Ann: Initial High-Grade, Independent Resource Over 3kms at Yin, page-129

Dre will climb towards its target price this year. We can expect fits and spurts along the way of course. The 24c is a target based on around 40m tons. Canaccord have just pointed out that Mangaroon has potential of 3x that across it’s known strike. This is all surface stile only. DRE would need 4 rigs going hard for some time, and some of the carbs to be commercial to drive that sort of number. Don’t forget that 14.4mt only took 2.5 months of real drilling. YIN is now going deep, and this could extend a lot of resource in one pit. You can see some real tons coming with multiple rigs going for the best part of a year. They should hit 24c by the middle of the year, and a new price target closer to 40c coming after that. If DRE were to ever see 120m tons, then the target hits 72c less a little more dilution from another placement to drill it out. If you want to be conservative and don’t get carried away, you could use half that price target and still see 3 times the current price. The Kimberley is a wild card on top. Hitting 5% rich carbs is another wild card. This is now a patient drill out play with the odd surprise along the way. Something corporate along the way might be a surprise. I don’t see management selling this off when they know it’s a once in a life time resource. Why sell now! This is still an early play before we see some real value.
200-250m carb hits are off the scale if they come in. The carbs will have sections/ horizons of commercial grade by the looks of things. Fingers crossed. HAS are getting 2m hits everywhere. You certainly play catch up quickly with mega hits like that. The first Jorc was playing catch up big time. DRE won’t need high grade to make bulk mining work with hits anything like that imo. If the market sees the 40m tons coming up quickly (it will), then the stock should move to 20c quickly. If it then starts to see 80m tons, then we are looking at 40c plus targets.
The market is anyones guess and we still will need to deal with climbing that wall of worry every day, but the big picture looks very good so far. The stock moving around in pips is only meaningful to a trader. It’s irrelevant to the bigger picture. The world is in deficit with the right REE, and DRE has a globally significant amount of the right stuff. Dyor.