Ann: Option to Acquire the Ashburton Gold Project, page-21

Interesting to see so much negativity.
I mean... DEG just purchased (pretty sure they will) almost 1.5m ounces for $33m at an average grade of almost 3g/t.
On mining leases.... 910k in indicated. DEG can super charge the first 3-4 years with this new projects concentrate added to the production profile.
My guess is perhaps 100-200k p.a trucked 300km north. Might lose 0.8g/t due to trucking costs (that is what it cost RMS to truck vivien ore).
When the grade is 45g/t concentrate, you can see how small a cost it is.

So they basically paid $20 an ounce for the gold, which could currently add over 1 year at least of ore reserves (though I expect it to be smoothed out).

Any producer would kill for a deal like that.
DEG for me, is trying to make sure they can make the pay back period for this development increasingly irresistible to the big end of town to fund them. Plus.... they are focusing on improving the strengths of the project (i.e having to use POX).

Makes perfect sense to be snapping up bolt on acquisitions that are much higher grade than Hemi's main pits.

The best development projects are front loaded with ounces and margins. It's that simple.

Looking forward to seeing what else they snap up.