CBE 8.96% 7.3¢ cobre limited

I estimated true thickness's over the weekend based on the...

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    I estimated true thickness's over the weekend based on the drillhole inclinations and the D'Kar/NgwakoPan contact inclinations on the CBE figures and yes hole NCP08 is the best (not quite the Zone 5 average but better than the smaller 5N, Zeta NE and Mango NE deposits). I'm waiting for Hole 5 data for confirmation but the true widths are all obviously suitable for low cost mechanised mining. I agree our results are showing good similarity with Zone 5 and there's no doubt that the geology/type of deposit is the same. Bodes well.

    I also agree about the excellence of the exploration team finding this deposit undercover. They will have and will be learning a lot from this phase of drilling and yes I'd say it's almost guaranteed that they'll be able to repeat the performance and turn this discovery into a district. Cupric/Khomacau discovered 5N, Zeta NE and Mango NE within the 35km to their processing plant at Boseto and added another 76 Mt to Zone 5's 92 Mt resource along the way - CBE will do similar.

    I noted in the presentation, Zone 5's AISC of $US1.8/lb Cu (payable?) which is good and low and they are working to a generous 1% cut-off grade. They have a projected EBITDA of c. $US300m increasing to US$600m with the planned expansion - with a 7.0 MC/EBITDA factor that implies a valuation of A$ 3-6 billion. All told, a very attractive mine which, as you say, should be repeatable.
 
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