Cumberland Resources (CLG)

[amarksp]

CUMBERLAND RESOURCES (CBD : TSX : C$3.25) - SPECULATIVE BUY
12-MONTH TARGET PRICE: C$4.25
Graeme Currie
Comment: Cumberland reports additional kimberlites at Meliadine East On the Meliadine East property, Cumberland and 50/50 joint venture Comaplex Minerals (CMF : TSX) announced in May that the first hole in a diamond exploration program intersected kimberlite in what was interpreted as a pipe. Yesterday, the company announced that of 16 targets drilled in the just ended program, 14 intersected kimberlite though the release did
not define whether the targets intercepted appeared to be pipes or dykes.

We understand that the samples are to be processed by caustic dissolution for analysis of diamond and diamond indicator minerals. Cumberland's discovery of kimberlite bodies adds to, or enhances, firstly the general district and secondly the speculative leverage of this junior. The discovery of multiple kimberlite bodies at Meliadine East adds a new dimension to Cumberland. The shares remain a SPECULATIVE BUY with an
upward revision in the target price from $3.75/share to $4.25/share, inclusive of current working capital.