Ann: Gold nuggets confirm important new conglomerate discovery, page-173

Yes based on the trend of what is being proved up so far ARV/Novo has real potential to be a $1bn company. A few million ounces at favourable AISC would get them there easily. If you take out the current $27m of Novo stock they are holding from their valuation they are trading at around $100m. Giving the JV an implied value of $200m. However the main reason for this is option holders converting and selling holding the price back. I expect another move there soon to push that valuation to at least $300m for the JV over the next month or so.

What does this mean for DEG. Well we (once the option is paid) own 100% of our ground. So if we can start proving up similar results to ARV/Novo and demonstrate that we could be sitting on a similar resource then we should be able to head towards at least a $150m valuation over the short term. After this raise (assuming $5m at 15c and no options) we will have approx 360m shares on issue. So short term target is at least 40c in my opinion.

The other exciting thing about these gold specs is that it could be at the right time. I am not necessarily a subscriber to the theory but there has been a lot of renewed talk of market breakdowns and economic crashes etc etc. Gold has recently broken it's LT down trend I believe but it has been more than a sideways move then upwards. If stuff really gets ugly we may see a new ATH on gold. So if you have gold trading at USD$2,000 and AISC on these congloms at USD$400 that is some serious margins. It would blow these valuations through the roof.