Ann: 6.8Moz Hemi Maiden Mineral Resource drives MGP to 9.0Moz, page-148

De Grey's maiden Hemi gold estimate ahead of analyst expectations
DE GREY Mining’s Hemi discovery in Western Australia contains nearly seven million ounces according to the company’s maiden estimate, with a potential “tier one” production scenario to emerge next quarter following completion of scoping work. (extracted from MiningNews.net)

The 192 million tonnes grading 1.1 grams per tonne gold for 6.8 million ounces includes 66Mt at 1.3gpt for 2.8Moz in the "indicated" category.

Various analyst estimates for the maiden Hemi estimate were broadly around the 4-5Moz mark.
De Grey's total resource inventory at the overall Mallina gold project now totals 9Moz - given the historical 2.2Moz estimated prior to the Hemi discovery - including total measured and indicated resources of 85Mt at 1.4gpt for 3.8Moz.

The overall resource equates to an enterprise value per ounce of about $175/oz.

That compares to broad ASX-peer Bellevue Gold's circa $225/oz, with Bellevue's namesake proposed underground mining project having much higher grades - albeit Hemi will be an open cut mining venture.

De Grey technical director Andy Beckwith pointed to the "amazing endowment" of the anticipated open cut Hemi project - put at "over 25,000oz per vertical metre in the shallow, better drilled portions of the mineral resource" - and the robustness of the resource estimate.

The latter is seen by ounces only decreasing by 17% when the cut-off grade is increased from 0.3gpt to 0.7gpt - while grade jumps by 36% at the same time to 1.5gpt.

De Grey's resources at Hemi are overlaid by 30-40m of barren cover.

The overall "finding cost" is put at about $8.50/oz - verus what De Grey says is the industry average of about $20/oz.

The resource estimate followed 15 months of drilling comprising 688 RC holes and 169 diamond core holes.

A dozen rigs are continuing to drill De Grey's ground, with the company optimistic of "finding additional ounces for many years to come".