Cumberland Resources (CLG)

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CUMBERLAND RESOURCES (CBD : TSX : C$2.55) - SPECULATIVE BUY - 12-MONTH TARGET PRICE: C$3.75
Graeme Currie
Comment: Cumberland discovers kimberlite pipe at the Meliadine East property
On the Meliadine East property, Cumberland and 50/50 joint venture with Comaplex Minerals (CMF : TSX) announced yesterday that the first hole in a diamond exploration program intersected kimberlite that is interpreted as a pipe. The vertical hole terminated in kimberlite at 100 metres depth, giving a core interval of 85.4 metres of kimberlite. We understand that
the sample is to be processed by caustic dissolution for analysis of diamond and diamond indicator minerals. The current program is designed to test a total of 11 targets as defined by geophysics and, in some cases, down-ice indicator samples previously completed that had yielded kimberlite indicator minerals. Cumberland's discovery of a kimberlite pipe adds to, or enhances, firstly the general district and secondly the
speculative leverage of this junior. We maintain our SPECULATIVE BUY recommendation with a target price of $3.75/share. Cumberland remains a top recommendation