system under five years old, and is located southwest of Port Hedland in the northern Pilbara region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: De Grey Mining
