93c target broker report, page-6

Hi guys,

I think that KCN Kingsgate Consolidated could be nibbling on the shares to get a large stake.

They have the Bowdens silver resource in NSW which they bought for $75 Million last year.
Remember that is still a resource, not a mine that is producing silver with a plant attached to it.

And CCU is is only around $100 million now, which is a bargain because they are producing silver right now where the Bowdens resource is still years away from doing so.

So keep your eyes out for Kingsgate as CCU would be a nice fit to their silver mining aspirations in NSW.

Following is an article about the Bowdens silver resource owned by Kingsgate.

jojo


Kingsgate in $350m silver mine plan
BY: BARRY FITZGERALD From: The Australian November 20, 2012

THE district around Mudgee in central-west NSW is well-known for its wine and coal industries. Now Sydney-based gold producer Kingsgate plans to add silver mining to the list through a $300 million to $350m development of its Bowdens project, classified as one of the biggest undeveloped silver deposits in the southern hemisphere.

Originally a Rio Tinto discovery, Bowdens' resource has been upgraded by 40 per cent or 51 million ounces of silver equivalent -- which gives the accompanying zinc and lead an equivalent silver value -- to 182 million ounces, worth $5.7 billion if it were sitting in a vault.

But it is not, with Kingsgate having to complete feasibility study work and gain government approvals for the development, which it believes could achieve first production in late 2015 or early 2016.

Kingsgate expects that the feasibility study, due for completion at the end of the year, will confirm robust economics for the project. In its early years, Bowdens is expected to produce its silver at a cash cost of less than $US10-$US15 an equivalent ounce. That compares with the current spot price for silver of $US32.60 an ounce.

Kingsgate does not think the potential of Bowdens is reflected in its market value. In an effort to alert the market, managing director Gavin Thomas said that the new resource estimate was "comparable to around four million ounces of gold and supports the company's underlying belief in the project and its future potential".

"I don't think people realise the amount of cash that will come out of this thing. It will be a great little project," Mr Thomas said.

The mine would produce two products -- a silver/lead and zinc/silver concentrate. The presence of a base metals mine has raised environmental concerns for some locals.

The project is 25km southeast of Mudgee. Kingsgate is considering building a processing plant on site or at an old cement operation at Kandos, 30km southeast of Bowdens. The cement operation comes with existing power and water supplies, a rail siding and old pits that could be used for tailings.

A recent review of the silver market by Thomson Reuters GFMS warned that the silver surplus was set to increase this year and that the gap between supply and demand would have to be filled by investors.

Kingsgate acquired Bowdens as a 131 million-ounce silver equivalent deposit from Canada's Silver Standard Resources last year for $75m.