Hi All,I hold CFR and believe in its long term potential.But...

Hi All,

I hold CFR and believe in its long term potential.

But some of the posts of late worry me.

What is a fair thing to want and actually expect in the next few weeks/months?

I understand the math behind the 400mt speculation;

I know from research Karnataka has excellent potential; and

I believe that time frames and costs to commence digging up ore are shorter in India.

SO...Let's get REALISTIC.

I would be very happy with just 10mt as a starting point!!!

WHY?

Here is some calcs:

10mt at $150 per ton 1.5 billion $

Multiplied by 0,7
(for the actual 70% share I expect CFR to end up with through Elephant Gold)

= 1.05 billion $

1.05b divided by 10 to give an market cap indicator for an inferred resource:

= $105 million. THAT should result in a sp of 6-7 cents PLUS all the other irons in the fire.


Let's say they mine it at 1.5mt a year:

1.5mt x $150 = $225 million a year gross income

BTW THAT IS EQUAL TO 250.000 OZ OF GOLD! With no crushing, treatment etc etc..

Now imho that is enough to open the door to other projects, fund tin mines and the like in Australia, and get the company up and running

To be honest I think some of the hype we see from companies about massive tonnages is over the top. People like to see big figures to get excited.

eg: a recent report: "1.7-3.0 billion tonnes of 20-35%
magnetite" made the market go crazy!!! In reality? It works out to actually be less than 20%fe on a raw tonnage basis! At this stage quite sub economic. BUT it sounded great!

10mt of 60% fe with a short start up time, market ready is worth 10 times that much in Australia where it is a long haul to get to sell the first ton!

So, all I'm saying is: let's be realistic. Let's not build people up to expect massive tonnages. Work through what is a fair thing to expect and what is actually needed to set CFR up. And imho anything over 10mt will do very nicely.

Of course 10mt is = to about 1.5 million oz of gold. That would sound pretty good.

Of course, every 10 -20mt over that is going to be even better!!


Happy for others to comment on this perspective.

Cheers