BGL verses DEG, page-12

Grade is so important. A simple but useful way to grasp this is to watch some of those USA based gold mining shows where they are pouring through the yardage of pay dirt through trammels and sluices and then do the weigh ins. The whole team just light up when they hit a high grade patch. Occasionally they get a full season of high grade and make big dollars. High grade means they know they are in the money - all those endless running costs are paid and profit flows fast.

Two to three grams per tonne pays the bills and a low wage for those miners but they get very excited at 6 grams per tonne - but struggle to sustain it as they always seem to be chasing what the old timers missed.. Big miners are just the same in that high grade creates rivers of profit but scaled up into the millions and billions of dollars.

BGL is in the very high grade range and has plenty of exploration upside as well. DEG has that sense that something even bigger might be around the corner but they seem fully valued unless the grades pick up. BGL is solid as it is but will come back into focus like DEG for resource growth potential once they start to get good drill results in new ground. The market will always end up valuing high grade way above good grade.