Well here is my 2c worth for all its worth. I personally believe...

Well here is my 2c worth for all its worth. I personally believe that this will be beneficial for CQT shareholders. What has happened? Cqt over the past 12 months has been drilling nice and steadily developing the Mt Carlton and Silver hills ore bodies. Back in Jan this year they had $18 million in the bank and were drilling as fast as they could. It is difficult getting drill rigs, staff, lab times etc etc. They have another 6 months of drilling to go before they are able to really define the orebody. This will then lead to a BFS and possibly the development of a mine in the next 18 months. This will inturn lead to cash flow for the company.

Now as of today they now have a multinational company that is about to embark on a drilling program (which CQT would be unable to do at least for another 12 months) for $30 million. Without this happening there would be nothing happening on this region for at least another 12 months if ever as if they start mining it will further take away from their manpower resources thus stopping them from further exploration.

This way CQT manages to maintain a 49% interest in the region as a free carry for the next three years. Then if they find anything the 24% is purchased from them at the NPV (really money for nothing considering how much money the land has cost them) Now do you really think that Goldfields is going to allow CQT to be involved in this major project if the drilling results come in good or better. No way. They own 10% of CQT and will quickly move to a formal takeover if the results start coming in at any decent level.

Also dont you think that other major companies are now going to look at CQT in a different light. Question they will be asking is why is Goldfields doing this and what do they know. The register of CQT is very open. Goldfields are the biggest shareholder with 11% and i thin the top 20 control something like 35%. Very easy for another major to come in and grab the other 50% of all these projects plus all the other tenements as well. The interesting thing about CQT is that they also have other large holdings of land which are not covered in this JV but are surrounded by other mines suggesting that there maybe ore bodies there as well.

There are a lot of scenarios that are about to play out and the share price is cheap at the moment. Nothing has changed from when the reserve was 1.4 billion and the share price was 90c except that there is an acclerated drilling program and now more likely hood of a takeover than before.

I think Priestly mentioned a roadshow next week. This is when you will see the stock move. All good as far as I am concerned and it just gives me a buying opportunity.