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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: riversides who wrote (126504)	8/1/2008 12:53:27 AM
From: rubbersoul	Respond to of 312932

From The Rock at StockHouse RE: Assay News..CPQ adds another 2 Million Oz TheRock072 7/31/2008 9:26:48 AM \| \| 306 reads \| Post #23614438 These new assay results add substantial tonnage of high grade ore to that already defined. As always, go to the web site and note the collar locations of these new holes. This is needed in order to correctly interpret the results. Familiarity with drill locations leads to good prediction of results. The main points... East Extension.Further confirmation and expansion of near-surface mineralization in the northeast part of the Represa Zone. Drill holes CR-90 through to CR-92 intersected broad intervals up to 246 meters averaging 0.96 grams gold per tonne, 13.71 grams silver per tonne, 0.32% lead and 0.42% zinc in CR-91, while drill hole CR-89 extended the Represa Zone mineralization a further 100 meters to the east of previous drilling. Note also that these grades to the extreme east are quite good West Confirmation.Additional strong sulphide mineralization in drill holes CR-83 and CR-84 in the southwestern part of the Represa Zone. Drill hole CR-83 intersected 206 meters averaging 1.34 grams gold per tonne, 7.65 grams silver per tonne, 0.11% lead and 0.23% zinc, including 62 meters averaging 3.10 grams gold per tonne, 11.38 grams silver per tonne, 0.16% lead and 0.40% zinc. Note that the sulphide mineralization is now as close as 168 m below the surface, and the high grades confirm earlier sulphide grades west of the fault. The sulphide zone west of the fault now appears to extend from at least 168 m to over 700 m and remains open at depth and towards Don Julio. Note also that these 2 holes cross the fault, are infills, and confirm the posit that the entire zone east of CDR-9 is mineralized, with very high grades. .....Procesding to 43-101. Assay results have now been released for all 92 reverse circulation drill holes at the Camino Rojo project. All reverse circulation and diamond drill hole assay data for the Represa Zone will be incorporated into an initial independent resource estimate, which is expected to be completed this fall. Mineralization at the Represa Zone remains open to the east, west and to depth. The Company is currently compiling and interpreting all geological and assay data from more than 38,000 meters of drilling that has been completed in the Represa-Don Julio areas since the first hole was collared in late October, 2007. .........Don Julio Drilling. The Company has completed its 22 hole phase one diamond drilling program at the Represa-Don Julio Zones, and further assay results will be announced when they are received and compiled. ..... Acquiring More Land Near Don Julio. The Company has initiated negotiations to purchase surface rights in the vicinity of the Represa-Don Julio areas. The Camino Rojo property is 100% owned by Canplats and located in an area of excellent infrastructure, 50 kilometers to the southeast of Goldcorp's Penasquito mine. This is a significant statement, as it implies that the DD holes at Don Julio have had positive results and warrant the acquisition of adjacent lands. If this is the case, it would mean an extra 1000 m of minerlaization west of CRD-9. To put this in context, the currently defined zone at Repressa is 750 m in strike.........................huge additions to gold reserves that could move the asset base to more than 20 million oz. New Targets being Explored and Drilled. The Company is continuing with its reconnaissance-style exploration program on priority targets within the 340,000 hectare (greater than 1,300 square mile) Camino Rojo project. This program includes tensor IP geophysical surveys to the southwest and southeast of the Represa-Don Julio Zones. An initial two-hole diamond drill test of geophysical targets is now underway. Resource Implications The mineralized resource at Repressa has now been extended another 100 m to the east ( ie now 750 m versus 650 m ) and high grades have been confirmed to the west. Based on the previous NR, that zone is now 750m by 350 m by 700 m. Average grades including the gold equivalent for silver ( but not including the base metals ) are now about 1.15 gms/ton. SG is about 2.6 tons per cu m. So, previosly, the gross resource was about 415 million tons ( 650 X350X700 X2.6 ) containing about 15.3 million oz of gold equivalent mineralization. That has now increased to 475 million tons ( 750 X350X700X2.6 ) containing 17.5 million oz of gold equivalent ore..........or adding over 2 million oz. This is an over estimate,as the 43-101 will have a grade cut-off for non-economic ore and waste ore ( the area west of the fault has about 150-200 m of over-burden ). Rough eyeball estimation would suggest about 100 million tons of ore might be non-economic and waste , although the grades would increase. This reduces the estimates to about 11.5 million oz, which increased to 13.9 million oz, with these new data. For the oxide zone at Repressa east of the fault...............where we can be much more confident of the data, as the core data are so consistent....................that zone is now 500 m by 350 m by 200 m , containing 90 million tons of oxide ore almost all of which will be economic and which contains about 3.5 million oz of gold or nearly 0.8 million oz more , as of todays data. So, at $90 per oz of Inferred ore, todays new data add over 2 million oz of gold or about $180 million, or about $2.75 per share. At the very least, we shall end up with over 10 million oz of gold for the currentlt defined mineralized zone, which remains open at depth ,to the east and to the west ,plus the other new targets.