De Grey achieves one million ounce milestone

By Trevor Hoey. Published at Apr 3, 2017, in Small Caps

De Grey Mining (ASX:DEG), an advanced gold exploration company operating in the Pilbara region has provided an updated mineral resource for the Indee project announcing a one million ounce milestone, taking into account historical drilling data and bringing the estimate in line with JORC 2012 standards.

The total resource at Indee, as part of the overall 1 million ounce, is 538,000 ounces grading 1.8 grams per tonne, but there is scope for substantial resource extension based on already identified significant deposits, along with a reasonably well defined geological east-west trend.

The Indee project remains subject to an option agreement whereby DEG must pay $15 million to acquire the asset by July 24, 2018.

However, the project is already shaping up as a particularly lucrative deal for DEG with the acquisition metrics reducing from $43 per resource ounce to $28 per resource ounce. This is expected to fall further as drilling progresses at the site.

It should be noted here that DEG’s project is in the early stage here and investors should seek professional financial advice if considering this stock for their portfolio.

Should the acquisition go ahead as expected, the Indee project will become part of DEG’s overall Pilbara gold project which includes the 464,000 ounce Turner River project, situated adjacent to Indee as shown below.

The big picture demonstrates potential for attractive project economics and exploration upside

The total resource across the two projects is just over 1 million ounces grading 1.7 grams per tonne gold with 54% of the resource in the measured and indicated categories.

DEG has commenced a Scoping Study based on a proposed standalone operation with simple open pit mining and on-site processing. The study aims to define proposed project economics, plant throughput and design criteria, capital and operating costs.

Scoping Study findings are expected to be released late May. In the interim, a major drilling program will commence, targeting extensions to existing resources and advanced resource targets including Mallina, which can be seen in the above map lying to the west of the Indee’s established deposits at Withnell, Dromedary, Roe, Camel, Calvert and Hester.

The strong east-west structural trend suggests that there is exploration upside in Mallina and Toweranna, and this will be management’s focus in identifying resource extensions.

DEG already has a head start as previous drilling demonstrates mineralisation at the two deposits remains open at depth and down plunge. Furthermore, the high grade nature of the plunging shoots has given the company a degree of confidence in the potential for a longer term underground mining operation.

Summing up these recent developments and the group’s potential outlook, Geology Manager, Andy Beckwith said, “Across both projects (Turner River and Indee) the shallow resources are well drilled to measured and indicated categories and we expect a high conversion rate to open pit reserves as we progress through feasibility studies”.

Beckwith noted that deeper drilling at Indee completed by the vendors demonstrated considerable potential at depth, referring to the significance of the high grade plunging shoots in terms of supporting an underground operation.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!