The De Grey Mining Limited (ASX: DEG) share price is slipping, down 3.57% at the time of writing.
Shares are sliding today despite a positive announcement from the Western Australia gold explorer and developer released to the ASX this morning.
Let's take a closer look at what this announcement means for the De Grey share price.
What did De Grey Mining report on its gold projects?
This morning, De Grey Mining released an update of its gold exploration activities at the Greater Hemi Intrusion targets. This area encompasses the Hemi Gold Discovery, south of Port Hedland in Western Australia.
The company is targeting various sites including Scooby to the east and Antwerp, Alectroenas, and Shaggy to the west of Hemi. De Grey is using aircore drilling, geophysical, and geochemical techniques to identify mineralised intrusions. Between January 2020 and early February 2021, it has drilled 2,135 aircore holes totalling 140,532 metres.
In the latest results, De Grey reported aircore drilling had defined a 2 kilometre by 1 kilometre gold-arsenic zone. The results also reported a coincident Induced Polarisation (IP) target at Scooby, with significant new gold intercepts. A 2km x 1km gold-arsenic zone was also defined in aircore drilling at its Antwerp location.
Quartz veined and altered intrusions were also intersected here in limited shallow RC (reverse circulation) drilling. The company cited the potential for Antwerp to link with its recently discovered Eagle zone.
De Grey now plans to conduct IP surveys at Antwerp, Diucon, and Eagle.
Comments from De Grey
Addressing the drill results, De Grey's Technical Director, Andy Beckwith said:
Recent exploration activities at Scooby and Antwerp have identified widespread gold mineralisation in aircore drilling warranting follow-up RC drilling. This drilling will commence in the near future in parallel with resource delineation and extension drilling at Hemi, including at the recently discovered Diucon and Eagle zones.
The new IP target coincident with gold and arsenic mineralisation at Scooby are encouraging. The IP results potentially provide a new tool to identify and priorities targets beneath the transported cover. Diucon, Eager and Antwerp will be our next priority IP areas.
De Grey Mining share price snapshot
The De Grey Mining share price was a star performer in 2020, gaining 1,920% in the calendar year. That compares to a flat (down 0.1%) return from the broader All Ordinaries Index (ASX: XAO).
This year, the Western Australian gold explorer has trailed the index returns. With today's 1% loss taken aboard, the De Grey share price is down 12.6% in 2021.
