De Grey Mining continues to solidify its Hemi project, set to be the next big gold asset in the Pilbara region of WA.
The company has announced an upgrade in the mineral resource of the Hemi deposit, which forms part of the larger Mallina gold project.
Hemi’s mineral resource estimate (MRE) has grown by a further one million ounces (Moz) to 10.5Moz. This comes off the back of a further eight months of drilling since Hemi’s June 2023 MRE was released.
De Grey is targeting new near-surface gold discoveries and large-scale resource step outs in its Hemi drill programs, with goals to increase mine life and boost annual production rates from both open pit and underground sources.
“It is great to see Hemi surpassing 10Moz less than four years since it was discovered,” De Grey general manager exploration Phil Tornatora said.
“Since completing programs to support the DFS earlier this year, drilling at Hemi has prioritised resource extension and new discoveries. This work has paid dividends with resource increases of 0.81Moz at Eagle and 0.14Moz at Diucon.
“Several of the Hemi deposits, including Eagle and Diucon are still open along strike and at depth and show significant potential for further resource increases.”
De Grey released its Hemi DFS in September, highlighting a gold project with low capital intensity and a short payback period of roughly 1.8 years.
The company aims to produce 553,000oz of gold at Hemi in its first year of operation, at all all-in sustaining cost of $1229 per ounce. Year two will see peak production at 570,000oz, followed by another seven years of production hovering around the 530,000oz margin.
The Hemi capital cost estimate has jumped 28 per cent since a 2022 pre-feasibility study and now sits at $1.345 billion. De Grey said the cost increase is broadly in line with budget changes seen in other Australian resource projects over the last 12 to 18 months.
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