Post by
kahlua on Apr 10, 2003 6:36pm
Canaccord Capital - Daily Letter (April 10)
What did I just say about promotion...LOL!
COMPANY UPDATES
CUMBERLAND RESOURCES (CBD : TSX : C$2.42) - SPECULATIVE BUY - 12-MONTH
TARGET PRICE: C$3.75
Graeme Currie
Comment: Cumberland reports revised resource estimates for the Vault zone
Cumberland has reported the first of what we expect will be several
announcements regarding resource revisions for the Vault, North Portage,
Connector and Third Portage zones on the company's 100% held Meadowbank
gold project in Nunavut. The program, as we have previously commented,
also identified a new zone, the Connector, which should allow for the
unification of the Third Portage and North Portage pits into one larger
pit. The first of the revisions was released yesterday. The Vault zone, on
which previous estimates calculated total resources of 936,000 ounces, has
climbed by about 20% to 1.15 million ounces. We anticipate that prior to
mid May, revised estimates for the North Portage and Connector zones will
be released. Third Portage figures could be available late in the quarter,
though the company did indicate that there could be a delay in reporting
revisions for this zone, as there was only nominal drilling at Third
Portage in 2002 and there is additional feasibility stage drilling planned
for this zone in the current quarter. We anticipate that with the
Connector zone addition, the North and Third Portage pits will merge to
one. Cumberland continues to provide, in our view, very low-cost exposure
to a current net 4.1 million ounces of gold in situ. The shares remain a
SPECULATIVE BUY. A target value of US$20.00/ounce, in the current gold
price environment, is a reasonable minimum target. This would equate to a
share price of about $3.75 inclusive of working capital.