iShares 1-10 Year Laddered Government Bond Idx ETF T.CLG

Cumberland arranges $5-million placement

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Cumberland arranges $5-million placement 2006-04-06 10:26 ET - News Release Mr. Kerry Curtis reports CUMBERLAND ANNOUNCES $5 MILLION NON-BROKERED FLOW-THROUGH PRIVATE PLACEMENT Cumberland Resources Ltd., subject to regulatory acceptance, has arranged a non-brokered private placement with CMP Resources of 833,333 flow-through common shares at a price of $6.00 per share for total gross proceeds of $5-million. The gross proceeds from the private placement of flow-through shares will be used for continued exploration of the company's Meadowbank gold project located in Nunavut, Canada, and on other eligible properties. Meadowbank gold project The Meadowbank project is host to Canada's largest pure gold open pit reserves with gold reserves estimated at 2.9 million ounces (1). Cumberland is advancing the Meadowbank project toward open pit production of 330,000 ounces of gold per year over an 8.1-year mine life with an estimated total cash cost of $201 (U.S.) per ounce based on a feasibility study due diligence (2) completed in December, 2005. Peak production is achieved in year 1 with 451,000 ounces produced at an estimated cash cost of $155 (U.S.) per ounce. Final hearings in the permitting process commenced the week of March 27, 2006. Operations from three, shallow open pits are planned to commence during the second half of 2008 provided all permits, licences and financing are received on a timely basis. As reported in Stockwatch March 30, 2006, the company announced that its wholly owned subsidiary, Meadowbank Mining Corporation, had received and accepted a commitment from a group of banks to arrange and underwrite a seven-year limited recourse gold loan facility for up to 420,000 ounces of gold, representing approximately 15 per cent of Cumberland's total proven and probable reserves. At a spot gold price of $600 (Canadian) per ounce, the monetized value of the gold loan would be approximately $250-million (Canadian). MEADOWBANK GOLD PROJECT PRODUCTION PROFILE (2) (December, 2005) Open pit mineral reserve (proven and probable) 2,890,000 ounces (1) Metallurgical recovery 93.2% Mine throughput 2.73 Mtpa Mine life 8.1 years Average annual production rate Years 1 to 4 400,000 ounces Life of mine 330,000 ounces Total cash cost per ounce Years 1 to 4 US$175 Life of mine US$201 Preproduction capital costs US$235-million Cdn$313-million Assumptions include a long-term gold price of $400 (U.S.) per ounce and an exchange rate of 75 U.S. cents per $1 (Canadian). MEADOWBANK GOLD PROJECT Impact of varying gold price and exchange rate on economics (2) (pretax, US$) Exchange Spot Gold rate Cdn$ price (US$ per gold IRR NPV @ 0% (US$) Cdn$1.00) price (%) (US$ M) $400 $0.75 $533 17.6 $242.7 $450 $0.80 $563 18.1 $272.7 $500 $0.85 $588 21.3 $349.0 $550 $0.90 $611 24.1 $425.3 $600 $0.95 $632 26.5 $501.6 MEADOWBANK GOLD PROJECT Impact of varying gold price and exchange rate on economics (2) (pretax, US$) Gold price NPV @ 5% Fuel price (US$) (US$ M) $400 $128.3 Base case $450 $145.7 Current $500 $196.8 Current $550 $248.0 Current $600 $299.1 Current (1) Meadowbank gold reserves (fourth quarter 2005) -- The open pit mineral reserves have been prepared in accordance with NI 43-101. Dr. Mike Armitage, managing director of SRK Consulting (UK) Limited, is the independent qualified person responsible for preparation of stated reserves. (2) Meadowbank feasibility study due diligence (December, 2005) -- As a requirement of bank financing, bank-appointed independent engineers SRK Consulting (UK) completed a due diligence audit of the Meadowbank feasibility study completed in early 2005 by AMEC Americas Ltd. The results from the feasibility study by AMEC are summarized in a technical report, dated March 31, 2005, prepared by AMEC in accordance with the standards of disclosure for mineral projects as defined by National Instrument 43-101. Construction scheduling and capital cost estimation have been prepared by Merit International Consultants Inc. Metallurgical and process testwork was completed by SGS Lakefield Research Ltd. Process design was completed by International Metallurgical and Environmental Inc. and AMEC. Supporting geotechnical engineering, hydrogeological and geochemical studies were completed by Golder Associates Ltd. Both the SRK and AMEC assumptions include a long-term gold price of $400 (U.S.) per ounce and an exchange rate of 75 U.S. cents per $1 (Canadian). We seek Safe Harbor.

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looks like we have to chew through all those "flow through shares" any way it woulds be no surprise to see CLG kick past 8 on further good drills and gold price increases. This deposit seems like low hanging fruit and should be bought ....especially if it continues to grow .