Beijingrock, you are reading the announcement wrong. The due diligence has been completed and Oceanwide have signed the offtake. The deal is done mate Charlie 123 in the case of DFS or a BFS, the only reason these are done is for financing. No-one spends $4m - $10 on a DFS or BFS if you dont need to borrow $$$$. There is no other reason to complete one. In the case of CDU, if you look at previous announcement by the company, " the mining and treatment costs have been completed to DFS standard". As I read that statement and considering the JORC has been completed, the company owns all of its mining equipment and the Orebody is at surface and the stripping ratio reported at 2.5 to one, what would be the point of a DFS.
I also think that with the experience of this board with WM 40 years in the industry and having taken numerous other projects from explore to mining, Peter Hutchinson 25 years and a qualified metallurgist and chemical engineer, Paul Keran Formerly of Chief Metallurgist at Mt Isa Mines with 40 years in the industry, I dont think these guys need someone to tell them that this is a goer.
Im not sure that SFR did a DFS or BFS either. Firstly they (SFR) wouldn't have had time. They only applied for their mining lease in May 2010 and it got granted in Nov 2010 and have already started mining. Its only 5 months since they have their Mining Lease and they started the decline yesterday in their announcement.
I personally wouldn't want to see a full blown DFS and spend $4m-$10m of our cash on a study that would only be an exercise in futility. Im sure there has been internal studies for the company directors to make the decision to mine The problem is the Queensland Government and the bureaucracy that has made the state stagnant. CDU located in QLD has been waiting 5 years and SFR in WA 6 months for ML granting. This is the milestone we have been waiting for. I also believe that with an offtake, they could borrow money if they wanted to but with only a handful of shares on CDU why not do the lot in equity. The talk of dilution is absurd. If CDU had to raise for funds through equity it would add a few extra shares. If you have a problem with dilution its simple just top up and un-dilute. I will,
CDU Price at posting:
$3.65 Sentiment: Buy Disclosure: Held
