Ann: Shallow, High-Grades at Star of Mangaroon & Popeye, page-60

Yes, it is not only EMC, HRZ just started production this month and will be utilising the Paddington gold mill north of Kalgoorlie. I think most junior managements have realised that it is tricky and expensive to fund their own milling operations unless it’s a huge resource with a long mine life.

For any mine that is 4 years or less it seems more profitable to strike a deal with a nearby company and/or mill and do a profit share. In this gold market it’s better to strike a deal with some sort of ´ready to go’ and established mil, even if you are paying overs than waiting for finance discussions, construction etc. Best to get the cashflow happening asap and build slowly up, avoid further dilution and low ball capital raises in this market. Once you are at a decent cash position, it funds other exploration, other operations and the banks will look more favourably at you for loans once you have cashflow happening.

DRE should be thinking in a similar way imo.