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 an 800 000 t/y pressure oxidation circuit. 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. Total recovered gold over the life-of-mine is estimated at 5.7-million ounces.

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$1.35-billion.

Planned Start/End Date
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
The Northern Australia Infrastructure Facility (NAIF) has agreed to terms for a A$150-million loan to support development of the project.

The terms agreed include a commitment by De Grey to continue to engage closely with the Kariyarra People, the native title holders of the land on which Hemi is located, and to drive positive outcomes for traditional owners.

The NAIF loan will form part of the lending syndicate that is expected to provide a combined A$1-billion senior debt facility and a A$130-million cost overrun facility that, together with De Grey’s existing cash balance, are expected to be sufficient to finance the development of Hemi.

De Grey expects to complete the project financing for Hemi by December 2024.

A final investment decision will then depend on the timing of the receipt of final environmental approvals. 

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.