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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bat Man who wrote (6650)	1/7/2003 1:29:26 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 39344

Elmer, Simply said, CKG has the management, exploration team, the money and at least one world class target. True CKG do not have gold reserves. But they will discover another deposit. It is only a matter of time. With $25M in the bank, they will spend $1-$1.5M every year on grass roots exploration project until they hit the big one where they can spend more. This means they will do it almost forever as they basically spend what they earn on their cash. And keep in mind that Reifel has one of the best exploration team in Mexico and Central America with numerous mining contacts mainly in Mexico. True La Juliana could be another Luicho. But Reifel will not spend too many millions to find that if it is the case. He will rapidly move on to the next target. We have learn to know how Reifel operates. He is lean and mean. He does not spend on promotion. He discovers deposits instead. More than 6M ounces of high grade stuff in 6 years. Two major deposits acquired by Glamis and going into production: no small feat. Furthermore, let say we have a repeat of 1996-1999 and gold puts in another final leg down. Look what happen to FGX in 1996-1999. Look how it stood up compared to most other with deposits. Never dropped much below $5. CKG stock offers you a floor which I believe is currently above $2.50. Many other stock with reserves that are just starting to be economic at $325-$350 and silver $4.80 (MFL, CBD, WTC and others..) would fall again sub $1.00 in the eventuality of a renewed bear market. I admit this is not a high probability. But we never know. Yes IMG/RPD is excellent company with reserves and growing cash flows. Love them. But they will grow mainly with gold prices. Adding 2M ounces to a company with a $1 billion market cap will not change a lot. But adding 2M ounces of high grade gold to CKG will give you a 500% capital gain even if gold drops from here. That is why I feel my money is on good hands with CKG stock. I trust the people and their ability to discover gold. In short, CKG is not the most leverage exploration play, but it is the best combination of security and exploration potential.