Target 3-6 cents high grade production going up

The A1 Mine is now mining the "North Dyke" high grade breccia with grades of +5 g/t Au AND air leg miners are also pulling higher grades from historically mined areas containing 5-10 g/t that were left in place because they were uneconomic. There is sufficient drilled out resources for about 12 months worth of mining to supply 30,000 tonnes per quarter at a mill delivered grade of 6.29 g/t Au. At 90% recovery = 5,478 ounces per quarter worth A$1,700 for sales of $9,313,258 plus silver credits.

A1 management are expanding the size of the decline and have bought in larger mechanized equipment TO HANDLE A LARGER THROUGHPUT OF HIGH GRADE ORE.

The North Dyke has significant depth potential that remains undefined, but technical interpretations put it at +3 years of current production rate.

There is also a SOUTHERN DYKE that has been identified that is believed to contain 8-10 g/t Au that is very close to the current workings around the Northern Dyke.

A third area under the VICTORY STOPE has also been identified that contains 8-10 g/t Au.

THESE THREE TARGETS JUSTIFY A CONCEPTUAL PRICE TARGET OF 3-6 cents for CTL.

Current ore production to the mill is running at 30,000 tpq / 120,000 tpy with an unused capacity of 30,000 tpy.

Air leg Miners are now working in the Union Mine (next to the mill) to generate additional high grade process ore that will bring us up to full capacity of 150,000 tonnes per year for +25,000 ounces (from 473,000 tonnes at 12 g/t Au).

Additional "near term production gold targets" have also been identified at Nuggety, Eureka and Tubal Cain that can be put into production fairly rapidly.

THIS WILL PUSH THE TOTAL TONNAGE OF AVAILABLE ORE INTO THE 200,000 -300,00 tonne per year range.

NEXT STEP WILL INCLUDE THE ACQUISITION OF MILLING AND PROCESS CAPACITY and paid from the very healthy free cash flow being generated. This cash flow of $4-5 million per quarter is currently being directed into mine, plant and equipment upgrades at both A1 and Union Hill with extremely good results.

Assuming that $1,000 per ounce is spent on production and administration, then $700 x 25,000 = $17,500,000 will be available for development and upgrades. This pushes CTL into mining from 3 different locations, operating 2 mills and sends the share price to +10 cents within 12 months. Good luck to all longs