Ann: Broad Sulphide Zones Intersected at Yarabrook Hill, page-298

Hi jason, been out most of the morning and I see while CPN tried to hit a new high which has I guess become resistance and bounced back down to be currently in retrace, CHN has surged to a new high I believe...

Anyway what I mean by the words massive upside "from here" or it could have read "from this point" or "even from this point" ?

What Im saying is even though this seems or these seem like high share prices for these companies because all we have to refer to is what the share prices was or were before what we should be referencing is what is the state of the market and what is the value of the target minerals?

Also of course what is the exploration upside of the target minerals i.e. how much may either or both these players have considering early signs and the size of the likely prospective areas in their leases..?

Well to start with the easy stuff (always the best place to start) the worth of the target minerals is at or near all time highs and increasing.

We are in a high end mineral bull market....a very good time to be exploring, it doesn't matter nobody will be selling minerals for a few years that hype flows onto the share prices just as mineral price drops do too.

CHN has massive upside as they have not put out a jorc yet and everyone is still guessing what their targets are though with 6 rigs going 24/7 you can see they are thinking big.

The extension drilling they have planned to move forward towards the State Forest increases their upside enormously on what is already looking like an enormous deposit of a good grade very valuable suite of minerals.

So their upside, I don't even want to put a figure but its multiples of current SP. To boot not only do they have hundreds of SQ KM more leases to prospectively explore they have low shares on issue and a huge swag of cash.

But this is about CPN.

We have historic drilling with proven CHN like target minerals, a large well shaped lease in a great location, and very clever management that seem to have access to the CHN brains trust.

But most excitingly we are starting to see drill cores with visible sulphide taken from well spaced drilling so it seems we too are very likely to have a large resource of similar material to what CHN are digging with huge exploration upside.

$2.50 a share only seems a lot because we were 70-80c for a good while. But considering there is, what, less than 80m shares so about a quarter of what CHN have I think we will soon see (on decent assay results) that $2.50 is a pissy nothing share price. It certainly is compared to our upside.

Because we have a quarter of the shares of CHN (and they themselves have low shares on issue) we will see explosive share price growth given good assay results and the occurrence of widespread proven target minerals.

It is exploration, there is always downside risk. If there were no PGEs in the first visual sulphide cores and low Ni, Cu we would drop.

I don't expect our first drill cores to be amongst our best as was the case at CHN, that was exceptionally lucky but the market might expect that....

I can say we seem to have very similar material and over a large area, considering the number of shares available to the market I think our current share price is cheap knowing what is known.

We will know more soon at which point I expect the share price to become a lot more or drop a bit, which may give a buying opportunity.

Personally I think it very likely (seeing the small amount of early evidence) that we have a repeat of CHN like minerals over a large to very large area, so I think it very likely we will find and prove a commercial deposit and our share price and market cap will continue to grow substantially and quite quickly from here.
(remember the market looks at Market Cap to value a company we fixate on share price)

(This is no doubt why CHN took 10% at float, because they could see the same thing even earlier than me regarding the presence of target minerals.)

Anyway I am no guru on this, these are just my thoughts, there is always an element of guesswork, luck and risk.