This sad situation reminds me of WMC - big build up by...

This sad situation reminds me of WMC - big build up by management and then an unexpected overnight collapse.

It appears that Alkane didn't see this coming, so I would assume that it was something from left field that caused the rug to be pulled out from under CAI.

Although I'm generally optimistic about the small miners and explorers sector, even when I get very positive about a company I rarely put more than 5% of my holdings into any one company, and 5% is the absolute tops for a company with debt. This rule has saved me from suffering too much from some nasty surprises in the past.

I hope that CAI can be restructured and refinanced and can rise from the ashes under new management. Even if shareholders end up with only 10% of their investment, a rising gold price could ease the pain over time. Escalation of tensions in the Middle East and elsewhere could still see a major lift in the gold price in the very near future.