Ann: CTN: Acquisition of Yerilgee and Evanston, page-30

Gold price booming again. Up to $4222. Just got to get mining asap.

Probably still 9 months from seeing any dollars from production, so the company needs to find a way of raising enough cash to cover costs for a year.

Selling off non-core projects may not bring in much cash but reduces tenement commitments and offers a small possibility of a future gain, though I wonder if DRE really thought there was 500koz to be found whether they would've accepted such a small amount of cash and shares for the current deal.

Having connections to BC8 will be a real bonus next year imo as they offer a solution to production. Some people think 300km is too far to cart the ore but that's only a consideration for low grade deposits.

Here's my figures based on the rate charged by a friend carting ore in the eastern goldfields on a long term contract.

300km x15c per km, per tonne = $45pt of ore.

At the current gold price of $135g, that's less than .4g in cartage costs. That leaves 12.4gpt in which to cover the rest of the costs.

If DRE uses BC8 to contract mine, cart and mill, the best model would be per tonne of ore rather than the normal 50/50 jv which would rob DRE of too much profit.

DRE needs to raise cash soon so maybe BC8 becomes a cornerstone partner in the company rather than trying to raise through brokers. BC8 could then cover all upfront production costs which can be paid in gold along with all other costs. It's a win-win outcome as BC8 gets to benefit indirectly also from being part of DRE as well as profiting from the contract mining deal.

Once mining starts DRE becomes a different proposition than it is now imo. Just have to wear some pain until furure funding has been sorted.

Just me speculating on what's possible, though rarely do things go the way I imagine they could.