De Grey Mining Ltd (ASX:DEG) has found strong grades and significant widths of mineralisation at its Hemi gold project in Western Australia.

The company – which was proposed for acquisition by Northern Star Resources Limited (ASX:NST) last month – has been conducting infill diamond drilling at Hemi to further boost a definitive feasibility study (DFS) there. The drilling has been run below the current ‘Eagle’ pit design.

De Grey had previously recorded strong diamond drilling results in the same area as part of infill drilling to strengthen Hemi’s mineral resource estimate (MRE) – including 26.9 metres at 10.6g/t of gold from 425.1 metres.

A program of infill drilling conducted in November to boost the MRE for the same Eagle pit identified six metres of gold grading 12.7g/t. Overall, Eagle’s mineralisation has been extended by at least 100 metres down plunge, with this remaining open down plunge and along strike.

General manager of exploration Phil Tornatora said stronger definition work on Eagle was proving promising and praised the “outstanding intersections, including the 78.1m at 7.9g/t Au from HEDD347 reported here.”

He continued: “Mineralisation has now been defined for over 1km down plunge at Eagle, and it is exciting to see that it is still open. Potential for new lodes developing in the hanging wall of Eagle is also demonstrated.

“This program supports the ongoing studies into the potential for underground mining anddemonstrates the upside that still exists at Hemi.”

De Grey has been trading at $1.99.

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