De Grey Mining
(ASX: DEG)Share Price and News
About De Grey Mining
De Grey Mining is now an effective subsidiary of Northern Star Mining which bought it for A$5bn, wanting to add the Hemi Project to its portfolio.
What stood out about De Grey was the substantial Hemi deposit, uncovered in 2020 and immediately acknowledged as one of the largest undeveloped gold discoveries in Australia.
Due to its exceptional resource growth, solid planning, and exploration success, De Grey secured institutional backing and was eventually acquired by NST amidst a period of high gold prices.
De Grey Company History
In 2002, De Grey Mining was listed on the ASX to explore and develop minerals in Western Australia. For many years, the company operated as a junior explorer, but everything changed with the discovery of Hemi in 2020.
Since successful drilling in early 2020, the company has never looked back, constantly growing its resource and delivering study after study showing this could be a fairdinkum gold mine. In fact, one of Australia’s to p5 based on production. The Ore Reserve is 6.0Moz @ 1.5g/t gold and could produce 5.7Moz over 12 years, equating to over 500,000 ounces per annum.
It would deliver $4.5bn in free cash flow after tax, a payback of less than 2 years despite a capital cost of nearly $1.3bn. And it is set to begin production in the second half of CY26. Chalice will have barely made an Final Investment Decision (FID) by then.
The DFS showed an NPV of $2.9bn post-tax, representing an IRR of 36% at an AISC of $1,295/oz over the first 10 years. The total evaluation period economic contribution is a staggering $10.8bn. Construction has not yet begun, although all necessary approvals are expected in time to start full construction in the second half of this year.
Around November 2024, Northern Star Resources announced it would acquire De Grey through an all-scrip transaction that offered shareholders a substantial premium over the current stock value - at a total of A$5bn, high even amidst a hot market for gold M&A.
In May 2025, the deal was finalised, providing Northern Star with new assets in the De Grey region. De Grey shareholders now own a stake in a major gold-producing company in Western Australia.
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Frequently Asked Questions
De Grey Mining's core asset was the Hemi Gold Project, part of the larger Mallina Gold Project in Western Australia's Pilbara region. It became one of Australia's largest undeveloped gold discoveries.