CBH - CBH Resources
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Here is a little of what the announcement was about......................................
Sydney - Thursday - October 4: (RWE Aust Business News) - CBH
Resources (ASX:CBH) has intersected strong mineralisation within the
Southern Ore Zone and the West Iodide lode at the Mineral Hill, located
near Condobolin in central NSW.
High grade copper-gold mineralisation, 5.0m at 3.5g/t gold and
3.4 per cent copper has been intersected 300m along strike from the
Southern Ore Zone, one of series of steeply west dipping ore zones mined
by Triako for copper-gold from 1989 until 2005.
At the time of closure of the Mineral Hill mine, the total
resource inventory at the SOZ was quoted at 182,600t at 7.4g/t gold,
1.3pc copper with good potential for expansion.
Recent drilling by CBH has tested the northern extension of the
SOZ system between the old SOZ underground workings and those of the
Jacks Hut workings and appears to have intersected a new copper-gold lens
approximately 300m north of the SOZ workings, 380m from the surface and
below the main underground cross cut that provides access to the area.
The intersection is very encouraging and indicates the strong
likelihood for the discovery of new ore blocks to support the proposed
reactivation of the Mineral Hill operation.
Follow-up surface drilling is planned.
Drilling has also progressed at West Iodide, immediately to the
south of the Jacks Hut workings, recording good visual lead-zinc
mineralisation within an area identified as a strong base metal target.
CBH is testing this mineralisation as a possible additional ore
source for mine development.
CBH shares were down 0.5 to 50.5c.
ENDS
!END
Sydney - Thursday - October 4: (RWE Aust Business News) - CBH
Resources (ASX:CBH) has intersected strong mineralisation within the
Southern Ore Zone and the West Iodide lode at the Mineral Hill, located
near Condobolin in central NSW.
High grade copper-gold mineralisation, 5.0m at 3.5g/t gold and
3.4 per cent copper has been intersected 300m along strike from the
Southern Ore Zone, one of series of steeply west dipping ore zones mined
by Triako for copper-gold from 1989 until 2005.
At the time of closure of the Mineral Hill mine, the total
resource inventory at the SOZ was quoted at 182,600t at 7.4g/t gold,
1.3pc copper with good potential for expansion.
Recent drilling by CBH has tested the northern extension of the
SOZ system between the old SOZ underground workings and those of the
Jacks Hut workings and appears to have intersected a new copper-gold lens
approximately 300m north of the SOZ workings, 380m from the surface and
below the main underground cross cut that provides access to the area.
The intersection is very encouraging and indicates the strong
likelihood for the discovery of new ore blocks to support the proposed
reactivation of the Mineral Hill operation.
Follow-up surface drilling is planned.
Drilling has also progressed at West Iodide, immediately to the
south of the Jacks Hut workings, recording good visual lead-zinc
mineralisation within an area identified as a strong base metal target.
CBH is testing this mineralisation as a possible additional ore
source for mine development.
CBH shares were down 0.5 to 50.5c.
ENDS
!END
doogie_goes_off
disbelieve if you can
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Yep chicken they are cheap, and why wouldn't they be? They have managed to accumulate $200M worth of debt and it remains to be seen if they can produce enough sales to service this debt and wipe it out, I'd make them a long term hold, I don't see a rocketing price on this one.
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Can they use Gold to pay off that debt? Excerpt from todays announcement.
The Company advises that screen fire assay results have now been received for the
previously announced intersection in hole CNYDD017 resulting in a substantial increase
in gold grade to 16.7m @ 80.6gpt Au (uncut), including an outstanding interval of 5.9m
@ 144.0gpt Au (uncut), 1.8% Cu, 18.2% Pb, 23.9% Zn and 77gpt Ag. This intersection is
located approximately 30m below the original discovery hole for Hera, PNDD002 (8.6m
@ 38.6gpt Au (uncut), 1.7% Cu, 10.5% Pb, 7.0% Zn and 68gpt Ag), and confirms the
presence of a very high grade gold and base metal shoot in the central section of the
deposit.
In addition, assay results have also been returned for a further two holes with good gold
values recorded in both. CNYDD016A recorded 1.5m @ 20.7gpt Au*, 6.5% Pb, 11.4% Zn
and 45gpt Ag, whilst CNYDD014 intersected 13.0m @ 3.6gpt Au*, 2.5% Pb, 3.7% Zn,
including 3.8m @ 8.7gpt Au*, 4.0% Pb, 5.5% Zn and 14gpt Ag (Figure 1).
The Company advises that screen fire assay results have now been received for the
previously announced intersection in hole CNYDD017 resulting in a substantial increase
in gold grade to 16.7m @ 80.6gpt Au (uncut), including an outstanding interval of 5.9m
@ 144.0gpt Au (uncut), 1.8% Cu, 18.2% Pb, 23.9% Zn and 77gpt Ag. This intersection is
located approximately 30m below the original discovery hole for Hera, PNDD002 (8.6m
@ 38.6gpt Au (uncut), 1.7% Cu, 10.5% Pb, 7.0% Zn and 68gpt Ag), and confirms the
presence of a very high grade gold and base metal shoot in the central section of the
deposit.
In addition, assay results have also been returned for a further two holes with good gold
values recorded in both. CNYDD016A recorded 1.5m @ 20.7gpt Au*, 6.5% Pb, 11.4% Zn
and 45gpt Ag, whilst CNYDD014 intersected 13.0m @ 3.6gpt Au*, 2.5% Pb, 3.7% Zn,
including 3.8m @ 8.7gpt Au*, 4.0% Pb, 5.5% Zn and 14gpt Ag (Figure 1).
Great news for CBH.....and also they published today their figures....by looks of things reading their report...CBH are going places....and to me it looks as if this share will become bluechip....new mine next year...whilst this boom is happening....its all go there...and the $200million...has not been spent yet....their new mines and projects are all looking first class....read their financial report...looking good...one to watch...and their latest drill result...looking good...wish SBM would find a 80gpt AU find....I like CBHs story..one in the making..DYOR
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200 mill$ debt ? read the AFS a wee more carefully
add the Iron Ore holdings and you will see why i think CBH is undervalued...maybe they should do a rock chip sample and make an announcement price should triple like IRM today.
Constance Range
The Constance Range iron ore project is located in the Lawn Hill district of north-west Queensland, 45 km west of Zinifex’s Century mine, and 220 km northwest of Mt Isa. The company is earning a 50% interest in the property by completing a bankable feasibility study.
The project area was extensively explored by BHP between 1956 and 1963, with work completed including over 200 drill holes, sinking of two exploration shafts, underground mining trials and bulk sample extraction for
beneficiation test work. Significant sedimentary hematite mineralisation was identified with the iron ore horizons ranging from 2 to 8 metres in thickness as gently dipping beds and present over a strike length of more than 30 kilometres within the project exploration licence. BHP identified a mineralised body of 245 Mt grading 51.3% Fe and 9.4% silica (SiO2) for one of three deposits outlined. Confirmation drilling and initial metallurgical test work were underway at the end of the year.
add the Iron Ore holdings and you will see why i think CBH is undervalued...maybe they should do a rock chip sample and make an announcement price should triple like IRM today.
Constance Range
The Constance Range iron ore project is located in the Lawn Hill district of north-west Queensland, 45 km west of Zinifex’s Century mine, and 220 km northwest of Mt Isa. The company is earning a 50% interest in the property by completing a bankable feasibility study.
The project area was extensively explored by BHP between 1956 and 1963, with work completed including over 200 drill holes, sinking of two exploration shafts, underground mining trials and bulk sample extraction for
beneficiation test work. Significant sedimentary hematite mineralisation was identified with the iron ore horizons ranging from 2 to 8 metres in thickness as gently dipping beds and present over a strike length of more than 30 kilometres within the project exploration licence. BHP identified a mineralised body of 245 Mt grading 51.3% Fe and 9.4% silica (SiO2) for one of three deposits outlined. Confirmation drilling and initial metallurgical test work were underway at the end of the year.
New upgrade from huntley yesterday 74 cents a share 
valuation rises 23% to 74c a share. CBH benefits strongly from higher near term lead forecasts coupled with more favourable long term lead and zinc assumptions.CBH owns the Endeavor zinc/lead mine near Cobar in NSW with annual capacity of 65kt of zinc and 35kt of lead in concentrates. Reserves support a 10 years plus. Life has extended through exploration and the acquisition of Hera. The Panorama opencut in WA is set to start early 2009 with 16ktpa of copper and 40ktpa of zinc for at least seven years. Output of 30ktpa of zinc and 20ktpa of lead is expected from the Rasp mine in Broken Hill from mid 2008. Management aims to mould CBH into a mid tier miner via acquisitions and organic growth. The balance sheet is sound with $70m cash. Suitable for risk tolerant investors seeking growth but understanding commodity price volatility.
valuation rises 23% to 74c a share. CBH benefits strongly from higher near term lead forecasts coupled with more favourable long term lead and zinc assumptions.CBH owns the Endeavor zinc/lead mine near Cobar in NSW with annual capacity of 65kt of zinc and 35kt of lead in concentrates. Reserves support a 10 years plus. Life has extended through exploration and the acquisition of Hera. The Panorama opencut in WA is set to start early 2009 with 16ktpa of copper and 40ktpa of zinc for at least seven years. Output of 30ktpa of zinc and 20ktpa of lead is expected from the Rasp mine in Broken Hill from mid 2008. Management aims to mould CBH into a mid tier miner via acquisitions and organic growth. The balance sheet is sound with $70m cash. Suitable for risk tolerant investors seeking growth but understanding commodity price volatility.Go to www.kitcometals.com......the word is lead will rise even further in price risen another 3.5% overnight...and more to come...in their report..their cash position is $234million....so even if they owe $200million...the company looks in a very stable financial position now and looks as if they are doing all the right moves to grow into a much larger concern...any one interested should take the time and read their latest report...which was published 2 days ago...I bought 100k shares and happy to hold...DYOR
Sean K
Moderator
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Hi Chicken. Grossly undervalued? Perhaps you could provide just a smidgen of analysis to back it up instead of 'read the report'.
Just read the report of what is in the pipeline and where the company is heading and their cash position..all are positive...assets in todays price are in the $16billion region....give a couple or take a couple billions...and a market cap of $450million speaks for itself...read the report and do some figuring....its all there for everyone to work out...Hi Chicken. Grossly undervalued? Perhaps you could provide just a smidgen of analysis to back it up instead of 'read the report'.
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I bit of good news today regarding the backfill of Endeavour mine. Stong finish to today's trading adding a cent right at closing. Over 10 million shares traded.
It will be interesting to see if the stock continues to rally up to next week's quarterly report on this release.
I had a sell at 56 cents on CBH last week and removed it friday, willing to give it one more chance. I've been very patient with this share and although have bought and sold it many times since it was in the 30 cent bracket and been happy with the results, but a dividend or some long term support over the 60c mark would be reassuring to hold this for the longer term..
Opinions?
Cheers,
It will be interesting to see if the stock continues to rally up to next week's quarterly report on this release.
I had a sell at 56 cents on CBH last week and removed it friday, willing to give it one more chance. I've been very patient with this share and although have bought and sold it many times since it was in the 30 cent bracket and been happy with the results, but a dividend or some long term support over the 60c mark would be reassuring to hold this for the longer term..
Opinions?
Cheers,
michael_selway
Coal & Phosphate, thats it!
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Its not bad i guess, zinc and lead will continue to do well
Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 4.7 8.9 5.1 4.8
DPS 0.0 3.0 5.5 0.5
thx
MS
I was reading in the Fin Review yesterday that perilya (PEM) is looking to make a moderate sized acquisition in the next 6-12 months. I threw out the article yesterday so can not exactly quote it now. If anyone else has the article would they mind posting up a quote? In short, they mentioned a few companies including JML, CUO and CBH.
CBH is the most obvious candidate given the synergies an acquisition could create; they both have significant operations, development and exploration in West NSW, such as Broken Hill and the Cobar Basin. Furthermore CBH has long life mines in this Western NSW area, a massive low cost/high grade Cu-Zn open pit in WA scheduled to come on line in 2009 and plenty of projects around Australia currently under evaluation.
Nevertheless, you would think that CBH would have to be up the top of their shopping list. The only problem that I can see that would stop PEM choosing CBH over other candidates is the fact that Toho Zinc has a 25% stake in the company and could potentially block or make it difficult to acquire the company.
CBH is the most obvious candidate given the synergies an acquisition could create; they both have significant operations, development and exploration in West NSW, such as Broken Hill and the Cobar Basin. Furthermore CBH has long life mines in this Western NSW area, a massive low cost/high grade Cu-Zn open pit in WA scheduled to come on line in 2009 and plenty of projects around Australia currently under evaluation.
Nevertheless, you would think that CBH would have to be up the top of their shopping list. The only problem that I can see that would stop PEM choosing CBH over other candidates is the fact that Toho Zinc has a 25% stake in the company and could potentially block or make it difficult to acquire the company.
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september report:
A record after tax profit for the financial year ended 30 June 2007 of $38.7 million was announced.
This represents a 356% increase in net profit after tax compared to the previous financial year.
Profit before tax for the same period was $56.2 million on operating revenues of $269.5 million. No tax was provided for although a tax expense of $17.6 million was recorded. At 30 September 2007 cash and short term deposits totalled $219.4 million (30 June 2007 $238 million).
Capital investment during the quarter totalled $33.1 million with accelerated mine development and paste fill at Endeavor, development at Panorama and Rasp Mine projects accelerating and evaluation of new projects at Hera, Mineral Hill and Sorby Hills.
50c miner which can finance its own exploration and for the most part development. It may happen tomorrow or next year but it will push way past what its current SP is
TRY getting that return at a bank
A record after tax profit for the financial year ended 30 June 2007 of $38.7 million was announced.
This represents a 356% increase in net profit after tax compared to the previous financial year.
Profit before tax for the same period was $56.2 million on operating revenues of $269.5 million. No tax was provided for although a tax expense of $17.6 million was recorded. At 30 September 2007 cash and short term deposits totalled $219.4 million (30 June 2007 $238 million).
Capital investment during the quarter totalled $33.1 million with accelerated mine development and paste fill at Endeavor, development at Panorama and Rasp Mine projects accelerating and evaluation of new projects at Hera, Mineral Hill and Sorby Hills.
50c miner which can finance its own exploration and for the most part development. It may happen tomorrow or next year but it will push way past what its current SP is
TRY getting that return at a bank
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rasp decline is moving very well...and i should know ! CBH is still joined at the hip with Zinc and the Endeavour mine and its past history. Zinc prices have pushed Endeavour way past the marginal call and with the increase in lead CBH is way in front as the Sept ann calls it.
only a matter of time
only a matter of time
CBH Resources - An Exceptional Growth Profile
26/10/2007 By: Ted Leschke
Investors will be hard pressed to find an established Australian metals producer with a growth profile as strong as that of CBH Resources (CBH). CBH is a minerals exploration, development and production company, primarily interested in base metals projects in western New South Wales and Western Australia .
CBH is set to grow from a one operating mine to a three operating mine company within 3 years. CBH’s currently operating zinc-lead mine, Endeavor, is now back to design capacity, the Rasp in Broken Hill is to begin zinc-lead production early 2009 and the Panorama mine is to begin zinc-copper production in early 2010.
This will see metal output grow 260% from 64kt in FY07 to 230ktpa in zinc equivalent terms.
With $219 million in cash at 30 September, CBH is well placed to fully fund the development of Rasp and Panorama.
CBH also has a number of “hidden” assets including a ship loading facility in Newcastle , the dormant Mineral Hill mine & plant as well as an earn-in interest in an iron ore project in north Queensland .
Endeavor – Zinc & Lead Producer
Endeavor is an established underground zinc/lead/silver mining operation in central New South Wales , 46 kilometres north of Cobar and 700 kilometres east of Sydney .
Operations commenced in 1983 and comprise an underground mine accessed by both decline and haulage shaft, and serviced by a concentrator, drying, storage and rail facilities. CBH purchased the Endeavour mine for $10m and paid $6.6m for the Newcastle Port ship loader in September 2003.
Mining operations were seriously set back after a large stope failure in October 2005. Whilst mining operations have now recovered, metal output is yet to completely recover to the same as previous levels due to lower grades of ore mined at depth. Despite this, operation economics have improved significantly with a significant rise in zinc and lead prices over the last few years.
Given that mining at Endeavor now has reach depths of 900m CBH has undertaken a number on initiatives that will enable mine rates of 1Mtpa of ore be maintained as well as keeping operating costs and metal recoveries in check.
Rasp Mine - Zinc & Lead Development
CBH also holds mining title (CML 7) over the central 3.8 kilometres of the Broken Hill lode system containing substantial tonnages of unmined zinc, lead and silver mineralisation. The Western Mineralisation, a zinc rich lode horizon, has been the focus of a detailed evaluation programme for a new mine development.
This new mine, the Rasp Mine, will have the benefits of significant existing infrastructure. A feasibility study has been completed and now requires board approval.
Final project approvals are also due within 6 months and commencement of plant construction is estimated to occur by May 2008. Commissioning is scheduled for late 2008 with first production early in 2009.
See Part 2
26/10/2007 By: Ted Leschke
Investors will be hard pressed to find an established Australian metals producer with a growth profile as strong as that of CBH Resources (CBH). CBH is a minerals exploration, development and production company, primarily interested in base metals projects in western New South Wales and Western Australia .
CBH is set to grow from a one operating mine to a three operating mine company within 3 years. CBH’s currently operating zinc-lead mine, Endeavor, is now back to design capacity, the Rasp in Broken Hill is to begin zinc-lead production early 2009 and the Panorama mine is to begin zinc-copper production in early 2010.
This will see metal output grow 260% from 64kt in FY07 to 230ktpa in zinc equivalent terms.
With $219 million in cash at 30 September, CBH is well placed to fully fund the development of Rasp and Panorama.
CBH also has a number of “hidden” assets including a ship loading facility in Newcastle , the dormant Mineral Hill mine & plant as well as an earn-in interest in an iron ore project in north Queensland .
Endeavor – Zinc & Lead Producer
Endeavor is an established underground zinc/lead/silver mining operation in central New South Wales , 46 kilometres north of Cobar and 700 kilometres east of Sydney .
Operations commenced in 1983 and comprise an underground mine accessed by both decline and haulage shaft, and serviced by a concentrator, drying, storage and rail facilities. CBH purchased the Endeavour mine for $10m and paid $6.6m for the Newcastle Port ship loader in September 2003.
Mining operations were seriously set back after a large stope failure in October 2005. Whilst mining operations have now recovered, metal output is yet to completely recover to the same as previous levels due to lower grades of ore mined at depth. Despite this, operation economics have improved significantly with a significant rise in zinc and lead prices over the last few years.
Given that mining at Endeavor now has reach depths of 900m CBH has undertaken a number on initiatives that will enable mine rates of 1Mtpa of ore be maintained as well as keeping operating costs and metal recoveries in check.
Rasp Mine - Zinc & Lead Development
CBH also holds mining title (CML 7) over the central 3.8 kilometres of the Broken Hill lode system containing substantial tonnages of unmined zinc, lead and silver mineralisation. The Western Mineralisation, a zinc rich lode horizon, has been the focus of a detailed evaluation programme for a new mine development.
This new mine, the Rasp Mine, will have the benefits of significant existing infrastructure. A feasibility study has been completed and now requires board approval.
Final project approvals are also due within 6 months and commencement of plant construction is estimated to occur by May 2008. Commissioning is scheduled for late 2008 with first production early in 2009.
See Part 2
Part 2
Panorama - Zinc & Copper Development
The Panorama Project is located 160km by road from Port Headland, 100 kilometres of which is a sealed highway. A concentrate loading facility is present at Port Headland.
The project is based on developing the Sulphur Springs copper-zinc ore body. Additional resources have been identified along strike from Sulphur Springs and these are being evaluated as additions. In total there are six mineralised copper-zinc deposits along a 20km strike length with exploration in progress targeting new resources for the Panorama Project.
A bankable feasibility study has been completed and environmental approvals are being finalised for a 1.5mt pa open-cut mine and ore processing plant to produce 20ktpa of copper and 50ktpa of zinc. Project capex is estimated at $213 million. Site construction is scheduled to commence in the June quarter 2008 and commissioning of the project is scheduled for the second half of 2009.
Open pit reserves stand at 10mt 1.5% Cu, 3.7% Zn and17g/t Ag. There are additional resources below the open cut and along strike that will add to the project life. CBH is currently earning a 60% interest in the Kangaroo Caves deposit (6.3mt @ 3.3% Zn & 0.5% Cu) through the expenditure of $4m on exploration of which $1.25 milliion is outstanding.
Mineral Hill – Copper & Zinc Evaluation
The Mineral Hill mine, acquired through the takeover of Triako, was placed on care and maintenance in September 2005. Between 1995 and 2005 the mine produced 369koz gold and 21kt of copper in concentrates.
The mill has the capacity to treat 200ktpa. CBH is currently investigating the options to bring this operation back into production treating underground developed copper reserves with possible extensions to zinc and lead resources and mineralisation. An upgraded Mineral Hill operation would provide the processing capability to treat ore from the Hera Deposit located 100km to the north.
This resource currently contains 2.2mt @ 3.4g/t gold, 4.2% zinc and 0.2% copper and 18g/t silver. Recent drilling has resulted in a number of ore grade intercepts which may enhance resources.
Napier Range & Sorby Hills – Zinc & Lead Exploration
CBH is managing a joint venture with Teck Cominco WA to explore and develop zinc-lead-silver deposits in the Napier Ranges in northern Western Australia . The project is located 150 km east of Derby within the Lennard Shelf zinc-lead district, a west-north-west trending belt of shallow marine sediments hosting Mississippi Valley Type (MVT) deposits containing pre-mined resources of >40Mt @ +10% Zn equivalent.
The Sorby Hills project was also acquired through the takeover of Triako by CBH. CBH now has a 100% interest in this undeveloped lead-zinc deposit.
The project has published resources (non-JORC compliant) of approximately 10Mt @ 6.4% lead, 0.9% zinc and 66g/t silver. The bulk of the resource occurs within thirteen discrete pods of which the largest is estimated to be 2.8Mt @ 6.6% lead, 0.6% zinc and 119 g/t silver.
Constance Range – Iron Ore Exploration
CBH is earning a 50% interest in Constance Range iron ore project by completing a BFS. The project is located in the far north west of Queensland , adjacent to the Northern Territory border and 45km west of the Century mine.
More than fifty years ago the iron ore deposits were identified and drilled by BHP which estimated a non JORC compliant resource of approximately 250Mt @ 52% Fe.
CBH has almost completed a diamond drilling programme to obtain mineralised samples for metallurgical test work (grinding and WHIMS) and to allow the generation of a JORC compliant resource. There is no reason to expect that the resource will be much different to BHP's figures given that BHP drilled over 200 holes in the area and sunk two exploration shafts.
Given the low Fe grade this project will require a concentrator and a transportation solution will be have to be worked out. This asset would be prime candidate for a spin-off. This project could be worth around $150 million undeveloped or $75 miliion (7cps) for CBH's share - not a big kicker, but in this market iron ore developments are attracting attention.
Panorama - Zinc & Copper Development
The Panorama Project is located 160km by road from Port Headland, 100 kilometres of which is a sealed highway. A concentrate loading facility is present at Port Headland.
The project is based on developing the Sulphur Springs copper-zinc ore body. Additional resources have been identified along strike from Sulphur Springs and these are being evaluated as additions. In total there are six mineralised copper-zinc deposits along a 20km strike length with exploration in progress targeting new resources for the Panorama Project.
A bankable feasibility study has been completed and environmental approvals are being finalised for a 1.5mt pa open-cut mine and ore processing plant to produce 20ktpa of copper and 50ktpa of zinc. Project capex is estimated at $213 million. Site construction is scheduled to commence in the June quarter 2008 and commissioning of the project is scheduled for the second half of 2009.
Open pit reserves stand at 10mt 1.5% Cu, 3.7% Zn and17g/t Ag. There are additional resources below the open cut and along strike that will add to the project life. CBH is currently earning a 60% interest in the Kangaroo Caves deposit (6.3mt @ 3.3% Zn & 0.5% Cu) through the expenditure of $4m on exploration of which $1.25 milliion is outstanding.
Mineral Hill – Copper & Zinc Evaluation
The Mineral Hill mine, acquired through the takeover of Triako, was placed on care and maintenance in September 2005. Between 1995 and 2005 the mine produced 369koz gold and 21kt of copper in concentrates.
The mill has the capacity to treat 200ktpa. CBH is currently investigating the options to bring this operation back into production treating underground developed copper reserves with possible extensions to zinc and lead resources and mineralisation. An upgraded Mineral Hill operation would provide the processing capability to treat ore from the Hera Deposit located 100km to the north.
This resource currently contains 2.2mt @ 3.4g/t gold, 4.2% zinc and 0.2% copper and 18g/t silver. Recent drilling has resulted in a number of ore grade intercepts which may enhance resources.
Napier Range & Sorby Hills – Zinc & Lead Exploration
CBH is managing a joint venture with Teck Cominco WA to explore and develop zinc-lead-silver deposits in the Napier Ranges in northern Western Australia . The project is located 150 km east of Derby within the Lennard Shelf zinc-lead district, a west-north-west trending belt of shallow marine sediments hosting Mississippi Valley Type (MVT) deposits containing pre-mined resources of >40Mt @ +10% Zn equivalent.
The Sorby Hills project was also acquired through the takeover of Triako by CBH. CBH now has a 100% interest in this undeveloped lead-zinc deposit.
The project has published resources (non-JORC compliant) of approximately 10Mt @ 6.4% lead, 0.9% zinc and 66g/t silver. The bulk of the resource occurs within thirteen discrete pods of which the largest is estimated to be 2.8Mt @ 6.6% lead, 0.6% zinc and 119 g/t silver.
Constance Range – Iron Ore Exploration
CBH is earning a 50% interest in Constance Range iron ore project by completing a BFS. The project is located in the far north west of Queensland , adjacent to the Northern Territory border and 45km west of the Century mine.
More than fifty years ago the iron ore deposits were identified and drilled by BHP which estimated a non JORC compliant resource of approximately 250Mt @ 52% Fe.
CBH has almost completed a diamond drilling programme to obtain mineralised samples for metallurgical test work (grinding and WHIMS) and to allow the generation of a JORC compliant resource. There is no reason to expect that the resource will be much different to BHP's figures given that BHP drilled over 200 holes in the area and sunk two exploration shafts.
Given the low Fe grade this project will require a concentrator and a transportation solution will be have to be worked out. This asset would be prime candidate for a spin-off. This project could be worth around $150 million undeveloped or $75 miliion (7cps) for CBH's share - not a big kicker, but in this market iron ore developments are attracting attention.
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