De Grey Mining looks to capital raise for drilling at WA gold project

Australian gold explorer De Grey Mining has been granted a trading halt by the ASX pending the release of a capital raising announcement.

The company is raising funds to continue drilling at its Mallina Gold Project in the Pilbara region of Western Australia, having delivered a string of successful exploration results in recent months.

Aircore drilling at the Hemi discovery has been underway since February and has succeeded in growing the scale of the deposit, with mineralisation extended at the Brolga and Aquila zones.

“Our immediate plans are to continue the 80 metres x 80 metres step out resource drilling at all three areas Brolga, Aquila and Crow with one RC and two diamond rigs active,” said technical director Andy Beckwith.

“The metallurgical programme has commenced with an initial emphasis on defining the oxide, transition and fresh domains and completion of a suite of comminution, leaching, sulphide flotation and oxidation test work.”

The trading halt will remain in place until the beginning of normal trading on April 29, 2020, or when an announcement is released to the market, whichever occurs earliest.

De Grey’s share price has reached seven-year highs since the announcement of its latest exploration drilling results in the Pilbara.