De Grey Mining is making significant strides in solidifying its Hemi project, cementing its position as a lucrative gold asset in Western Australia’s Pilbara region. In an exciting development, the company has recently announced a substantial upgrade in the mineral resource of the Hemi deposit, which forms part of the larger Mallina gold project.
The Hemi deposit’s mineral resource estimate (MRE) has impressively grown by an additional million ounces (Moz) to reach a whopping 10.5Moz. This remarkable growth is the result of eight months of intensive drilling conducted since the release of Hemi’s MRE in June 2023.
By targeting new gold discoveries near the surface and aiming for large-scale resource expansions, De Grey aims to extend the mine’s lifespan and boost annual production rates from both open pit and underground sources. This strategy has already yielded fruitful results, with resource increases of 0.81Moz at Eagle and 0.14Moz at Diucon.
De Grey’s General Manager of Exploration, Phil Tornatora, expressed his enthusiasm for Hemi’s stellar performance, stating, “It is remarkable to witness Hemi surpassing the 10Moz mark in less than four years since its discovery.” Tornatora further added, “The Hemi deposits, including Eagle and Diucon, still exhibit significant potential for further resource increases as they remain open along strike and at depth.”
Notably, De Grey released its Hemi DFS (Definitive Feasibility Study) in September, highlighting a gold project characterized by low capital intensity and a short payback period of approximately 1.8 years. The company aims to achieve a production target of 553,000oz of gold in Hemi’s inaugural year, with peak production aiming to reach 570,000oz in the second year, followed by seven years of sustained production around the 530,000oz mark.
Despite a 28% increase in the Hemi capital cost estimate since the 2022 pre-feasibility study, bringing it to $1.345 billion, De Grey assures investors that this adjustment aligns with the budgetary changes observed in other resource projects across Australia over the past year and a half.
With its remarkable exploration results, cost-efficiency, and ambitious production targets, De Grey Mining’s Hemi project is poised to become one of the premier gold assets in the Pilbara region, offering ample opportunities for investors and contributing to the growth of Australia’s mining industry.
Frequently Asked Questions (FAQ)
1. What is the Hemi deposit?
The Hemi deposit is a significant gold resource located within the larger Mallina gold project in the Pilbara region of Western Australia. It has shown remarkable growth potential and has recently experienced a substantial upgrade in its mineral resource estimate.
2. How much has the mineral resource estimate of the Hemi deposit increased by?
The mineral resource estimate of the Hemi deposit has increased by an additional one million ounces (Moz), bringing it to a total of 10.5Moz.
3. What are De Grey Mining’s goals for the Hemi project?
De Grey Mining aims to discover new near-surface gold deposits and expand the existing resources at Hemi through large-scale drilling programs. The company intends to extend the mine’s lifespan and increase annual production rates from both open pit and underground sources.
4. How does De Grey Mining plan to achieve its production targets?
De Grey Mining plans to produce 553,000oz of gold in Hemi’s first year of operation, with peak production set to reach 570,000oz in the second year. The company aims to sustain production at around 530,000oz for an additional seven years. These targets will be achieved through efficient mining operations and a focus on resource expansion.
5. Has there been an increase in the capital cost estimate for the Hemi project?
Yes, the capital cost estimate for the Hemi project has increased by 28% since the 2022 pre-feasibility study, reaching $1.345 billion. De Grey Mining states that this increase is in line with budget changes observed in other resource projects across Australia in recent months.