1. There are only 33.4 million shares in issue and the M'Cap is just £54 million, so despite the current 162p share price the company is still significantly discounted. With so few shares in issue the sp is likely to move quickly on the back of good news. Mark Child owns more than 10% of the company so has plenty of 'skin in the game'
2. CNR has 2.4 million oz of high grade gold (over 4g/t) in one location (760k oz of Indicated). All of the vein sets are within 1.5km of a proposed central mill.
3. CNR will be doing 14,000m of fully funded drilling this year to increase the resource to 3 million oz+ and to increase the amount of Indicated ounces via infill drilling. About 5000m has already been completed and the results should now start coming through on a regular basis.
4. The high grade of gold, which will be extractable mainly by open pit, is forecast to be very cheap to produce and CNR's operational costs will be in the lower quartile.
5. CNR already has the biggest resource in mining friendly Nicaragua, despite the presence of B2Gold, which is well established in the country and is also highly profitable. CNR's La India district holds at least 5 million ounces, but probably a lot more and the broker Ocean Equities has suggested that although CNR already has a 2.4 million oz resource, the company has just been' chiselling at the tip of the (gold) iceberg at La India'.
6. A PEA should be produced this year (possibly in H1) and that should confirm a NPV for the project well in excess of £12 per share. A 150k oz pa operation looks feasible at this stage, following the completion of the drilling on the two main vein sets and with costs likely to be well below $500 per oz and a current gold price of $1666 per oz the project is set to be highly economic. Once the PEA is published CNR will be a genuine take-over target for one of the big producers who will not ignore the size of the project and the outstanding economics at a time when they are finding it harder and harder to replenish their reserves - particularly with high grade open pit ounces.
www.gowebcasting.com/events/...ondor-gold-plc/play/stream/6599