The De Grey (ASX:DEG) share price is soaring today. Here's why

What strong drilling results mean for this Aussie gold miner…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The De Grey Mining Limited (ASX: DEG) share price has jumped 6.7% higher on Thursday. This comes after a positive update from the Aussie gold miner.

At the time of writing, De Grey shares are changing hands for $1.19.

Close-up of a smiling man holding a jar containing nuggets of gold.

Image source: Getty Images

What did De Grey announce?

De Grey provided an update to the market on "compelling new results" which seems to have investors excited.

The Aussie miner said recent results have "clear potential" to increase its 6.8 million ounce (Moz) Hemi resource in Western Australia.

De Grey managing director Glenn Jardine was bullish on the updated drilling results. He said: "The new drilling results at Diucon provide clear evidence that increases to the current Hemi resource can be expected with further drilling."

He added: "The higher grade zones within these broad gold zones are also encouraging, as we continue to extend mineralisation to the west and conduct closer spaced drilling within the existing resource footprint."

Extensional results on section 28720E and 28880E indicate a significant resource at De Grey's Diucon deposit. That includes 173.7 metres at 1.5 grams per tonne of gold from 271.3 metres. That is 80 metres below the current resource.

That's good news given the depth and width that could be available to mine from the key deposit.

Today's release said the results show "clear potential to grow and upgrade" the current inferred mineral resource estimate. The ability to quickly and efficiently mine these resources is key to growing profitability for De Grey.

Foolish takeaway

The De Grey share price has been on fire in today's trade. Shares in the Aussie gold miner have soared thanks to high-grade drilling results indicating a greater than anticipated Hemi resource in Western Australia.

The De Grey share price is up 54% in the last 12 months but remains up just 6% in 2021.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Kingsgate, Neuren, Newcrest, and Pushpay shares are rising today

These ASX shares are avoiding the market selloff on Tuesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Neuren, Northern Star, Race Oncology, and Westgold shares are storming higher

These ASX shares are starting the week in a positive fashion.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Share Gainers

Why APM, Macquarie Telecom, Northern Star, and Origin shares are rising today

These ASX shares are having a strong session despite the market selloff.

Read more »

Two boys with cardboard rockets strapped to their backs, indicating two ASX companies with rocketing share prices
Share Gainers

Catch these fast-rising 2 ASX shares before it's too late: Celeste

This pair of stocks rocketed up in February during reporting season, but are still great value for those willing to…

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Gainers

Why Arafura, Myer, Volpara, and Xero shares are zooming higher

These ASX shares are making their shareholders smile on Thursday.

Read more »

medical asx share price represented by doctor giving thumbs up
Healthcare Shares

Guess which ASX biotech stock just rocketed 29% on big FDA news

The ASX healthcare share is attracting investor interest following FDA approval for its targeted cancer therapy compound.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Mesoblast, PolyNovo, Pushpay, and Weebit Nano shares are charging higher

These ASX shares are having a strong session despite the market selloff.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why InvoCare, Pentanet, Sayona Mining, and Weebit Nano shares are storming higher

These ASX shares are having a strong session on Tuesday.

Read more »