Great Opportunity Here
posted on
Apr 14, 2012 02:35AM
Edit this title from the Fast Facts Section
Hey Guys,
I got this forum started as there wasnt one currently existing...and I think this stock is a hidden gem on the Venture. Theres a few others out there I absolutely love and this is the perfect time to buy. Gold companies, indeed mining companies in general it seems, are way oversold and theres a fundamental disconnect between the current valuation of juniors and the current commodity prices.
Producers dont like taking risks when they can avoid it...and lets face it...with the emerging economies in the world the demand for metals isnt going anywhere but up. Ergo despite these oversold conditions...I see nothing but a buying opportunity because the mining industry has an incredible synergy between the juniors and the producers....quite simply....we find it...they buy it.
Cadillac Mining stands out in my eyes for a plethora of reasons.....this post may take a while to read....but I have to kick start the discussion somehow, and so Im going to not only give a brief run down, Im going to also list the reasons I like this.
First off the management. For all purposes we have a veritable supergroup of management here.....with over 130+ years of experience between 3 guys.....we know theres some serious gears working to turn this engine. Vic has extensive experience, Andre has extensive experience and everybodys favorite...Elmer Stewart has extensive experience...and is also currently the head of CUU and BXX. Lets not forget the run that CUU took from .05 to 2.75 under Elmers leadership......whens the last time you saw a junior break a 1 Billion dollar market cap? BXX is also in posession of the Boss and DOK properties which were hands down the largest properties to be seen at the Cambridge House show in Calgary...the only other one in this category was Schaft Creek. I think its fair to say we're in good hands with all the experience this team compiles.
The second thing I like is the properties. We have 2;
Cadillac Break project...we border the Richmont(RIC) discovery. From my talks with Vic the geology indicates that a sizeable portion of their discovery could actually exist on our claims. The latest drill holes on this property produced by Visible Gold turned out some excellent results, however the intervals were deep. Were going to need to do some continuation drilling in this project for sure...but lets not forget thats we're in the Cadillac-Larder Lake Deformation Zone...which hosts numerous deposits....including the Canadian Malarctic deposit found by Osisko.....about 8.5 million ounces.
The Goldstrike project however is the real winner...I know again from the talks Ive had with management that they feel this is the real gem. The Goldstrike property was abandoned due to low gold prices about a decade ago....it was a series of heap leach operations that simply could no longer remain profitable. Theres 8km of land on this property. The gold was obviously near surface which is an excellent feature for future numbers, in particular CapEx and IRR...however we are still many years out from calculating these. All the same the groundwork has been laid that will already significantly affect them. The last drill program rocketed the stock from .085 to .50 in a matter of hours upon release of the news that RC drilling has interected 1.08 g Au/tonne over 73.1 meters, and 1.25 g Au/tonne over 82.3 meters respectively, with significant intervals of up to 19.8 meters averaging 2.88 g Au/tonne. I remember watching the bids disappear first thing in the morning and the stock went to .14....I went for a coffee and when I was back it was at .37. Whats important to note is that these numbers were drilled from a Single Pad. Theres numerous pads down there. I have also heard comparisons to the Carlin Trend. Whats important to note is also that there was only 567m drilled....there is an upcoming 5000m drill program planned with Core drills and not RC drills.....the difference is that core drilling is more accurate and in general produces higher results due to the core not being all ground up so much in the process. Theres lots of pads down there ladies and gentlemen...and theres lots of room between the pads too. The company is also trying to add another 13 drill holes into their permit on top of the 19 they already have planned.
The third thing I like about CQX is its extremely conservative share structure. Even after this financing is finished....we will remain under 40 million shares fully diluted....and at this point we have an excellent chance of proving up more significant mineralization. We stand here with a very tight company with excellent management and prospects......a few more good drills and this stock is going to fly. With 40 million shares outstanding just think about the potential of forward looking valuation per share. Is there another pop in the cards like we saw on Feb 21st? More likely than not we will see a stream of NR's and hopefully there will be excellent grades and intervals to back them. Remember....what happened on Feb 21st was the results of drilling on one pad...theres several pads on the property...and theres lots of space between the pads that would host very similar proximal geology.
In short....I absolutely love CQX. Mind you people who have read my previous posts on other forums would probably say im biased towards Elmers plays and indeed I am....I also think BXX is a fantastic stock in its own right. Dilution aside the size and grades should easily compensate for any dilution. CUU has over 390 million shares out and look what it did. BXX has just over half of that out and you could fit Bingham Canyon in the property.....couple that with the presence of Moly, a skarn, and the Boss Mine (past producer) unbelievable surface grades.....I see a Trifecta.
CQX just has the best chance to pop quickly and most likely make the most amount of money in the shortest period of time based on the coming round of drilling.
Rogue,