De Grey hits big on Pilbara gold, buys 70% of Blue Moon

Rapidly expanding mining company De Grey has secured a significant gold target through its Blue Moon tenement option following the discovery of over 1500 ounces of gold up to a depth of only two metres.

The Blue Moon tenement — part of the Vanmaris option and located west of the Farno-McMahon joint venture in Pilbara — was optioned by De Grey as an expansion prospect, and following positive dig results the company is now bringing out its chequebook.

De Grey will pay $125,000 plus 600,000 shares to the vendor to secure the acquisition, and will also fund exploration for two years. The company is also considering a 70 per cent acquisition of all gold below a depth of six metres for an additional $500,000, with the vendor to retain rights to all gold found above the six-metre depth line.

It is the latest in a sizeable line of recent Pilbara acquisitions for De Grey, whose presence in the Pilbara region extends over 1800 square kilometres and 130km in overall latitude.

Initially, De Grey had estimated 1 million ounces (1Moz) of gold in total for its Pilbara projects, but in September the company increased its estimate to 1.2Moz following successful expansion. This caused the company’s shares to increase by 150 per cent.

Earlier this month, De Grey received a $5 million investment from Canadian explorer Kirkland Lake Gold.

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