Continental Gold Limited (CNL-T)

Newmont is one of the more active majors out there and their pipeline suggested a need for them to take Conga out of reserve, which was a big impact on their reserve. Colombia would be a new jurisdiction for them, and believes they wanted to take a significant footprint in this, but not do an overall takeover until they were more comfortable with Colombia. The asset is great, but he has some issues with some of the resource, but in terms of some of the development, they have a top-notch COO developing the project and thinks Newmont is very comfortable with it. This looks really good but he is not interested in development plays. Most of his money is going into exploration right now.

A Colombia small explorer or junior producer? He would recommend looking at Continental Gold. They have a really good property in Colombia. Well-managed and have been in the country for quite a while.

Doesn’t think they have any revenues, and he doesn’t like buying into companies that don’t have revenues. The second that he sees no revenues, he automatically stays away. They have quite a bit of money in the bank, but this is not his field of play.

Prefers to be in companies that are in the later stages of building something or are in production. There are permitting issues. Colombia does not have a history of production, although a competitor did get permitting recently. He would hope that it gets permitted in the 3^rd quarter. On its way to becoming a $10 million resource. Once that permit is in hand, he would be surprised if the company actually builds the project, but thinks it will be taken out.

They are very narrow veins. It is a complicated deposit. He has issues with how they are taking some of these narrow vein intersections and projecting them off. It could be a decent play, but he is not comfortable with it.

For a long shot, it is not a bad company. They have a pretty big find in Colombia. Thinks it is tracking almost 25 million ounces and not showing any kind of value right now. If you want an exploration play with good upside, this would definitely be one. This is exploration and he feels there is way less risk on the producers right now.

Likes it. One of the highest grade, largest deposits in Columbia right now. 5 million oz resource that will get bigger and be in production in the next couple of years. Well financed to execute on their current strategy.

Not for widows and orphans. Had a nice bounce back. With gold price moving up a lot of people are getting out. Companies have been oversold and it is just bouncing back here. BMO raised rating so it popped. Well managed and costs are low. If silver and gold moves up there will be a lot of torque.

Columbia – one of the best places in South America to be. 3 million oz deposit. High Grade. Small cap-X footprint. Being prepared for ultimate sale, he thinks. Strong balance sheet.