restoring confidence

Any thoughts on how confidence can be restored to CAV?

IMO, if we don't get spectacular assay results on both the Fe and Mo projects, the sell down will be viewed by the market as insiders exiting - whether that is true or not.

Of concern to me are:

- the delay in the option issue while someone was obviously slowly feeding shares out into a tight market.

- The non-release of any results on the Moro do Cobre project despite the company claiming some spectacular rock chips (to 24% Cu and 5.8gt Au if I recall correctly).
In fact I don't even think the project got a mention in the last quarter report when we should have had the results from the lab.

- The delay in assays from the Fe project. Not even so much as a photograph of the intersect from a hole that was drilled 4 months ago.

- The delay in Mo assay results (probably not the companies fault). At least a photo of a thin plate of Mo was released.

Possibly also the appointment of Eckhof has not been well received by shareholders. Similar to CAV, I am sitting on 68% losses on ELM where very promising initial indications reported at Shinko West strangely resulted in extremely poor results after exploration. That company's capitalization has also been gutted as shareholders abandoned the company to leave it trading at little premium to cash backing.

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Now looking at the share price we obviously have problems:

1. Opes prime overhang.

2. Option conversion and dumping - many more millions to go there, and unless the early exercise ceases, the SP will remain under pressure.

3. Possible shareholders losing faith an selling.

Now 1) will be sorted out in the next week, but 2)/3) can only be rectified if holders start to believe in managements ability to deliver on projects, and to deliver significant value over the next 12 months to ensure the options always remain in the money.
Certainly there are huge challenges that lie ahead for CAV, the remoteness of Parmegiana being almost insurmountable, and shareholders will need to know they have a competent management team that can deliver on a complicated billion dollar project. The difficulty we are having at this early stage with mere drilling and assay is not a good sign.

Also, nobody is going to buy CAV knowing a major shareholder is sitting with his finger on the sell button to dump 1m shares! This is very poor form of the part of those shareholders, and they are doing more damage to the company than the delays on the projects IMO.

Nevertheless, we are at a critical point here, where poor results could see a rash of option conversions and selling while the options remain in the money.

I personally hope we get spectacular results that restore confidence in management, and assure investors that this has not been a very well run pump and dump.

But unfortunately, if we get poor results, we might have to choose the difficult route and opt for director changes at upcoming AGM's.

That may be undeserved, but necessary.