To: Claude Cormier who wrote (17607 ) 8/6/2006 7:53:45 PM From: Mr. Aloha Respond to Yes, I took a quick look at DNT's Canariaco for a comparison:In the July, 2006, edition of the Gold Newsletter, Brien Lundin refreshes his buy recommendation for Candente Resource Corp., as the market still needs to digest the results of the scoping study on the Canariaco Norte deposit in Peru. Mr. Lundin said buy Candente, now trading at 90 cents, at 36 cents in November, 2002, at 69 cents in March, 2003, and at 88 cents in April, 2006. An investment of $1,000 each time would now be worth $4,705.20. Mr. Lundin feels vindicated by the new scoping study numbers, which determined Canariaco has an inferred potentially open-pittable resource of 489 million tonnes. Mr. Lundin says the study is preliminary and the resources are inferred, so readers should be cautious. However, assuming a copper price of $2 (U.S.) per pound and an 8-per-cent discount rate, the consultants project a total cash flow of $1.9-billion (U.S.) from the mining operation. This translates into a net present value of $595-million (U.S.). With a more conservative $1.50 (U.S.) copper price, the NPV dips to $299-million, which is still over five times the company's market cap. The report only resulted in a 14-per-cent gain in the company's share price -- far too little, says Mr. Lundin. Fellow newsletter writer Jay Taylor was the early bird on Candente, telling readers to buy at 11 cents on Jan. 26, 2002.
