Ann: Activities and Cash Flow Report ended 30 Sep, page-5

re: Ann: Activities and Cash Flow Report ende... Will leave Hawsons aside for now as it has been discussed and debated ad infinitum, except to say at least CAP is not sitting on their hands waiting for the cheque.

The tin assets are interesting though. Tin is being used in a huge range of alloys and novel uses (e.g. Indium Tin oxide is the transparent metal oxide used in touch screens)and is certainly not dropping in value. The key in my mind to the project is the novel approach to mining and processing. If a number of smaller assets can be pooled to supply a processing plant that is centrally located the economics start to shape up for the scale required. The processing itself also needs to be a break through in terms of the extraction and metallurgy. Two other companies I have money in (IDM and TNG) I believe are winners because they have invested and succeeded in producing innovative processing plants. This is where a JV may be needed for CAP, partnering up with a group skilled in the development of this type of engineering and metallurgy innovation. If CAP can put the value proposition together regarding the resource assets, I am sure a partner will soon pop up.

Also noting that they have walked away from McDougall now. Mixed feelings here: were they overly optimistic to find something where nobody has been successful before or was this just one of the dice rolls needed before a winner is found?