Impact: VeryPositive
De Grey Mining has announced a 15% increase in the overall resource but importantly has resulted in more than doubling the mineable resource at its Pilbara Gold Project in Australia. We believe the market has been underwhelmed by the 15% increase; however, we think the market is missing the key point. The fact that the minable ounces increased by 127% right before releasing an open pit pre-feasibility study is very positive news (PFS expected by year end). This news supports our investment thesis that De Grey provides exposure to a solid hard rock development play whilst having the optionality of the Pilbara conglomerate.
