Ann: Completion of Bookbuild for Fully Underwritten A$130 millio, page-8

Yes, you definitely reduce your risk with the approach that you describe. In effect you are saying that you only want to invest in companies that have produced a DFS and have advanced their funding to where they can begin construction. Still not guaranteed for success (witness GPR) and you will lose much of the early gains that explorers can give. Still, sometimes bargains arise that meet your criteria and TIE has been one of these recently, IMO.

What is your criteria for a "proven resource"? Do you mean JORC standard reserves or simply resources? There is a wide level of risk across the various definitions of: proven reserves, probable reserves, measured resources, indicated resources, inferred resources.

A company normally gets reserve status as part of preparing a DFS but it will also have resources that have not yet been assigned reserve status. Companies need at least indicated resources for a PFS but can produce a Scoping Study with just inferred resources.
DEG now has reserves as well as measured, indicated and inferred resources. It does not have a DFS yet but is working towards that and definitely not yet enough funding to build a mine and processing plant.

The big attraction with DEG is its massive resource (still growing apace) and potentially high production. The high production requires a large plant and so a lot of of money to build, especially since expensive pressure oxidation is involved. However, even with high production it will still be a long life operation. The PFS, which estimates the AISC at $1220/oz and shows an IRR of 41% post tax, indicates that it should be a very profitable operation with a strong cash flow.