DEG cannot wait for Novo to progress conglomerate and just tag...

DEG cannot wait for Novo to progress conglomerate and just tag along, its simply not an option for the following reasons.

1) Novo are struggling to progress their own, and for the moment have walked away to pursue other deposits.

2) DEGs conglomerate is different! Its 2 m thick, not 20m. That means if its gold bearing >1g/tonne (for example) then mine it. If its not gold bearing move on to another section which is shown by metal detecting to be gold bearing and mine that. In the meantime the processing plant doesnt stop, it processes conventional gold in a parallel stream.

Novo has to work out completely different mining regime, because the gold is distributed here and there throughout a 20+m profile. They have no choice but to mine it all- they cannot just mine any rich patches because its impossible to define where these patches are as they could be anywhere in the 20+ m profile....one minute at the bottom, then at the top then in the middle. Thats why they were looking at Tomra as an option to make processing of very low head grades which contain scattered rich patches, viable. If the patch they are working on runs out for any period of time its shutdown.

No matter what Novo comes up with, mining will be different at Loudens and its up to DEG to work it out. They are NOT too small, they have shown already its not rocket science and are getting results in a tin shed with a few thousand dollars worth of plant, not spending millions sending rock to Perth! DEG have practical solutions!

As for a Japanese company spending $64m...perhaps they might, but where and when? No firm committment yet, just talk, like Kirkland Lake were doing 12 months ago. A long way from ownership or control.