If you only read one Hotcopper post this year...make it this one!, page-35

ShouldKnowBetter.

It's a cracker isn't it.
While we're at it, check this ripper from Aljini. Man have we got some good posters here:


"So what is fair price before drill results? 60 – 70c is reasonable in my opinion.

Lets assume company A had the Tick Hill tenements (excluding the orebody) and $3.5 mill cash to drill, with a drill campaign starting soon. That company would be worth around $20 mill.

Lets assume company B had the Strelley tenements and $3.5 mill cash to drill, with a dill campaign starting next month. That company would be worth $20 mill + (I believe more with Hemi hype).

So $40 million +
Add to that the Tick Hill orebody ($~18 mill), a small premium for having both projects (reduced risk, if one drill campaign fails the other could still be a company maker), a small premium for the experienced and proven management, and some speculation on other acquisitions. All of a sudden we are $60-70 mill MC or 60-70c SP and to me that looks quite reasonable, especially with gold above previous all time highs. This does not even factor in the cobalt or copper plays.

After drill results? Anyones guess but if both drill campaigns find what we are after, as in Tick Hill offset + Hemi style deposit at Strelley, a $20 SP could be realistic ($1 billion per project). Either way CNB is a very good risk V reward play.

*As a disclosure, and to show that “my money is where my mouth is” I'm holding 1.6 million shares and don’t plan on selling anytime soon.