Ann: High Grade Underground Drill Results from Deflector, page-6

Agree - I think SLR'S recent drilling results announcement from the Santa deposit are much more interesting. SLR has multiple mines with high grade and expanding resources. On another note, Hartleys have done a fascinating comparison of SLR with SAR, implying that SLR very conservative and all inclusive AISC's mean that their costs are not as bad relatively as one might think.

All goldies are down today again, except SAR which has a market cap of $2.2bn compared to SLR's $0.249bn. SAR produces twice the amount of gold as SLR and reports a lower AISC, but surplus cash flows were similar .... hmmm.

The EV/oz prodn for SAR = A$5790, and for SLR/DRM = A$1131...... so SLR/DRM could double and still be cheap compared to SAR.

SLR's revival (under Luke Tonkin) has been based on sound management and an intelligent aggressive exploration campaign .... it will bring this same culture and expertise to the merged entity and the cash to fund it. Growth in quality resources and reserves, good mine life and a minimal size of at least 250-300k oz pa production is a perquisite for institutional investors, without whom, both SLR and DRM SP will continue to be "undervalued" life style companies for their BOD's and employees, while shareholders merely get regular doses of hopium. If this merger doesn't eventuate then both SP will remain depressed till another merger / takeover appears. 

Considering that SLR has $120m in cash and $430m in tax losses, it could be a self funded takeover for a company that can use the tax losses. Ridiculous I know but there you have it. I hold a swag of SLR but no DRM.