We have a plethora of excellent commentary from numerous posters in here that are qualified to add to this or start a new thread. Some intelligent comments not always welcomed from more skeptical and market savvy posters too. I think this is an OK title given the next 6 months puts us in this category and the deal is a given, between sister companies with mutual interests. DRE have sufficient capital to continue to mine ahead of cashflow from the SoM.
The Star of Mangaroon (SoM) - The source of initial self-funding
Please note: the deal with BC8 is not off-track, as both companies want it as valuable cashflow. The important correction on this topic is that cash flow "in total" for the SoM was looking like $60M on an expected (based on previous models in this space) 50/50 basis at 20koz Au to the Paulsons mill. It now appears that a nice rise in gold from the current early stage breakout AND the stellar 100gm/m intercepts in the latest release indicate a life to perhaps $80M to $100M @ 50% = $40M and perhaps more for DRE through 2026 maybe extending into early 2027.
The rest of the results are eagerly anticipated in this stockwork mineralization and could duplicate the results above to some degree. Approvals are running in tandem on a granted mining lease, so no hold up is expected. Mining in November anticipated, and cash flows in Q1 or early Q2 2026. The rise in gold created a lift from the initial $4600/oz Au to now $5200+ and a breakout in gold just starting. The AUD POG has already been to $5500 briefly, and now more substantially in motion to perhaps AUD $5800 - $6000/oz is conservative for many fundamental reasons - and technical.
The new results are expected to confirm the northern stockwork portion of the deposit is rich and materially important within a small deposit like this. I don't want to get unrealistic here but my estimate recently was circa 3900 oz added to the 20k to merely a small bump from infill and a small bump on extension. Now I am 'guestimating' a bump of perhaps 5000oz to make it into the mine plan, that is now in motion for an upgrade.
The stockwork to the north is not closed off but there is a steep hill that makes drilling on the same orientation difficult. They will sort something on that score in due course and there is an additional structure running NW off this area too. The mine was only ever exploited by private miners to around 1986 and they certainly missed most of that due to limited mining methods and expertise. Mining 25000 oz is not a stretch as the mining voids are minimal compared to the continuity being defined. There is more to come.
The REE and Carbonatites have more to come too. This has been covered in depth and more exploration is in progress to compliment the chances of monetization of this asset - that has a plant in motion just over the border of the tenements (HAS and significant investors). This will be monetized in all probability, and currently sits far above the market cap of DRE in value that has to be negotiated yet. The HAS consortium has competition from other interested parties, and DRE will be able to negotiate a fair deal from a position of strength.
DRE will use the funds earned to create ongoing cashflows yet to be confirmed. Mangaroon has substantial upside potential as a very lightly explored region with excellent fault structures and proven gold occurrences widely spread. Illara is a greenstone belt on the Yilgarn Craton lightly explored (amazingly) and spatially situated among form mines.
In summary, cashflows is a major uplift to prospects for DRE and shareholders. This is small scale at this stage, and exploration success is needed to light up investor interest in a massive way. Crack team with runs on the board. A great Board and ground position makes this all possible.
I hope the new title is of use to users of this thread. GLTAH CW
DRE Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
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