Joint Venture

Gold is tracking today at US$1730....my prediction is US$1800 by end of month. With the joint venture, the gold price going to have a massive impact on the deal, and outcome for CLZ...

IMO - I reckon this is how it may pan out...I have stated before but with gold price going where it is, this looks very promising outcome for CLZ and hence its shareholders (you and me)

JV : 50/50 -

Mining/milling company : OPEX : $AUS1250/oz - lets say round of 100,000oz resource so far at kat gap - AUS$125,000,000

Gold Price : Market Value - lets say : AUS $3000/oz average over next 2 years
- Leaves a difference in profit of : AUS$1750/oz
- Profit of $175,000,000
- JV 50/50 (assuming) - That gives each company a profit of $85,000,000

Yes once bitten, twice shy, i get it.....The company has given many shares, but in past 18months, they have done this to raise capital, use it for drilling and pay contractors. Those companies would not have also accepted i believe unless they also were confident that CLZ had something substantial. I have put a lot of money where my mouth is - 6 figures over 3 years...and averaged down. Not saying this is a safe investment and that we are out of the woods, but definitely one that has the potential to go the distance with all the drilling results and ann. in past 18m.
Especially now that they are pushing for mining KG first - and in order to make money and get company established back on its feet, with funds in bank and less/no debt, I am also hoping that this joint venture works out for KG....this will give the company funds to drill rest of KG, and mine FGP over next 10 years. (hopefully like many of their peers in WA, CLZ can also establish a resource of around 1.5-2M oz with all its land holdings and establish a MCAP of around 200m in the short term (6 months)

They have stated in one of the recent announcements that they are hoping to secure a JV in first half of this year. Thats 6 weeks or less. That means they would have already started discussions this year based on results of KG - hence the mining licence application.

Lets hope the JV comes through in the timely manner and it will be a company maker...good luck to all.