In early 2018, DGO’s review of brownfield gold exploration companies identified De Grey Mining Limited (De Grey) as having one of the largest and most prospective gold exploration tenement positions of any gold company in Australia, measured in terms of both strike length of prospective trends and potential undiscovered gold resources. De Grey’s Pilbara Project encompassed approximately 200km of strike length of the sub-parallel Mallina and Tabba Tabba Shear zones with these deep crustal shears providing the migration paths for gold-bearing hydrothermal fluids.
On the 22nd of May 2018, DGO made its initial investment in De Grey purchasing 25 million shares, 7% of the company’s issued capital. At the time, DGO’s Executive Chairman Ed Eshuys said “Multiple existing gold deposits aggregating over 1.2m resource ounces, more than 40 geochemical anomalies, very little drilling below 100m and over 200km of grossly under explored shear zones positions De Grey as a stand out world class gold exploration play.”
Since DGO’s initial placement, De Grey have increased its total JORC resources to 2.2Moz (ASX:DEG 2 April 2020) at an average discovery price of $15 per ounce (ASX:DGO 2 July 2020). The discovery of Hemi in December 2019 has resulted in renewed interest in the Pilbara and a significant increase in De Grey’s valuation. De Grey’s Technical Director Andy Beckwith has said that “Brolga and Aquila are developing into two very large gold systems with widths of gold mineralisation never seen before in the project area nor the Pilbara region” (ASX:DEG 17 March 2020).
DGO’s shareholding currently stands at 203.6 million shares, 15.8% of issued capital.
Further information about De Grey is available here: https://degreymining.com.au/
The investment in NTM Gold Limited (NTM) on 20 November 2018 was the result of an extensive review of opportunities for DGO to participate in brownfield exploration and discovery of gold resources in Western Australia. NTM is a well-positioned gold explorer with 680,000 ounces of gold resources, including the 141,000 ounce resource at 4.9g/t at Hub (ASX:NTM 12 May 2020). NTM is focused on the 100% owned Redcliffe Gold Project, centered around 40 kilometres of strike of the Mertondale Shear Zone and related gold trends. The underexplored Mertondale Shear is within the highly prospective Leonora Laverton Terrane and is close to existing infrastructure and mines.
DGO’s shareholding currently stands at 135.2 million shares, 19.7% of issued capital.
Further information about NTM is available here: https://www.ntmgold.com.au/