October 04, 2008 06:03 pm
|Price ||C$1.51 ||MCap: C$85.6M ||On: 10/2/08 |
|History ||Rec: C$3.00, 4/08 ||Loss: 49.7% ||52-week: C$0.23 - C$5.43 |
|Shares ||SO: 56.7M ||FD: 64.7M ||As of: 6/18/08 |
|Warrants ||3.5M ||C$3.00 ||2/12/10 |
|Options ||4.5M ||Avg. C$0.70 ||Avg. Exp: 4.4 years |
|Cash ||C$5M ||Burn: C$350,000/mo ||As of: 9/08 |
—CPQis a screaming Best Buy at current prices, being one of the few juniorswith a 100%-owned project that looks almost ideal for a low-cost, openpit operation. The flagship Camino Rojo project has gone from nothing toan exceptionally consistent mineralized zone with clearmulti-million-ounce potential. And that potential should be quantifiedin a first-pass 43-101-compliant resource calculation withinapproximately one month. Given the high degree of consistency of thedrill results (the latest of which included 445.3 meters of 0.73 g/tgold), we expect the resource to include Measured & Indicated ouncesas well as Inferred.
This should be followed by more drillresults (the main zone remains open to the east, west and at depth) andearly metallurgy results, the latter being very important to helpquantify the value of the resources Canplats delivers.
We couldsay more, but the short version is that this is just one of those nearlyideal projects that makes it worth a lot – a fact we don’t think themajor mining companies will ignore for long. These shares area must foreveryone’s portfolio. We may even buy more if the price remains the sameafter we publish this recommendation.