Ann: Mangaroon Ni-Cu-Co-PGE Reverts to 100%, page-33

I agree that further surface geochemistry (unless its substantial) target generation style announcements are more than likely to keep getting punished, at least in relation to the sp….but that in it self isn’t necessarily an immediate concern (for me anyway, I understand it will be for others) – to me it’s more about how impactful any work/results actually are, and how that might assist DRE to a significant discovery. So, on that basis, the last stream sampling announcement was a bit of a miss imo. Clearly though the sp position is still important, particularly in term of our ability to raise additional funds when that time comes…so the less it can be flogged the better.

“Dean is not hearing what the market is telling him and should hit the shallow gold as hard and fast as possible and call in some favours from all and any of his connections before the company can no longer raise any more funds at a reasonable price causing extraordinary dilution.”

In DRE’s defense we should be realistic about any potential pathways to a producing mine…and what that would entail. Because, while conceptually the idea of focusing on the oxide gold to try and generate some free-cash flow as a means of avoiding additional placements is ok…in reality, it is far from a quick, or simple solution to the situation that DRE is in.
Not to go into great detail, but just assume that DRE arrange to toll-treat oxide material from SoM at Paulsens…like has been mentioned before.
The main issues at present are 1) there is no current resource and 2) there is no mining permit.
Both those are potentially solvable, the answer to 1) is drilling (RC) but that’s costly, and say we chew the remaining budget on defining a shallow (and narrow) oxide resource…then what, we would still be rattling the tin at some point. Having a go without a JORC resource is doable for a private operator or consortium who are comfortable operating on that risk level and just ‘dig it and see’ but that’s not an option for DRE. Even if they wanted to, they wouldn’t be able to raise a dime without a JORC resource…not from any reputable source anyway.
The mining lease is a start, but they would also need to lodge a mining proposal, so activity details and plans of operation, disturbance proposals/envelope, excavation plans, any fixed plant, baseline environmental data and studies, water sources, heritage and native title agreements etc. All of which obviously takes time and resources ($).
So, to shift the effort/focus into this at the expense of exploration/target drilling for what is likely to be in the order of 25-30k oz (based off the historical drilling) is just not worth it imo.