heres what your buying

EGERTON GOLD

Currently drilling at Egerton. Should have feedback between 1 and 3 weeks.

Currently drilling an unproven qty and grade of gold. Historic Black Horse closed down in 1900 with ounce estimates of between 2.2 and 3.3 million ounces at 3g/t to 12g/t. So lets work with the lowest of lowest.

This represents an exploration target of 340,000 ounces.
340,000 ounces x $US900/ounce = US$306 million
= AUD$290 million

CFR earn 75% = $217,000,000
Before cost of production and taxes this represents a value of 13.5c per share undiluted. Minus very roughly estimated production costs and taxes of say AUD$150,000,000 leaves us with

4.2c per share.

This is assuming 1).they intersect the targets and 2)the targets represent the lowest possible qty and grades. Anything above an estimated 340,000 ounces at 3g/t is a bonus.

INDIAN IRON ORE - THE BIGGIN

Based on Indian Iron Ore averages and CFR acreage Ive used 400million tonnes at 60%Fe at AUD$65/tonne (the low end) for this example.

= $15.6billion. CFR has a 42% exposure through their subsidiary.
= $6.5billion.

Assuming very roughly estimated production costs/taxes of $3.5billion (higher end) leaves $3billion. This equates to an undiluted CFR share price of

$1.87 per share.

So if the geologists report that is due be released within the next two weeks (as per announcement) comes up with anything that mirrors 400million tonnes at 60%Fe and market prices are at $65/tonne then it would be fair to value CFR at an "acreage value only" of $400million (cheap end) which equates to

25c per share undiluted.

But obviously DYOR.

CFR - The next Indian Iron-Ore Giant

Go The Elephant!