De Grey Mining released its half-yearly results for the 2023–24 financial year (H1 2024) with its eye firmly on scaling the Hemi gold project in Western Australia.
The company successfully de-risked Hemi in H1 2024 with the completion of a definitive feasibility study (DFS) and the progression of approvals to reach an investment decision this year.
The DFS mine plan comprises open pit mining production from the Aquila, Brolga, Crow, Diucon, Eagle and Falcon deposits.
Ongoing exploration across the deposits is aimed at shoring up a mine life of a least 15 years.
The DFS found and average annual gold production and all-in sustaining cost (AISC) of 553,000 ounces (oz) at $1229/oz.
The DFS production profile comprises 99 per cent of ore reserves from Hemi. The remaining per cent comes from inferred resources that are incidental to open pit mining.
Further drilling at the Eagle and Diucon deposits unearthed a potential to expand the resources beyond what was originally expected.
De Grey is also considering the construction of a separate regional concentrator at the Withnell deposit, part of its Mallina gold project in the Pilbara.
The new concentrator will treat regional deposits with an initial target production rate of 150,000oz per year.
If plans to expand go ahead, the company said it is considering the potential for underground production concurrent with open pit production at Hemi.
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