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

To: marcos who wrote (1191)	1/26/2005 12:53:05 PM
From: TrueScouse	Read Replies (2) \| Respond to of 1285

Hi Marcos: I dusted off my huge file with 8 years of Cadre stuff last night and took another look at some of their report, studies, etc. It really is a very interesting and attractive project. I'd forgotten a lot of the stuff but the exciting thing is that they could crank this up very quickly to the 10 million tons level -- which is where they had aimed to be after 3 years into the project. And the potential cash flow at that level is staggering. You commented... <<No mention of either Bateman or Seabulk here, i wonder how involved they will be in the financing of all this ... state of the art dredges and pipelines or conveyor systems do not come cheap>> Don't know about Seabulk but Bateman's still very much involved as consultants. I don't know if they'll use Bateman's equipment. I imagine they'll shop around for the best deal. Bateman doesn't have any percent of the project yet, but the fact that they're still around after all these years is impressive. Last night I found a document from them on the project prepared in 1999. <<They don't intend to do much of the financing by issuing much more stock.' .... this would explain the way so little stock is coming out into the rise here, no doubt ...>> It really is tightly held. Very little stock has been offered at any price since the PR. Last night's review reminded me that it could easily be a 20-bagger (or more) from here if their initial cash flow/profit projections are confirmed by a bankable feasibility study. <<The engineering will be interesting to see, i'm curious as to how they get the material to shore ... the dredge concept is fairly easy to imagine [though there might be space-age surprises there too], but whether they use barges or a pipeline or a conveyor system, is one of my questions .... >> The latest reports I read still talk of a pipeline from each dredge to the shore -- part floating and part submerged to allow shipping to pass. The plan then proposed a slurry pipeline along the shore (for 9 km I think?) to transport material less than 50 mm (2 inches) to the processing plant. There are detailed studies showing the costing of this, estimates of replacement cost of components, etc. -- all a bit out of date but no doubt Bateman has the up to date figures. The dredges they were looking at are capable of going down 50 metres below surface.... Yummy! Most placer gold/diamond deposits get richer with depth and as you approach bedrock. The Caroni stuff at this depth has never been touched. But the secret to the project is securing a buyer for the sand and aggregate, with the gold, diamonds and titanium as credits. Seems amazing to think of these valuable materials as credits, but that just points to the potential scale of the project and the profitability of the aggregates. Maybe CSL will do a deal with the Chinese... lots of concrete needed in Shanghai! Even the domestic (VZ) market could be profitable, given they're still building huge dams on the Caroni/Orinoco. Exciting to see some progress after all these years. Best regards, Howy