re: dj's report - the nice bit Cazaly Resources Ltd (CAZ) What...

re: dj's report - the nice bit Cazaly Resources Ltd (CAZ) What is Shovelanna worth?
If CAZ are granted the Shovelanna Hill tenement (46/678) that Rio Tinto accidentally
forgot to renew on time, it will go down as one of the best little land grabs in WA mining
folklore. On present data, the tenement hosts an Inferred Resource of 216Mt @ 62%
Fe (iron ore) within the Brockman Formation - the same stratigraphic unit that contains
BHP's Whaleback mine at Newman. Although many believe that CAZ will not be able
to retain the tenements, if they are successful, the following paragraph illustrates what it
would be worth:
Using the terms within the Memorandum of Understanding (MOU) released on 28th
November 2005 with BHP: (a) 5Mt pa production rate; (b) 100Mt extractable resource;
(c) net margin at A$14/t; (d) CAZ controlling 86 percent of the project; and a 8%
annualised discount rate, the attributable pre-tax value to CAZ would be approximately
A$561.7m.
This would equate to a fully-diluted value of A$9.99 per share.



This was the last paragraph and is probobly alos important for investors to note


Investors wanting to speculate on the upside would be best to wait until the decision is
made by the WA State Government. If CAZ do not get the tenements, its share price is
likely to fall to around +30¢ for recognition of its gold assets.