This is early stage and encouraging. That is all we can say at...

This is early stage and encouraging. That is all we can say at the moment yet we can make some observations. Brownfield gold exploration is high probability, enhanced by an excellent team and modern technology. The most encouraging thing of all is that DRE are on the hunt for gold on the Yilgarn Craton and at the SoM shear.

We have that SoM exploration ticking along in the background. DRE had this to say in the forum:
"The more work we do around the SoM Mine, the more the footprint of the camp or system grows. Initially the work was focused on the 10km long shear that hosts a number of old workings (Popeye being one of them, but there are several with no names spread all long the shear). The identification of Tiger and the other anomalies off structure indicate that we could have further mineralised structures, or a intrusion related gold system mixed in - further expanding the camp and area of interest beyond the original targeted shear. So, we know there are more veins in the area, and the reason we are exploring is to test that.Given the rather thin regolith and shallow depth to fresh rock, we do not plan on undertaking air core at this stage. We will undertake detailed soil sampling with mapping and rock chipping to help define our targets and test with RC."

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So they will not waste money on DD holes until justified. That is good for the budget. Remember that gold deposits do not happen in isolation. The enrichment occurred in an estimated four stages in the Yilgarn Craton; via the fault systems and captured by the right host rocks. Other gold discoveries are known in WA too; e.g. Tropicana which is not in greenstone country. This fits with the prospects at the SoM and as seen above the deposition appears wide spread. Testing will confirm if there is an economic deposit or not.

The Yilgarn continues to give up secrets and DRE have tied up a very nice diverse group of tenements across the state. Gold is not expensive at present. That statement needs qualification but I can back it up. Record prices are never given as a reason that housing kept on rising or on food prices and so on. So why try to apply this to gold? That is absurd as the cost of mining and production keep rising along with energy and labor. So we have to filter that BS from our minds and look at gold for what it is. Central banks bought over 2,000 tonnes this past two years alone. What does that say?

See the chart of gold in AUD terms below. I have used long averages to provide reference to the current price. Do not fall for the recency bias trap. Gold is not far above the 200dma. I have used a log scale to assist with bias; note the trend is clear and there is nothing to suggest the world is ,more stable, that trust in government has increased or that the financial system is in great shape. It will be interesting to go over more reports on the Yilgarn tenements once I get the change. I am really glad DRE are focused on gold this year.



GLTAH CW