De Grey Mining (ASX:DEG) - Executive Chairman, Simon Lill
Executive Chairman, Simon Lill
Source: The Market Herald
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  • De Grey Mining (DEG) is advancing to the pre-feasibility stage for its Mallina gold project in WA’s Pilbara region after releasing a scoping study
  • The study projects an average production of 473,000 ounces of gold per annum over the first five years, placing Mallina as a top-five Australian gold mine
  • The study is based on the global mineral resource for Mallina released in June, and De Grey expects to improve project metrics with further resource growth
  • Shares are trading 5.44 per cent higher at $1.02

De Grey Mining (DEG) will commence a pre-feasibility study (PFS) for its Mallina gold project in WA’s Pilbara region after completing a scoping study.

De Grey Managing Director and CEO Glenn Jardine said the scoping study provided justification the project was viable.

“The PFS will immediately commence in parallel with ongoing resource extension and definition drilling, exploration activities and further metallurgical testwork. The results of the PFS are expected to be provided in the second half of calendar year 2022,” Mr Jardine said.

The study projects an average production of 473,000 ounces of gold per annum over the first five years, which the company said would make Mallina a top-five Australian gold mine based on average annual output.

Over a 10-year evaluation period, Mallina would have an average output of 427,000 ounces with the Hemi deposits comprising 80 per cent of this production.

The study is based on the global mineral resource for Mallina which was released in June and sits at 230 million tonnes at 1.2 grams of gold per tonne (g/t) for nine million ounces.

Since then, De Grey has extended mineralisation at Diucon and Eagle prospects. The company also expects to optimise project metrics further by boosting the global resource.

Shares were trading 5.44 per cent higher at $1.02 at 11:29 am AEDT.

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