Claude:
Little Cadre (CSL.H,V) just keeps rolling along. :^) I just received the PR below. They've completed the profiling of the river bed and identified 3 prospective areas totalling 160 M tons of sand and gravel.
After all these years of patience, I feel that it's about time I brought the economic potential of the Caroni project to this board!
The bulk sampling (next stage) is critical -- but it now looks as though this will happen within a few months Just as a reminder, from their pre-feasibility study (done by UBC in 2003), reported grades in the Caroni are about 0.7 gpt gold and 0.03 carats per ton diamonds. And the previous CSL PR suggested that they expect higher grades than this in the selected areas.
If these grades prove up, with sand and gravel at $8/ton say, gold at $450/oz and diamonds at $125/ct, the potential value of 160 MT would be over $3 Billion. And CSL owns concessions that would contain far more than that.
And with a 16-year "mine life", gross revenue from 10M tons per year would exceed $200 Million (US). That wouldn't be too bad for a company with a current market cap of less than $5M CDN. :^) The project economics would be quite robust, to say the least! <LOL>
As I've noted many times, the float of CSL shares is very small and you have to be very patient to accumulate. And it's highly speculative. Everyone should do their own due diligence. But it's still one of my biggest positions. I fell in love with the story about 10 years ago -- and I'm amazed that they've persevered all this time.
Best regards,
Howy
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Cadre Resources Ltd.
P.O. Box 2297
Vancouver, B.C. CANADA V6B 3W5
Phone: (250) 447-6641
TSX Venture Exchange-CSL 12g-2(b):82-2911
NEWS RELEASE
Puerto Ordaz, Venezuela
August 15, 2005
Stanley L. Sandner, Chairman and CEO of Cadre Resources Ltd (the “Company”) is pleased to announce that it has received preliminary results from the completed Phase One (sub-bottom profiling, cubication and GPS locations) related to its exclusive permitting process over the entire 24 X 4 kms area of the Macagua Lake portion of the Bajo Caroni near Puerto Ordaz. The said Phase One consisted of some 456 line kms of precise < 1 meter location, sub bottom profiling, mapping and bathometric (water depth) surveying at 100, 200 and 500 meter line spacing. The results of the surveys have revealed one major (>51 million cubic meters) and two lesser (>23 million cubic meters and >25 million cubic meters) deposits containing a total of some 100,000,000 cubic meters (160 million tons) of removable sand & gravel in well located, easily accessible locations. These three areas are known to contain high quality/high quartz granite sand & gravel and higher than River average values in precious metals, titanium and other materials.
The Company has engaged a local, well qualified and highly successful team of technical and environmental experts to work with the Ministry of Environment in presenting the Phase One sub bottom profile data, cubication, location and other information, to confirm the necessity for the removal of said material. Initial indications are that the project plan has been favorably received and is the first step toward a positive Environmental Impact Assessment (EIA).
The next, or Phase Two, stage of the feasibility program requires bulk sampling and analysis of the deposits to determine the true tenor, quality and value of the material in the cubicated deposits. Financing discussions are currently underway and field preparation of the next phase is expected to commence shortly.
The third and final phase of the program is the procurement of permitting to remove the material from the three identified locations. The Company has every confidence this final phase will be accomplished and the full potential of the project will be realized.
Stanley L. Sandner, Chairman and CEO
The statements made in this News Release may contain certain forward looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company.The TSX Venture Exchange or any other regulatory authority has not reviewed, and does not accept, responsibility for the adequacy or accuracy of this news release. |
