Hi Formy, I think an operation of around 10-12mtpa is going to...

Hi Formy,

I think an operation of around 10-12mtpa is going to end up being the size required.
If they average 1.2g/t, then that gets them to around 420-470k p.a. Before any sort of U/G mix.
Is it going to cost a lot, sure... but then, producing 500k p.a is going to provide some amazing revenue.
Hence, funding simply will not be an issue in the current environment.
Just to put it in context, GPR was able to raise $140m..... for an operation on 80-90k p.a. In PNG!
(The company is basically E/V zero right now... which I think shows how much easier it would be for DEG to raise/fund etc).
The board say they want to build a mine. That is fine. It's what they need to say, no matter what happens.
Whether they are the ones actually pouring the first bar is a different matter.

I think on balance, its undervalued, with the caveat that they continue to prove up the current resource, without any major extensions in the current discovery. That is partially why I trimmed my holdings over time. Do DEG have the best dirt, arguably yes right now, but the drill bit is a bugger to rely on for 'certainty'.

@Arh0070 - Sorry, have to disagree with you. Can you list any other discoveries above 5m ounces, in a jurisdiction like W.A?

There are a plethora of stocks listed globally, that have lots of resources... but, I will keep reiterating, that not all ounces are the same.
Old projects, are fine, but... they are old, and closed because of low gold prices. Hemi is a discovery that will get into production and survive the next cycle. That is what I believe a true Tier 1 asset is. Just being able to produce above 300k p.a, does not guarantee a long mine life.

@TheGoldGeo - good to have a differing opinion on the threads.
I disagree about grade. Grade is important, profitability is key.
Lets watch WMX as they head U/G with their 4-5m ounces.... how profitable are they going to end up being.
As for BGL. Lets wait and see.

From the stocks I hold, the most profitable producers, continue to be open pit operations, on average. Simple as that.

I try to enjoy my time on HC.
Tomorrow might bring nothing new, or... a hole with 40m at 2.5g/t in a totally new area from the aircore drilling (and leads to who knows what).
Then sentiment will turn on a dime.