De Grey to ramp up Pilbara gold exploration with fresh funding

Aircore drilling at Hemi, with RC rig in background. Image: De Grey Mining

Gold aspirant De Grey Mining has raised $31.2 million from share placements, with intentions to use the funding for ongoing exploration at the Mallina gold project in the Pilbara, Western Australia.

De Grey offered 111.43 million shares at 28 cents per share, a discount of 12.5 per cent on the company’s last closing price.

On February 6, De Grey announced high-grade results from its reverse circulation (RC) drilling at the Hemi deposit. The company’s shares then jumped 46 per cent to as much as 27 cents as a result.

A highlight was a 93-metre continuous gold zone from 39 metres that assayed at 3.3 grams per tonne, including 21 metres at 4.7 grams per tonne, at the Brolga Zone.

De Grey executive chairman Simon Lill said the company had since been “flooded” with offers to assist in a capital raising or direct investment.

“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina gold project and to that end I would like to congratulate and thank the technical and support staff who have been part of making this possible,” Lill said.

“The recent Hemi discovery also highlights the outstanding exploration potential De Grey has across our tenements, with the market also now giving recognition to our existing 2.2 million ounces of resources.”

Lill said proceeds from the offer would fund the company’s ongoing exploration with a priority on the Hemi gold discovery in the Pilbara region and associated targets, as well as certain early-stage development initiatives.

The funds raised will also support the recommencement of regional drilling programs targeting the other four intrusion targets at Scooby, Antwerp, Alectroenas and Shaggy, along the highly prospective structural corridor.

De Grey anticipates an initial maiden Hemi resource will be announced in the second half of the year.

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