Ann: Farm-In and Joint Venture Agreement at Bresnahan, page-24

Hi Cpago.

As posted by @kevin44 recently, the total minimum annual expenditure costs for the divested projects to CTN were $700k per year, which included $170k of rents & rates.

Meaning $170k for rates & taxes to the shire and $530k for exploration/all other costs.



Anyway, my point is, it was $700k total, not $1M.

Not sure how much the same costs are in the Bresnahan project/area, but whatever they are, Teck will be contributing/reducing DRE's costs by $250k in the first 18 months, $1.25M within 4 years and another $2M over another 4 years.

Teck managing all exploration, so more off DRE's plate and lets them concentrate on working towards gold mining and using those funds for the big discoveries.

If anything comes from this JV then it's a bonus, that we didn't have a few days ago.



General comments in relation to this JV/announcement:

- I am (pleasantly) surprised that they were able to sign up a $34B Major miner, and get them to commit to spending $3.25M on something DRE have spent pretty much no time or money on (wouldn't have been surprised if it was a JV/deal for the Money Intrusion or Tiger, or part of the Kimberley (would've expected more money though for those as they're all confirmed discoveries))

- DRE just did a few rock-chips in the area before this JV

- benefits to DRE:
-- cost & time reductions
-- upside on any discovery (funded by Teck)
-- $35B Major in our camp



Hopefully we'll get a nice JV/deal for the Money Intrusion soon too, to replace First Quantum, hopefully by another Major.



And then we'll see what they're planning to do with the Kimberley, from the "strategic review", and if they get another Major in there too, to progress it for them, or if they sell it off, or keep it, or a combination of those things.



And they're also divesting the rest of Central Yilgarn (Illaara)?



Cheers,

GB.