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Global measured and indicated mineral resources of 20.5 million ounces (inclusive of mineral reserves)

Advancing North America's 4th Largest Gold Reserves Towards Development

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luker

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SP Upgrade RBC

posted on Sep 10, 2009 12:13PM

From RBC's Micheal Curren:

Big Expansion Of Gold Resources. Total gold resources were increased from

13.2 to 24.7 million ounces (using a 0.5g/t cut-off). Using the same 0.6g/t cut-off

as the mineplan, M+I resources are 17.3MMoz, and total resources are

22.4MMoz.

Investment Thesis - Compelling Risk/Reward

As they are trading at a paltry AMC of US$22/oz, which is almost half of the

non-producer average of US$43/oz, we see good opportunity for a re-rating of

DGC shares as investors digest the positive pre-feasibility study and the

opportunities for improved economics, and as the Detour Lake project achieves

milestones over the coming year (full feasibility study in Q1/10, large equity

financing in H1/10, permits for mining summer/fall 2010).

Recent revisions to our model from the pre-feasibility study, and the rolling forward of our valuation basis from 2009 to 2010

estimates, lead us the increase our 12-month target price from $15 to $16/sh, and we maintain our Outperform, Speculative Risk