The potential of CMR's NT acreage was recently highlighted with high grade copper uranium results from the first Browns East drilling of the season including 10m @ 6.6%Cu, 0.46%Co, 0.33% Ni, 165g/tAg and 3.8lb/t U3O8. The intercept equates to 26% copper equivalent worth $2,625/tonne. Handy ore when you consider the treatment cost is likely to be less than 2% of its worth. Needless to say this is not representative of the global 84Mt resource?s value. It does however highlight the possibilities, and the 2007 drilling campaign has only just begun. We believe CMR is one of the most undervalued mining companies on the ASX. Cashed up with the basemetals projects 100% funded by JV partner Hunan, CMR could see earnings from the starter Oxide project exceed $50m by FY08 for a prospective PE of 13 times. The main game Sulphide project could see profit approaching $200m after 2010 for sub 4 PEs. This ignores any contribution from CMR?s highly prospective uranium prospects.
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
