more good news, page-14

bluebottle, your comments are noted. If they did not do a cap raise it would have been slowly, slowly. Maybe too slowly.

What I want to point out is they did the cap raising in the fairest way. I am so tired of other companies giving zillions to their mates then a speck to the retail holders.

Here they were fair with all.

You cannot blame a holder for selling his 20% (entitlement) even as low as 5% over the cap raise. But, honestly, the volume is so, so small who can say what the fair price is.

From next year, we should be cash flow postive. And we will be that way forever. McKinstry ran North Queensland Metals very conservatively. I held there and bought heavily (for me) into CRK because I know how boringly, commerical, savvy he is.

Just think. With the mining boom over it means the contractors to scape and trasport the ore will be cheaper NOW than even 6 months ago. And we were told at $1600 we have a profitable operation. Now the price is 8% higher. And contracting likely 8% lower.

Oh, CRK will start paying dividends. It is what John did in the past and he has said he will do here. It will not be exciting. You will just get a small growth each year in everything... reserves, resources, gold produced, gold price, dividend, etc.

If you can get in at 26/27 on the market, that is fine. But I think after the stag profit is gone... and the volume sure is low. It wont be that price ever again.

I like how from Feb (yeah, 2 months late) we embark on 20k oz per year for two years as a start. Have a look a PXG. They think they will get about $9 mill for their 19k oz 'send to Norten's plant' plan.

So, I am hoping for, from this first mine, something like $10 mill total / net over the two years. With a market cap of $40 mill, to make $5 mill in year one, is really good.

What CRK will do is this. They will prove up 500k resources each year. Remember they are greenfield - not brownfield leftovers. They will, at worst, prove up 2 mill oz resources and 1 mill reserves. If they mine only 50k a year, they go for 20 years. If they profit, at current prices, say (on 50k) like $10 mill a year, then you have a boring 25% profit year after year. $10 mill on $40 mill for 20 years plus.

And we are so leveraged to the price of gold. I am punting on some day - not too distant we see highs in AUD gold price. I can almost guess a 20 to 25% pog price rise will double CRK yearly profit.

The specks of gold here and there are ok to surive... just tonne after tonne at say 1.5 or 1.7 g/tonne is ok. They, one day, will likely find the odd 'fruit for the sidboard'. I hope