If you read my last note I referenced rumors about a project...

If you read my last note I referenced rumors about a project selling for around 20$ an ounce ,It was in fact the Ashburton project .I have been an investor off and on in KZM (not invested in it now),since all thier exploration projects have been a bust to date (kzm) .Was an early investor and it was a 7 bagger for me ,subsequent forays into the stock were loosing .They were looking for Fosterville 2 and failed.Also have a lithium jv but that hasn’t generated much as of now .
The amount of money committed is small and easily affordable for DEG with their big cash hoard which is being depleted since it continues to explore whilst buying into Novo (which has also been a bust to date )and spending exploration dollars there .KZM has been desperate for funds so the option is very cheap ,as I recall it is also an oxide deposit .The Ashburton project has a long history and no one has been able to bring it to a production decision ,exploration is ongoing at this location.
The question I would ask is if DEG has 20 million ounces which would keep their proposed plant going for 40 years why buy into a 1.5 million ounce project ???One would think it would be a distraction from the main (and extremely difficult) task of building a massive plant .One thought that occurs to me is that DEG is planning to sell half thier Malina deposit to Goldfield's in return for building the plant (just like Gold road did with Gruyère)in return for say 500 million AU plus a 1.5% nsr .The other thought is this is just a way of distracting from issues related to permitting ,building the plant with timelines being extended and costs escalating .Anywa on the surface its a good deal to control a 1.5million ounce deposit for less than 5 million.It will be a good bet if the POG goes up but a bad bet if it crashes .POG down 50$ US over the last two trading days.