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De Grey marketing Hemi to institutions, analysts on site
DE GREY Mining has given hints as to the size of the initial resource at Hemi as it ramps up its marketing of the overall Mallina project by taking key investors to site ahead of the release of the first key valuation metric for the big discovery. MNN reported 1 June 2021

A Mallina gold project site visit presentation deck released to the ASX today reported circa 400,000m had been drilled over the past 16 months, with the company saying it was "on track to achieve targeted resource discovery cost of less than A$20 per ounce at Hemi".

The drilling metreage (and related assumed drill cost), plus De Grey's 5B quarterly cashflow reports since early 2020, suggests a potential maiden resource of 4-5 million ounces if a $15/oz discovery cost number is used for the sake of estimates.

Including the current June period, De Grey has spent more than $70 million over the past six quarters.

De Grey's aim will be to maximise both the initial maiden resource estimate and highlight the exploration and production upside given a development capex number likely to be inflated by the refractory gold processing circuit required.

De Grey started the current quarter with A$87 million cash and was forecasting expenditure of about $15 million.

Shares in De Grey were up 2% to $1.58 in early trade, capitalising the company at $2 billion.

The company's capitalisation has doubled over the past 10 weeks.