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Gold/Mining/Energy : Cadre Resources (CSL.V) Awaiting production #'s and Financ -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (1188)	1/25/2005 9:38:11 PM
From: TrueScouse	Read Replies (1) \| Respond to of 1285

Claude: I spoke with the company today. As far as they're concerned, getting the letter from the State Governor's planning office is the major step needed. The Governor also works out of Puerto Ordaz and is thus very accessible to the CSL management who are down there. He also is the ex-President of the CVG, the parent authority of EDELCA (which is the electricity authority), so this should help speed up CVG's assistance in initiating the project. It seems that the project could take on quite a high profile (e.g. "national importance") and this would of course be in the best interests of the State Governor. :^) There are actually two things going on here and they could happen together or separately. One is the sampling of the river bed on CSL's concessions, as per their Pre-Feasibility Study plans. The second is the removal of several million tons of sand and gravel near the Puerto Ordaz water outlet -- which is several miles upstream from the dam and "old" sediment rather than recent silting -- i.e. potentially far more valuable. The major advantage of this second step is that it could enable them to ramp up very quickly to the 10 million tons level, as per their original plans -- e.g. in less than a year. i.e. It could dramatically shorten the time from feasibility to full scale operation, due to the needs of the government, and in turn lead to the sort of cash flow I used to dream about when looking at CSL's spreadsheet projections a few years ago! The equipment needed for this second item would be much greater than for the sampling stage and would require a different scale of financing. At this point CSL still owns 100 percent of the project, but this is likely to reduce as the financing is raised and pieces of the project are JV'd. They don't intend to do much of the financing by issuing much more stock. Part of the deal could be granting a small percentage of the project in return for expertise and/or equipment. To speed things up, equipment might also be obtained second-hand and shipped down there instead of developing it from scratch. Lots of possibilities... I asked if CSL has any competition for this project and they assured me that it's well past the tendering stage and CSL is "in the driver's seat". That's as much as I know for now... The move in the stock price has come as a bit of a shock to me. My CSL position is now bigger than either my CKG or WTC positions! I wouldn't have predicted that a few months ago. It would be very nice if CSL eventually went to $6 or $10 like the other two! <LOL!> Best regards, Howy