The De Grey Mining Ltd (ASX: DEG) share price is climbing today after the company announced it's uncovered a major gold intersection.
At the time of writing, the gold and mineral exploration company's shares are up 3.89% to 93.5 cents.
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What's driving De Grey shares higher on Monday?
Investors are buying up De Grey shares following its latest results obtained from the Diucon prospect at Hemi in Western Australia.
According to the company's announcement, De Grey advised it has intersected gold mineralisation from the resource step out drill hole HEDD128.
The results reported that HEDD128 intersected 359.4 metres at 1.2g/t of gold (Au) from 530 metres. This included:
- 97.1 metres at 2.6g/t Au from 580.92 metres
- 44.8 metres at 1.4g/t Au from 762.46 metres
- 67.4 metres at 1.0g/t Au from 861.74 metres
De Grey stated this represents a significant upside to the Mineral Resource Estimate (MRE) that's been used for the prefeasibility study (PFS).
It also noted that there is potential to extend mineralisation along strike and down plunge to the southwest of Hemi. This could lead to the discovery of significant zones of hidden intrusion-hosted mineralisation where there's an abundance of near-surface gold.
De Grey general manager of exploration Phil Tornatora said:
This new intercept has something for everyone; 200 metre depth extension to the May Resource, intrusion true width increasing to approximately 300 metres, open at depth and down plunge, with increased large scale open pit, large scale underground and selective high grade underground mining potential.
De Grey share price snapshot
Since April 2022, the De Grey share price has fallen on hard times amid a backdrop of deteriorating gold prices.
Its shares are down 35% from their recent high of $1.385 on 19 April.
Just last month, De Grey shares hit a 52-week low of 72.5 cents before volatility on the market began to settle.
De Grey commands a market capitalisation of about $1.34 billion.
