watch the 100% plays

I have believed for some months now that there is good reason CAP has maintained 100% ownership interest in some of their EL's from a strategic perspective going forward. To preface my comments, I am not ignoring the significant potential of the JV'd projects, but simply drawing some attention to the 100% EL's which I believe are often overlooked.

The most prominent at the moment is the Euriowie Tin, which has recently had 11 holes drilled and we are awaiting results. In a BRR interview Nick Sheard has previously stated that this is one project CAP wants to put into production to provide an early revenue stream as the company transitions from explorer to miner. Reading an article referred to on the VMS forum this morning, Tin is certainly trending favourably at the moment. An exert from that article:

"...Its been a long time since tin could claim to be the worlds top base metal. Even so, over the past two years the tin price has outperformed its better-known base metal cousins, lead, copper, nickel and aluminium. The reason for tins rise, from around US$10,000 a tonne in late 2008 to recent cash trades at US$20,870 a tonne on the London Metal Exchange, is simplicity itself. Demand is exceeding supply, and it looks like it will continue to do so for some time. That point alone should have investors scurrying about looking for ways to join the tin boom of 2010."

Article can be found here: http://www.minesite.com/nc/minews/singlenews/article/venture-minerals-makes-rapid-progress-at-mt-lindsay-just-in-time-for-the-tightening-in-the-tin-mark/41.html

With the cash payments due to CAP upon drilling success and a positive BFS at Burta, CAP will be in an amazing position to speedily drive the Euriowie deposit into production, pending drilling and feasibility studies pointing to positive outcomes. This would certainly give CAP a great springboard to support further exploration and development, without the need to raise further capital either via debt or shareholder dillution. The additional positive is that CAP can move forward on this project regardless of if/when cash flows commence from the Burta JV (which as TwinTurboCelica posted here some months ago, stand to be extremely significant for the company). Again, Nick has stated that this is the strategy they are pursuing, and this shows some fantastic strategic thinking from the board IMHO.

Further to this, CAP has recently confirmed that it is seeking approvals to commence exploration drilling on the 100% Combaning lease, which is prospective for Gold and Nickel. This was quietly tucked away in the back of an announcement recently and you could almost skim past it without realising. I believe initial drilling will target Gold, however Nick's background from INCO is Nickel, so I see his expertise in this area quite convenient.

In all, I believe the cash payments the Burta JV will provide to CAP (pending meeting required hurdles) are going to allow the company to move forward on a number of exploration and development opportunities without the need to dilute the companies interests, as they transition from explorer into a diversified mining house over the coming years. Compared to other exploration companies, I see CAP as being significantly lower risk and in a far more advanced position to make the transition to a miner, which I am very excited about.

All IMO and I encourage you to DYOR.