CNB Summary and Why Its So Undervalued, page-2232

Hi All,

I’ve followed along the CNB forum since I purchased an parcel at 17.5 cents and appreciated the wealth of information provided by the team here. I’ve averaged up and now hold decent sized parcel (subjectively) at an average of about 25 cents. My shares will be tucked away until we see the $ figures and am of the opinion the entire market will be much higher come year end (especially gold equities with European and US stimulus pumping soon).

I’ve previously sat in the grandstand on the CNB forum but I wanted to add a small bit of information found today (not aware that this this has been touched on earlier). The DEG AGM notice was announced today and included a range of information to be trawled across for their shareholders.

I’m not trying to cross-promote (I missed riding the DEG train ) but provide this more an understanding of the nearology information. My interest was peaked at the performance milestones up for vote (which will expire in 4 years, upon shareholder approval) and extracted below - page 34 of the NoM for those interested in reviewing:



Whilst this is not confirmed, DEG management has set the goal of achieving a mineral resource of at least 12 million ounces. As many of you have touched on earlier, it seems entirely plausible that decent gold mineralisation is also likely to occur at CNB’s Strelly tenement just up the road from DEG and where two faults converge (@mustpow or a station manager might have some further comments here…?). This may not eventuate to this level and could trent more towards 5 - 6 million ounces, but indicates a massive new gold region regardless.

Further, DEG’s management have set the goal to have a complete DFS confirming a 500,000 ounce p/a producing mine. They are also looking to be making appropriate finance arrangements, which will see them considering the capital expenditure and facilities required to get this mine churning. Given that DEG is more advanced than companies in the area, I expect they will be incurring the upfront costs of constructing a processing facility etc.

What does this mean for CNB?

In the event that we find an economically viable resource to mine (fingers crossed), it is possible that our upfront capital expenditure can be substantially reduced by partnering with DEG in some form. The alternative is that it is also possible than any facilities established by DEG may be oversupplied by their resources / DEG not being willing to do a deal rendering this not viable.

The above is hypothetical and based upon the goals of DEG’s management set out in their performance rights – happy for this to be moderated if it is too cross promotional / uncertain. CNB still needs the drill bit to hit for this to run to the $s, however when considering Strelly with the other fundamentals of this company, I’m more than happy to hold.