v.cdb...good to go..imo
News Release - April 9, 2009 5:36 PM ET
Mining Sector: Investment Advisory - Cloudbreak Resources Reviewed in Mining Journal as One of the Strongest and Largest Coal Exploration Land Packages in Saskatchewan
Cloudbreak Resources (TSX-V: CDB) (Frankfurt: C6K) (US Listing: CUDBF) appears undervalued with only ~84M shares outstanding and trading under CDN$0.10. Cloudbreak has one of strongest land packages for coal exploration in Saskatchewan. Geologists interviewed by Mining Journal believe CDB.V is ideally positioned in the coal trend with superior technical characteristics conducive to finding a deltic-sequence for quality thermal coal similar in size or even larger than what Goldsource found on the same trend. A drill program (permits submitted for up to 40 holes) set for Q2 2009 on the 100% owned CDB.V Dowd Lake Coal Property will begin by effectively twinning a historic 145m variable coal seam intercept (from a former operator in search of kimberlite) that is indicated in government reports as Sub Bituminous C coal, the drill program will then build off analysis of the first hole.
NEW YORK, NY, April 9, 2009 /Sector Newswire/ - Mining MarketWatch Journal has published a review on Cloudbreak Resources Ltd. (TSX VENTURE: CDB) (Frankfurt: C6K) (US Listing: CUDBF). The review offers insight and opportunity afforded investors as Cloudbeak prepares for a planned Q2 2009 drill program on property in the same Saskatchewan coal trend as Goldsource who experienced outstanding technical and market success in their coal exploration efforts within the last year. The Mining Journal researched through geologists, management, and other sources the science, opinions, and confidence behind CDB.V coal prospects and in conclusion the Mining Journal believes it would be remiss in not urging their readership to consider a long position now. CDB.V appears undervalued relative to the nature of its core holdings and potential. The Company possesses a highly skilled technical team, experienced management committed to maximizing shareholder value, and the security trades with good liquidity.
The full review and valuation commentary may be found at: http://miningmarketwatch.net/cdb.htm online.
Excerpts:
"...Cloudbreak Resources Ltd. is a Canadian-based mineral exploration company listed on the TSX Venture Exchange (ticker symbol CDB) (Frankfurt: C6K) (US Listing: CUDBF). The Company has come to our attention due, in part, to the outstanding prospects for coal discovery on their 100% owned Saskatchewan project and, in our opinion, the resulting extraordinary opportunity afforded to prospective investors.
Figure 1. Dowd Lake Coal Property & Region CDB.V Dowd Lake Coal Property, directly adjacent to Goldsource's Ballantyne Property, is the target of Cloudbreaks 2009 Q2 drill program. The first drill target will effectively twin a historical 145m variable coal seam intercept that a Geological Society report indicates as Sub Bituminous C coal. The potential to locate a solid seam of coal is high as geologists believe the coal trend runs through (see 'TREND' in map below)...
Figure 2. Coal Trend - The coal trend zone runs SE through Manitoba, towards the US border. Coal is significantly closer to surface on the northwestern side, where Cloudbreak properties are, and deeper in the southeast. Most of the CPPs (coal processing permits) granted in the province to a myriad of companies follow that trend. The Certaceous Mannville Formation runs its length and the discovery by Goldsource of coal in two drill holes, 1,600 metres apart, suggests the potential for a much larger coal system; coal seams of Cretaceous age are believed to be generally very large and can encompass several thousand square kilometers.
Cloudbreak Resources has ~475,000 acres of coal exploration permits, totaling 21 full or partial townships in Saskatchewan, making Cloudbreak one of the largest landholders in the area. The properties cover the Mannville Formation of Cretaceous age, the same lithology as the Goldsource Border Coal Discovery located on the same coal trend. Cloudbreak's properties are believed to contain basinal and depositional similarities to that of the Border Coal Project area. The CDB.V Dowd Lake Coal Property, directly adjacent to Goldsource's Ballantyne Property, is the target of Cloudbreaks 2009 Q2 drill program. The first drill target will be effectively twin a historical 145m variable coal seam intercept that a Geological Society of Canada report indicates as Sub Bituminous C coal. Many intercepts, such as the aforementioned 145m intercept, were not logged in detail by past operators as they were focused on kimberlite found 'beneath' the Cretaceous lithologies within the Precambrian basement; and not within the overlying Mannville Formation -- Cloudbreak has identified through historic research, the location of drill holes where data indicates that coal exists.
Richard Macey, President & Director of Cloudbreak, offered the following synopsis of the upcoming drill program, "It is a known fact that there is coal in the ground in the region. We have quite a strong land position and feel comfortable that we are going to hit coal. Past historical drill results suggest that this is inevitable, and the Dowd Lake Coal Property is only one area of interest. Cloudbreak has six properties on the map. If results are positive, we'll continue, if not, we'll shift focus to some of our other properties that are easily accessible".
Cloudbreak did an inordinate amount of research in selecting the properties they have, making use of geologists in the know, including government geologists who are familiar with the coal trend, fault lines, history, and nuances of the region. Richard Macey purposefully staked these properties, not only based on the opinion of geologists that they are highly prospective for coal discovery, but because they are just south of the Canadian Shield, where the coal is relatively close to surface, giving the company the opportunity to drill economically.
The properties were also specifically selected for year-round road access and minimal disturbance. Geologist Paul Gray pointed out how CDB.V projects are 'high and dry' properties that can be drilled year-round, unlike the swampy low-land properties of many other companies, which would require an expensive helicopter supported program or a winter freeze-up, the building of ice roads, and the creation of a large amount of disturbance, thus adding to permitting time and cost. CBD.V President, Richard Macey, personally drove the back roads into all the properties prior to staking to ensure shareholders would benefit from minimal disturbance and related cost savings.
What became evident in our conversations with geologists intimately familiar with the area and the properties Cloudbreak possesses is the superior calibre of the land package, the contributed insight that went into selecting the properties, and how CBD.V can benefit going forward. Not only is Cloudbreak able to build on published historic project results, from those that searched for kimberlite, but as Geologist Paul Gray said, "Not every company who'd been there in the 50s, 60s, and 70s had made their information public. They kept their cards close to their chest back then and that is what will build on too, the ability to find some of those drill holes and work it from there." When pressed to explain what he believes CDB.V will find, Paul explained how large coal intercepts originate and how there were basins of attraction in the Mannville in which thickening of coal occurs. "What you are looking for are old bays and/or old depressions which would allow thick concentrations of coal to deposit, like what Goldsource has identified. There is nothing indicating there isn't another deltic-sequence somewhere further north that may hold the same, or even larger targets, and that really blows everything wide open - because the best thing about where Cloudbreak's northern projects are located, is that the target coal lies almost at surface, just beneath the glacial till. You are not looking 80m depth, you are looking merely 20m down, and that makes all the difference in economics."...
The full review and valuation commentary may be found at: http://miningmarketwatch.net/cdb.htm online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
SOURCE: Sector Newswire Per: Mining MarketWatch Journal
editorial@SectorNewswire.com
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