Ann: Drilling Successfully Completed at Mangaroon Ni-Cu-PGE JV, page-7

"I am a little confused why DRE was waiting for drill rig for the ree drilling from this site. If FQM are paying for this as an earn in then why is our rig tied up." this is because DRE are doing the work, not FQ. the agreement was that FQ will provide the funds but DRE will organise the drilling and where to drill and when. What DRE didn't want to happen is when JV occurs, the partner company can sit on the work for a long time and then we are working to their schedule. So that is the reason why DRE are using their own drilling team. Also there are added benefits below:

Benefit 1: It be cheaper to get one company to do the work then to get multiple, can negotiate cheaper rate.
Benefit 2: DRE built a relationship with the drilling company with previous drills, so we have flexibility when changes occur, like drilling extra holes and not worried about change request or the drilling team availability (might be booked by another company).
Benefit 3: As DRE used this drilling team before, and we have not had any insider trading during those times, so using the same team will ensure current and future drilling are not leaked.