A snap shot of the value for CJO1) MexicoSan Anton resource...

A snap shot of the value for CJO

1) Mexico
San Anton resource including both the copper rich and gold rich area.

4.5 mil oz gold; 202 mil oz silver and 1.4 Bil lbs copper

2) Australia
Kalman resources consist of 194,700 tonnes copper; 30,400 tonnes moly; 2,326,000 oz rhenium and 294,000 oz gold

In todays dollars the San Anton project will be worth over 10 billon dollars in the ground taking into consideration that cjo owns about 65 percent of it.

The kalman project will be worth around 4 billion in todays dollars in the ground.

Market cap is about 100 million

Recent development:
Mexico project has gold reach and copper rich propery system
A scoping study is done for the gold reach system with the following results:

Key scoping study outcomes:
� US$260M net free cash flow before tax (unadjusted for inflation) � post capital expenditure payback
� US$82M estimated initial capital investment to be paid back in 2.25 years
� US$415 per ounce average life-of-mine operating cost after silver credits, indicated
� Updated optimised pit results for combined heap leach/carbon-in-leach processing of:
o 69.9Mt in-pit resource at 0.66g/t gold (Au) and 13.6g/t silver (Ag)
o 0.74:1 average strip ratio over 14 year mining life
o 4Mtpa initial processing rate, expanding to 5.5Mtpa
o US$900/oz gold/US$15/oz silver metal price assumptions
� Full feasibility study will now proceed for completion by last quarter 2010
� 2011 current target for mining commencement � dependent on feasibility study outcomes

Bear in mind the study is done with gold at $900 and silver at $15.
The cash cost after silver credit would be much lower if the current price of silver is used. Also at the rate silver price is going this may become a silver mine with gold credits rather than a gold mine with silver credits. Remember that there are very few silver mines in the Asx and with 200 million oz of silver (from both the gold and copper rich area) this project is not to be sneeze at.

Other recent development include the beneficiation test work for the iron ore project in Mt Phelp which seemed to be favourable and seemed to have given the share price a boost.

Risk
Need to raise money for capital works
Need to prove that mine is feasible
Low grade resource.


Share price driver.
If management were to be able to get finance either through borrowings, or joint venture or share allocations it will give the share price a big boost.. 80 million dollars for capital expenditure is no big deal for a gold project of about 100.000 ozs per annum.
Also this is not a small project. With gold and silver prices at all time high there will be many majors eying it for a take over.
Rerating by market as it is very undervalue based on market cap per oz
Lastly all boots rise with the tide as the gold price keep rising.
Monetising of the iron ore project would drive the share price up.
Favourable feasibility study will also give the share price a boost.