Key points
- Northern Star's proposed acquisition of De Grey progresses with key milestones achieved
- Cash and short-term deposits of $743 million expected to fully fund Hemi Gold Project development
- Hemi Project metrics continue to improve with increase in spot gold price
Full summary
The key highlights from De Grey Mining's Quarterly Activities Report include:- The proposed acquisition of De Grey by Northern Star Resources under a Scheme of Arrangement has progressed, with the First Court Hearing approving the release of the Scheme Booklet and the Scheme Meeting scheduled for 16 April 2025.- De Grey has cash and short-term deposits of $743 million at the end of March 2025, which along with a planned senior debt facility, are expected to fully fund the Hemi Gold Project development if the Scheme does not proceed.- The Hemi Project metrics continue to improve, with the increase in spot gold price to around A$5,000/oz compared to the gold price used in the Definitive Feasibility Study of A$2,700/oz.- On the environmental approvals front, De Grey has responded to a Request for Further Information from the federal regulator and formally submitted its Response to Submission Documentation to the state regulator, with a Ministerial Decision on approval expected in or before the middle of the September quarter 2025.- De Grey has awarded contracts totalling $206 million for long lead items at the Hemi Gold Project, slightly lower than the DFS estimate for these items.- Infill drilling at the Brolga deposit has confirmed the consistency of mineralisation, enabling a maiden Measured Mineral Resource Estimate of 12.7Mt @ 1.4g/t for 0.6Moz.- New drilling results beneath the Hemi DFS pit design at the Eagle deposit have extended the mineralisation by at least 100m down plunge, enhancing the future underground mining potential.