Continental Gold (CNL.TO)

swissaustrian

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Like probably most of you guys, I'm frequent listener to the KWN interviews. Eric King starts his interviews with a plug of one of his sponsors.
Amoung them is continental gold (CNL.TO), a medium size gold and silver exploration company with a market cap of roughly $ 800 million. Their properties are located in Colombia's Antioquia province which is certainly not the most peaceful place on earth ( http://en.wikipedia.org/wiki/Antioquia_Department#Armed_conflict ). It seems, though, as if mining companies are not drawn into the conflicts, probably because they're paying all sides to be left alone :snidely:
This is the bad part of the story. Now comes the tempting part. CNL is sitting on insanely high grades of gold and silver. Their flagship property Buritica is an historical mine, as you can see from this quote:

"There is in the Province of Antioquia a mountain called Buriticá, which has turned into reality the dreams of rational people because it is a mountain of gold and it is almost intact.“
- Relacion de Mando, 1729
Here are the numbers that make your jaws drop:
Measured: 40,000 tonnes / Au 55.1 g / Ag 138 g / Ag 70,000 oz / Ag 200,000 oz
:mrt:


For more details see the investor presentation, p. 3
http://www.continentalgold.com/_resources/presentations/CNL_Presentation.pdf

The plan is to produce by 2015, see investor presentation p. 23. They still need final permits for production, it seems they're very confident that they'll get them.

Sprott Asset Management is holding a position in the company, insiders own 22 %.

They have no debt and 80 million in cash.

Here's the chart since the IPO 2 1/2 years ago:


Analyst targets are between 14 and 9.5 USD.

I'm gonna buy a small position for the medium term soon. This stock might go to the moon if they actually manage to implement their plan. I consider this purchase highly speculative, so don't put to much money in if you like the story :wave:
 
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