Pilbara Goes for Gold......., page-3

Hi Wack

Thank you for your ongoing & valuable contributions to the DEG threads.

With regard to the Alluvial/Non Alluvial (Conglomerate) gold question & its brief mention in the earlier DEG thread (Pacton Gold up 42%), do you have an opinion regarding its relevance for our JV's with Vanmaris & FarnoMacMahon (Novo) on the nearby tenements in the Egina area.

Specifically, as per the respective option agreements the vendors (VM & FM) retain Alluvial gold rights only on these JV tenements.

Based on this I suggest that DEG should be able to claim up to 80%/75% of all other non-alluvial gold (Conglomerate & Structural) on those JV tenements.

If conglomerate gold is subsequently found on the JV tenements – & they are less than 10km from where Novo is discovering conglomerate now – it could materially improve DEG's bottom line if it was determined that conglomerate gold is not alluvial.

Welcome all opinions on this important question.

Cheers Ark