DEG 2.35% $1.53 de grey mining limited

tenement map and lineaments santa cruz

  1. 11,521 Posts.
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    Hi ,ok this map shows most of the tenement holders in the Deseado Massif Santa Cruz Argentina as well as the mineralized trends or lineaments.I have overlaid as best I could DEG's leases ,their farm in and leases they hold options over. A couple of points to consider :
    1 The Kingsgate farm in ground lies very close to the southeast of Andean Resources(now Goldcorp) Cerro Negro deposit
    2 Three of DEG's other leases sit directly on major lineaments
    3 DEG holds or controls the sixth largest area of leases in Santa Cruz
    4 I have listed below the comparison of fully diluted market caps of a number of the companies operating in the area.What is obvious is that DEG's MC is a fraction of it's regional peers(calculated on December 26)
    5 DEG have about $3M cash and their 20% free carry in the JV with EMG at Beyondie is worth about $4M or $5M, which leaves a value of about $5M for it's other Australian leases and it's ground in Santa Cruz
    Comparison of Market Caps for Santa Cruz explorers/miners:
    Mirasol SE..................$A 208 Million
    Patagonia Gold..............$A 605 Million
    Extorre Gold Mines..........$A 635 Million
    Minera IRL..................$A 157.7Million
    Hochschild..................$A 3.235Billion
    Coeur.......................$A 2.367Billion
    Minera AndesInc.............$A 812 Million
    IAM GOLD....................$A 6.46 Billion
    Pan American Silver.........$A 7.89 Billion
    De Grey Mining (DEG)........$A 13 Million

    Conclusion:
    Whether you chose to compare DEG with other ASX listed juniors exploring for gold in Africa or South America or with it's neighbours and peers in Santa Cruz it seems to me that it is currently obscenely undervalued.I am not even going to begin to guess a value for DEG should they make some decent drill grades when they finally get around to drilling their leases.I do wonder if De Grey Mining's leases
    mightn't make a nice morsel for one of it's Argentinian neighbours to swallow.I am also mindful of AND's rise from 6.5c to it's eventual last price before being taken over,from memory it was about $6.50
    Please have a careful look at this map and consider the possibilities. I believe DEG provides a low risk entry into this highly productive "elephant country"with minimal downside risk and enormous potential





 
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