419mt minimum 59.9 percent grades mkt cap 15m, page-2

BETTER THEN AXO?


Young Trader thinks so!!

And not even 5% of AUROX'S MKT CAP!! ==== BARGAIN BASEMENT BUYING


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Default Re: CNF - Continental Goldfields
Quote:
Originally Posted by YOUNG_TRADER View Post
Hi guys,

I've found a real speccy shell that looks to be getting ready to join the Iron Ore boom, see below



CNF


Mkt Structure

Shares
135m
+ 25m 20c Opies 30/9/07 Listed Opies
+ 50m 20c 30/6/10 Unlisted Opies



Mkt Cap @ 12c = $16m Current



Cash
$7m + $2m in a listed investment which they are looking to capitalise on = $9m


Placement
It should be noted that 45m shares were placed at 12c recently, these shares from what I understand it were placed to Sophisticated Investors who are very unlikely to stag a profit, but may do so nevertheless,

Thus as with ACS caution is advised when buying, however buying at or close to 12c seems safe both from a chart/technical perspective and in terms of the placement



Projects


Vandiferrous/Carbon Steel Project Carbon Steel/Pig Iron/Vanadium, 25%, South Africa

From the looks of things, this seems to be an old operation that went to the wall due to poor Pig Iron prices, "Pig Iron prices 25% of what they are now"

So I'm expecting that there is a historic resource which would have to be several hundred million tonnes of magnetite/vanadium type ore given that a whole operatioin was up and running, However this is just a guess. The company has not released any historical figures or grades, it simply describes the deposit as being "a significant vandiferrous magnetite deposit"

The good news is that the project comes ready with most infrastructure, including an ex-Iscor/Mittel Steel Plant.

The project will use 1M t's p.a. of Magnetite Ore to feed the 350k t p.a. Steel Plant and "should generate revenues in excess of $200m p.a. with vonsiderable multipliers in secondary Industrial activities"

The company describes this project as a turn key project, ie given its a historical project it won't take much to get it going.

However it is still very early days to make a call on the value of this project


Bow River Diamonds, 20%, W.A.

This project surrounds RIO Tinto's Argyle Diamond mine operation which is Australias and one of the worlds largest diamond mines.

Again it is still very early days to make a call on the value of this project

Grab samples have yielded some significant results so far though


Summary

- A large placement done recently at 12c
- Chart wise 12c seems to be long term support
- A very interesting looking vandiferrous/carbon steel operation
- Still speculative though

Hey guys anyone read the announcement?

The company will have a 50% Interest in the Vanmag project

"A report by D.J Schutte in 1980 lodged with the Geological Survey of South Africa provided a (Non JORC compliant) mineralisation estimate based on the above drill hole information of 419 million tonnes down to a vertical depth of 200 metres for the Main and Lower magnetite layers. The Main magnetite layer which has a significantly higher magnetite content than the Lower layer averaged 5.8 metres in thickness with a magnetic fraction averaging 73.5% containing 59.9% magnetite, 1.7% Vanadium Pentoxide and 11.9% Titanium Dioxide. An additional magnetite layer (Upper layer) approximately 300m to the north-east of the Main layer remains to be drill tested."

With an expedited drilling program, Continental aims to delineate a target mineralisation of between 100M and 125M tonnes of 55-60% magnetite containing an average of between 1.3% to 1.7 % V205 and 10% to 13% TiO2 (these estimates are based on the previously published reports, geological mapping, drill hole data and known continuity of the mineralisation in the region).

Guys like I said this will be huge in a few months time!
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