In
the God-Bless department we reference Abraham Drost of Carlisle Gold (TSX: CGJ).
Mr. Drost,
a geologist from Thunder Bay, Ontario, joined Bruce Reid at the helm
of this Manitoba (Lynn Lake — been there, loved it, own plenty
of CGJ stock) gold and silver project. In the 2 1/2 months since I
crossed paths with him in Toronto, he has lived up to his word: “We are
looking for partners. We are confident we will get them.”
That
happened. AuRico (TSX: AUQ)
came in earlier in the week with cash and expertise: what Canadians call a
three-year earn-in pact. Lynn Lake (I was there one summer surveying each
of Carlisle’s concessions/deposits) was a working gold camp in an
area of that province that sorely lacks employment and good will.
I
can tell you, Mr. Drost and his new partners will offer both of these
with their cash and their work at Farley Lake Mine Deposit, MacLellan Mine
Deposit, Burnt Timber Mine Deposit and Linkwood Deposit, among
others.
TCR advanced
its belief in Carlisle’s promise years ago at far higher prices,
alas; and again, months ago at pennies a share. Lots there, at Lynn Lake,
besides the fishing, and the engineering and reporting requirements
for Carlisle’s properties lay claim to several practical
and economic assessments, compliant resources and other technicals. I won’t go
into all the numbers; except in February we saw this property put up or shut
up. It put up post-tax net present value of $257 million, internal
return 34% at a $1,100 gold price and 5% discount rate.
That
is insanely rich for two of the deposits — open pit naturally.
Even
with CGJ shares tripling these past two or three weeks (as Calibre
Mining did for us in the SAME TCR DYNAMIC?) , the stock, with
the added 19.9 percent dilution of AuRico’s entry, sells for among
THE LOWEST ounce-in-ground equity measures this side of Tatouine.
God
Bless Abraham. I mean, y’all live in Thunder Bay, you work in Manitoba,
you must be close to God.
I
am holding my shares, some bought recently at 3 cents CAD. It is close to 7
cents CAD today.
THE CALANDRA
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