long post of uninformed guesses giving sp 40c+

The siting of the drill rig is difficult for this deposit (look at the 3D air photo in the announcement). The rig would need to be on that steep ridge east of the river (heroic stuff) to get a trajectory that would pass through the orebody at right angles to the dip and so give a good idea of true width. The river and flood areas eliminate the remaining perpendicular drill trajectory sites.

Consequently CSE drilled from the south - and they are almost apologetic - as a cynic may construe the rig was sited to give a trajectory that gave a misleadingly thicker intersection. (Another disadvantage is that this trajectory means misses of the orebody are more likely). I think a lack of appeciation of this siting difficultly (and the complexity of the data) may have mislead on intent and flumoxed some of the broker advisers.

I get a SP of 40c plus - I know little of this but have been reading the ann and prospectus and am prepared to conjecture.

Imagine if you will being in a tall building out in the opera house forecourt. High up. You shine your laser gun down at 60deg to the right most shell. Imagine only the east half of the roof is there and the curve is mirrored on the underside. Let it suspend. Alll the rest of the opera house can dissapear. This lens represents the ore drilled at Einasleigh. Dips east and your drilling at 60deg from the south.

Suppose your laser gun can drill through this hanging lens formed from the eastmost roof half of the opera house. At 60deg from the south. Youre lucky and get pretty much the widest possible drill width through the lens - a whole 55m. Like going in one edge of a magnifying glass and coming out the opposite edge. This is a conservative view of the Einasleigh no6 drill (END006).

The lens is probably elongated in the plunge direction and it is unlikely the drill made the widest possible crossing, but it probably is angling down across the orebody at 60deg. I'm out of my depth here but my guestimate of volumetric measurements of the orebody may be say 50m across by 10m thick by 100m up and down plunge.

This gives 50,000 m3 of ore volume assuming no other extensions. I don't know the factors to use for the rest but I'll guess the weight of the ore is 4t/m3 which gives 200,000t ore. At 6% Cu and A$4,000/t of Cu this gives 12,000t of contained Cu grossing around A$50M. The lens taken out of the 1914 mining yielded 8,000t of Cu, so there is some consistencvy there. The old mine was likewise ore grading 6% Cu.

The rest I know even less about but will guess again. Suppose the cost to refurbish and extend the mine, extract the ore and process it (floatation? and smelting?) is A$30M all up. This leaves a profit of A$20M. The market cap of CSE is A$11m or A$15M (not sure about the unlisted shares). I've a hunch the market cap should be around the profit that can be generated form the assets held - just a guess. So the share price should be higher than it is now by say 30%. 31c X 1.3 = 39c.

Then there is the blue sky. Will there be more ore further south like Tom suspects. Will the gossan to the north currently being drilled turn up anything? There is also some existing 2% ore remaining at the old mine. So any wins on any of these gives 40c plus. Just conjecture but good buying to my mind. There could be more ore to be found I suspect and the ore already found more than justifies the current SP. Any corrections to my mis-construed notions welcome.