Re: CAG - Cape Range Wireless
the project being located in Indonesia they don't need to comply with the JORC code, apparently they have a resource defined by the USGS method, which is being checked now before being released in the near future, link below.
http://www.jorc.org/pdf/1980 usgs-usbm circular 831.pdf
the most important things to consider when looking at a coal project like CAG's are:
- location, which is in the heart of coal central in indonesia
- infrastructure, only 30km from port with ready made road links
- resource size, clearly large enough to support mining operation
- offtake agreement, CAG via the acquisition has ready made production sale agreement with PT PLN which is Indonesia's national electricity company
- exploration upside, access to adjacent 13250 hectares of exploration grounds
- time till production, as per announcement mining activities to commence by the 15 July 2008 with contractor selection
underway.
CAG seems to have most of the bases covered, but as usual in the spec end of things it will come down to the company executing their stratergy.
I'm with Young_Trader on this one, the recent announcement will lead to a fundamental re-rating of the shareprice on the back of CAG getting the indonesian coal project up and running.
And from a momentum point of view, it was a very bullish close this afternoon and if we break 3.6c tommorow it wouldn't surprise if the shareprice quickly broke through the 4c barrier on the back of a technical breakout and the red hot coal sector.
the project being located in Indonesia they don't need to comply with the JORC code, apparently they have a resource defined by the USGS method, which is being checked now before being released in the near future, link below.
http://www.jorc.org/pdf/1980 usgs-usbm circular 831.pdf
the most important things to consider when looking at a coal project like CAG's are:
- location, which is in the heart of coal central in indonesia
- infrastructure, only 30km from port with ready made road links
- resource size, clearly large enough to support mining operation
- offtake agreement, CAG via the acquisition has ready made production sale agreement with PT PLN which is Indonesia's national electricity company
- exploration upside, access to adjacent 13250 hectares of exploration grounds
- time till production, as per announcement mining activities to commence by the 15 July 2008 with contractor selection
underway.
CAG seems to have most of the bases covered, but as usual in the spec end of things it will come down to the company executing their stratergy.
I'm with Young_Trader on this one, the recent announcement will lead to a fundamental re-rating of the shareprice on the back of CAG getting the indonesian coal project up and running.
And from a momentum point of view, it was a very bullish close this afternoon and if we break 3.6c tommorow it wouldn't surprise if the shareprice quickly broke through the 4c barrier on the back of a technical breakout and the red hot coal sector.