Banter and general comments, page-26089

The last presentation slide noted Core had, on average, spent $1.95 per ton of Mineral Resource added. Allowing for some inflation and drilling more speculative regions the ratio may well increase. If it remained in the $2-$3/t range then a $30m drilling campaign by Core could be expected to add 10-15Mt in resources.

While Core could buy out CHR, I suspect they have decided the returns from a $30m drilling campaign are likely to be stronger than investing a similar amount buying out CHR. That noted, CHR does have something that I think Core would want and that is the approx. half km of tenement to the east of where Blackbeard was drilled. This may turn out to be worth nothing, but it may also be quite valuable. Given CHR's cash position and cash spend rate they are going to be rattling the tin for more cash soon. If CHR spend $1.8m this quarter they are down to $3.5m cash and under 2.0x quarterly spend.

While CHR won't want to, I wonder whether CHR will end up selling the part of the tenement that could contain an extension of the Blackbeard tenement extension to CXO to avoid doing a capital raise and be in a position to progress their other exploration targets. If they did, what is a fair price?