Just keeping this thread alive! Here's what Canaccord said in their daily letter(Friday,Dec 6)
FWIW
Cumberland Resources (CBD : TSX : C$2.20) - SPECULATIVE BUY - 12-month
target price: C$3.75
Graeme Currie
Comment: Cumberland releases final drill results from 2002 program
The final drill results released were from some 14 holes on the North
Portage deposit. Some of the better intercepts included 6.5 metres of 6.7
g/t Au in hole 427 and 2.1 metres of 39.5 g/t Au in hole 433. Results were
in line with expectations and may result in a minor increase in the pit
shell around the North Portage zone. In regards to the resource and
reserve models for Meadowbank, prior to this year's program the project
hosted, measured, and indicated plus inferred resources of 3.0 million
ounces at an average grade of just over 5.0 g/t Au. Our preliminary
estimate is that resource figures could climb by between 10-15%. More
importantly, however, will be the impact of the 2002 work program on
mineable reserves. The objective of the program was to as much as double
the current 946,000 ounces and we believe that this doubling is
attainable. Cumberland and MRDI are in the midst of a reserve and resource
re-calculation that is not expected until well into Q1/03. Cumberland
also released additional metallurgical results regarding overall
recoveries for the North/Third Portage combined, Goose Island and Vault.
The studies completed by Lakefield Research, actually improved upon
previous numbers. We are awaiting several items from this junior.
Currently, the company is in the midst of seeking a new President. We
would anticipate the search should be nearing a conclusion and would
expect the new President to be announced early in Q1/03. As noted above, a
resource and reserve update is also expected in Q1/03. Prior to both of
these events, likely before year-end, we are expecting the company to
announce which engineering firm will lead the company's feasibility study
that is expected to get underway in Q1/03 as well. Finally, one other key
timing event for Cumberland relates to the Meliadine West project that is
optioned to WMC International. A payment of $500,000 is due to each of
Cumberland and Comaplex by January 1. Failure to make this payment would
put WMC in default of their agreement. Maintain SPECULATIVE BUY
recommendation with a target price of $3.75/share. |
