Looks like John has sensibly pulled out of DEG before the rather...

Looks like John has sensibly pulled out of DEG before the rather predictable share slide during the quieter part of the season when no new geological results can be expected from the South American work. Well I assume that we have seen the last of these results anyway. It will be about six months at least before we get further results from that area given the need for exploration to start after snow-melt and the lag from sampling to lab analysis and release of results.

I'm still holding though as there are still a few wildcards. One is the progress with Turner River area VMS and Gold JV's, where any successful initiation of drilling could see a rapid spike in the SP, especially if in regard to additional gold resources at Wingina Well, which is already a borderline economic resource at the current gold price. The second thing is the EMG JV at Beyondie, in which DEG still have a very significant stake. Essentially that is turning out to be a very viable resource (iron), but the tipping point will be whether the Oakagee port and rail project gets the green light. If it does (and I suspect it will, but possibly with more Chinese involvement than the current partner mix, I anticipate there will be significant Chinese and Indian interest in JV partnership to get this shovel-ready project going. Might be the end of this year though before we can make a call on that one though. Finally, with the increased accumulation of exploration leases in South america, DEG looks like it is aiming to be the primary vehicle for Australian exploration within the region. If that sentiment becomes more widely accepted within the marked there is significant potential for a re-rating of DEG by the market. Sometimes all it takes is one media article to make that jump. The only real downside at the present price is whether DEG will need to make a placement soon to fund next seasons exploraton work, especially, as the most recent announcement suggests, that they are committed to some on-ground drilling over that season.