Name of the Project
Hemi gold project.

Location
Pilbara region of Australia.

Project Owner/s
De Grey Mining.

Project Description
Hemi comprises the Aquila, Brolga, Crow, Diucon, Eagle and Falcon deposits for total mineral resources of 236.5-million tonnes grading 1.3 g/t gold.

Mining will start with the Brolga starter pit, which drives high rates of initial yearly gold production. Mining will be undertaken by a contract miner and conducted using large-scale openpit mining equipment.

The project is expected to have a ten-million-tonne-a-year throughput, with production envisaged at 553 000 oz of gold in years 1 to 5 and 530 000 oz in years 1 to 10. Peak production of 570 000 oz is expected in Year 2.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of A$4.2-billion and an internal rate of return of 45%, with a payback of 1.5 years.

Capital Expenditure
A$1.3-billion.

Planned Start/End Date
The project financing process is targeted for completion by mid-2024, ahead of a final investment decision.

Full construction activities are expected to start in the second half of 2024 and, based on an estimated two-year construction period, first gold pour is targeted for the second half of 2026.

Latest Developments
De Grey Mining has launched a fully underwritten A$600-million equity raising, derisking the equity component of the financing for the project.

The equity raising comprises a A$344-million institutional placement and a 1:7.95 pro rata accelerated nonrenounceable entitlement offer to raise A$256-million.

It will be conducted at a fixed, discounted price of A$1.10 a share. De Grey has said the equity component of the project financing allows for better planning and management of the forward capital works plan, including near-term ordering of long-lead items and contractor appointments.

The equity raising also satisfies a key precondition of access to debt financing.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
De Grey Mining, tel +61 8 6117 9328 or email  admin@degreymining.com.au.