Ann: Hemi confirms potential for major discovery, page-124

@McHale, nice post.

while I agree that my back of the envelope numbers may well be conservative, that was exactly the point I was aiming to convey here! If the mineralisation continuity is more or less confirmed over 640m then we should easily have a (very shallow) 1 million ounce deposit in the bag and a market cap of at least $100 million - based on Hemi alone!

The upside, as you rightly point out, will come from either a higher grade (>3g/t) or greater dimensional scale - or both. The SG of 2.6 I worked off should also be a bit on the low side but I am not a geo so I'll stick with that number until corrected by someone who knows more on that subject.

Speaking of dimensional possibilities, Figure 5 (see below) from today's announcement showing the planned drill holes gives some clue on how far DEG's geos think/hope the strike may extend. One could surmise they have good reason to go looking there. On the other hand, being an intrusive system, there is a strong case the mineralisation may continue for many hundreds of metres at depth.

So as with any early stage discovery, there is upside on multiple fronts. However, there is a distinct feeling from the company narrative provided thus far (and from DGO) of genuine excitement for this to be something special.

With permission to drift off into dreamland for just a fleeting moment while I remove my conservative hat, let's imagine the ounces Hemi may contain should both the strike and depth ONLY double going forward.

At 2g/t that would mean 2 to 2.7 mill ounces, at 3g/t that would be 3-4 mill ounces!!
At 4g/t.... naah let's not go there LOL! While all of these are total BS assumptions at this stage, they do give some idea of the upside that could quickly unravel here. It is possible some of today's buying was already based on valuation models factoring in such numbers.

For now, Hemi appears to be the type of discovery that promises genuine blue sky potential. How the market values the blue sky in the short term remains to be seen but today was a damn good start and hopefully a forerunner of more such strong days to come.

GLTAH and please take the above speculative commentary with a grain of salt.