A regional scoping study for De Grey Mining’s Hemi gold project in Western Australia has presented potential to extend and increase the production profile of the project.
The Hemi gold project is located in the Pilbara region of Western Australia, with exploration tenements stretching east to west for an approximate 150km distance.
Through the regional scoping study, De Grey has evaluated potential development of the Hemi regional deposits located to the east and west of the Hemi gold project.
The study found that production from Hemi’s regional deposits and the Hemi gold project could increase global gold production from the project area to about 700,000 ounces (oz) per annum from Year 4 of operations at Hemi.
Other findings from the study include potential additional production from the Hemi regional deposits of about 817,000oz averaging 142,000oz per annum over a six-year period, at an average operating cost of above $1800/oz.
“Hemi represents a provincial scale exploration and production opportunity and the company is actively assessing ways in which the long-term production profile of the project can be enhanced over and above the Hemi DFS (definitive feasbility study) production profile outlined in September 2023,” De Grey managing director Glenn Jardine said.
“The Hemi regional scoping study provides an important initial evaluation of part of this potential to both extend and increase the production profile.
“The proposed 10 million tonne per annum pressure oxidation circuit at Hemi is a regionally strategic asset that has the potential to treat additional oxide ores and gold concentrates from outside of the main Hemi deposits.
“The 2.2-million-ounce Hemi regional mineral resource is an obvious first source of additional feed and this initial study outlines how an integrated development of the Hemi regional deposits could be both technically and financially attractive.”
Looking ahead, De Grey will continue targeted regional exploration seeking to add to its global mineral resource to improve the initial scoping study outcomes, as well as continue lower-level studies that will improve the Hemi regional project’s status.
“Our strategy is to time the development of the Hemi regional project utilising cashflow generated from the fully commissioned Hemi project, while also bringing forward cashflows from the Hemi regional deposits as soon as practicable,” Jardine said.
“The Hemi regional deposits will not displace any material from Hemi but aim to utilise the expected latent capacity within the front and back ends of the Hemi plant.”
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