Finance

Why De Grey Mining Limited (DEG) shares jumped 20% today

The De Grey Mining Limited (ASX:DEG) share price was trading 20% higher today following the release of an investor presentation and mining update this week

For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 7135.4, up 0.45%.

About De Grey Mining Limited

De Grey Mining is a West Australian mining company which owns the Pilbara Gold Project, located in-land from Port Hedland. The project expands to an area around 150 kilometres, or 1,500km squared. De Grey owns 100% of its tenements in the Mallina, Mt Berghaus, Withnell, Toweranna and Wingina regions.

De Grey Mining Limited’s investor presentation & drilling update

Amongst its statements made this week, De Grey released a report showing additional “thick and high-grade gold mineralisation” at its Hemi prospect.

De Grey’s technical director, Andy Beckwith, said, “Clearly, drilling below this zone and the mineralisation on Section B are two key high priority RC targets.”

“We are looking forward to receiving the remaining aircore drilling results and re-commencing drilling activities now the cyclone has dissipated.”

The drilling at Section A of the prospect showed grades ranging from 5.1 grams per tonne of ore/dirt milled to 6.6 grams per tonne.

For context, the World Gold Council says high-quality underground mines, which tend to be more fruitful than above-ground mines, have a gold density of 8 to 10 grams per tonne. Low-quality grades would be between 1 and 4 grams per tonne.

What Happens Next?

De Grey Mining Limited shares were last seen trading at $0.21. The company is a ‘small-cap’ by all definitions, since it is priced by the financial market at less than $250 million in market capitalisation.

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