Canacrap bullish on CBR:
COMMITTEE BAY RESOURCES LTD. (CBR : TSX-V : C$1.90) - SPECULATIVE BUY -
12-MONTH TARGET PRICE: NA
Graeme Currie
Comment: Gold Fields to contribute $7.1 million in 2004
The Committee Bay property is an early stage, highly prospective,
large,
gold exploration property that exhibits initial potential for a series
of
higher-grade gold zones. The geologic models implied, through
work-to-date, provide the opportunity for significant tonnage
potential.
We initiated coverage of this junior on September 30, 2003 as one of 16
companies in a report entitled “Top Junior Mining Recommendations.” The
share price has returned 100% to date. We maintain the shares as a
SPECULATIVE BUY, now enhanced by a far more aggressive 2004-exploration
program. We had originally anticipated a budget for 2004 of roughly
$2.8
million, double that of the 2003 expenditures. Given the materially
larger
budget of $7.1 million, it is evident, in our view, that this project
has
been rated highly regarding its geologic prospectivity by the two
partners, CBR and Gold Fields. Although early in its exploration cycle,
the potential for the Committee Bay Greenstone Belt reminds us of our
initial review of the Meadowbank and Meliadine projects held by
Cumberland
Resources when that company first acquired those projects in 1993. As
yet,
no target price can be estimated due to the early stage of exploration,
so
the shares of CBR are recommended for risk accounts only. |
