Hi Jonahsworm, you are precisely right we still need to learn a...

Hi Jonahsworm, you are precisely right we still need to learn a great deal more about CRE. I could run a very large post already however it would not do it justice - why?

I need to get over there and look at mapping, talk to MH (ops) and Dean on the geology to get the real data. Then JonG for financials and Chuck - more geo work and hopefully the man himself CB on the strategy and fit of the whole shooting match for the rest of 2012. CB knows the area very well as previously discussed.

It will take a few weeks to prepare and check it all after I get back but should be published by the end of March. As it is paid by FML as part of their promo budget it becomes a public document.

Just very quickly though - they have great oxide trends, studies have shown there is gold there and geophys etc confirms targets - deposits in place but need more work to step out and find out what is below.

Oxide is weathered and usually well disseminated (homogenous - consistent) and shallow because it sits above the water table. It should be free dig and easy to mill - metallurgy has to be tested on a case by case basis. Oxide deposits are excellent lower risk deposits and if grade is reasonable very economic to mine and produce from. CRE costs could go way down with the right approach - potentially into the $700's per oz range over time. Very nice margin at this level even OM will sit up once the results are in the following quarter.

SO many great pits were sitting there ready to go when FML took over by bailing out the company. But with a new balance sheet to back up the mine plan and provide finance this is turning around very well - massive upside here. CRE not a dog it will be a prize racehorse with enough work - over time of course. Big production possible, Barnicoat to add optionality for other deposits and so much to discover or expand on to get the ore feed.

I see some of what FML sees in this but they are much closer so they have invited me to look.

Cheers,
CW
DYOR&DD

PS sorry I got cranky; an abyss is not much fun and I kept pumping out the work as I only know two speeds - flat out or stop. If I offended anybody I am sorry. I have antibiotics now and should now put the Mt Hyde suit away again. You might have been forgiven to think I had PMS LOL.