DEG

In 2004, I learnt about this company. This is my first foray into the resource sector involving unknown small explorers. Each time it finds something, the share price went down. I have never understood this. So with each top up, I am poorer.

This company stands out as my biggest loss. The geologist involved was named Explorer of the Year! The company today is a different animal.

Lately, it decided to make a move into Argentina. Now, read my lips. Argentina is going to be the new "West Africa", along with Mongolia. I have already made my first major profit with AND which was taken over by a Canadian company. I didn't want Canadian stocks as it is difficult to trade as an Australian in Australia so I sold it on the market when the price stabilized.

I topped up my DEG in early Dec 2010 with a lot of courage. As often is the case, it fell first. But as the slogan that Argentina is the current flavour for miners, DEG is starting to run. This recent purchase has lowered my average buy price significantly. And since it started to move up, the loss is slowly coming down.

Would I recommend DEG? It is in the right region of Argentina, near successful discoveries, including AND's Cerro Negro. There is not just gold; there is also the new "gold", i.e. silver.