CNL: Buritica

LAURIE CURTIS, Clarus Securities Inc. (09/24/2010)
"Exploration thus far has revealed that the approximately nine veins (likely more once the veins can confidently be connected) occur in the Yaragua system and appear to comprise a braided vein network 250m–300m vertical and 120m wide over a strike length of 500m. . .Clearly, the regional geochemistry and historic workings are indicative of a much larger system but management has not yet speculated as to the ultimate size potential, suffice to say the geochemical footprint extends far beyond known veins systems to date.

CNL believes [it has] a tiger, but one that needs to be tamed with a focused effort. The expensive adit [sic] program will provide not only exploration intelligence but will essentially comprise development access and relieve likely long-term bottleneck in future mining. This serious approach, as with the current mining program, which generates annual cash flow of about US$7M) is not about proving up quick ounces for the market. The CNL management team assembled by Ari Sussman is engaged to mine and step-by-step and millimeter-by-millimeter, they are pushing to understand the ore body they are defining.

While we anticipate that Buritica will, ultimately, be a high-grade producer (from selective mining), it will be underpinned by a significant +3 Moz. global resource, which we estimate will be of quality grade and ensure long-life production."

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