surferstu posts, page-7

SurferStu

Many thanks for your reply.

I have a gut feeling that CRK's 4 million resource will prove to be much less when converted to reserves but that there is some readily accessible ore bodies that will be mined, initially by a deal with NGF. I have no idea how much of what CRK has defined as a resource will be converted to a reserve. If a deal between NGF and CRK proceeds then we should get a useful uplift in CRK's shareprice.

NGF has some experience with underground mining having recently developed their Homestead mine, which is now producing. However, it turns out they made some errors and subsequently found that its narrow vein nature meant it has a much lower expected life and production profile than when it was planned (ie their geologists got it wrong). I believe NGF would be milling CRK's surface/near surface ore rather than any deeper deposits, at least initially.

The press release of 18 August 2010 announcing the appointment of Laurance Freedman to the Board of CRK indicates that they plan to move from explorer to miner and that he hopes his role in assisting with the transition will be completed within 12 to 18 months. I think he will make sure that he gets his pound of flesh out of his CRK investment, and it is my hope this will be positive for all investors.

loki