De Grey Mining's (ASX:DEG) billion-dollar Pilbara gold mining project has taken a significant step forward with the Western Australian government granting the mining lease for the Hemi Gold Project.
De Grey announced that the Western Australia Department of Mines, Industry Regulation, and Safety has granted the leases (M47/1628) covering the Hemi deposits, proposed mining area, and processing plant site.
In a statement, the company mentioned, "This important milestone follows the previously announced signing of a Mining Agreement with the Kariyarra People in December 2022."
It's important to note that the grant of the Hemi Mining Lease does not allow for the commencement of development of the Project, as it remains subject to statutory approvals, including environmental ones. De Grey confirmed that submissions were made to the Federal and Western Australian governments in May and June of this year, respectively.
De Grey also reported that mining leases have already been granted for six of the seven nearby deposits, including Wingina, Amanda, Mt Berghaus, Calvert, Withnell, and Mallina.
These mining leases cover all of De Grey's current 9.5 million-ounce Hemi Mineral Resource and approximately 95% of the Company's current Global Mineral Resource of 11.7 million ounces. Furthermore, additional mining leases now cover the Hemi Regional deposits, with an initial term of 21 years.
De Grey CEO Glenn Jardine stated in the press release, "For De Grey shareholders and potential financiers, this is a critical approval on the pathway to bringing Hemi into production. We are committed to ensuring the Project creates sustainable long-term benefits for stakeholders and look forward to updating our investors with the outcomes of the Definitive Feasibility Study for Hemi in the coming weeks."
