Today's announcement is crystal clear. CGX are going to expand production well beyond the 4,000,000 tonnes of ore originally planned. They are now operating at 6 million tonnes and will expand to 6.5 million tonnes. In addition, they have a scoping study planned to add further milling capacity - what else would one expect given all the gold they have found and their exploration program? Do I hear 400,000 ounce per annum operation coming? I think so.
I also liked the sentence on the second page about a targeted acquisition strategy. With all that cash they will be generating they are in a prime position to takeover other juniors (note their new investment in SRM which is exploring near to MML's tenements).
At least we got two good announcement out of them today and one yesterday - they are cranking up their PR.
I want at least $10/share if there is a takeover.
loki
CGX Price at posting:
$2.60 Sentiment: LT Buy Disclosure: Held
