Cumberland Resources (CLG)

[amarksp]

Capex Lotto = C$215M
Cash Cost = US$168
IRR = 20.1% @ $325 POG
2.3M ounces measured reserve
1.2M indicated reserve
3.5M ounce total reserve at Meadowbank

Estimated Capex per Research Capital is C$215 per report dated 04/24/02. See page 12:
http://www.researchcapital.com/docid.cfm?docid=2678

Part of this C$215M will be for construction of cofferdams which likely accounts for some of the large capex: "A challenge at Meadowbank is the construction of cofferdams to allow for extraction of ore at Third Portage and Goose deposits - a portion of both deposits lies under a lake." (Note this dam construction not necessary for Vault Open Pit deposit which is largest resource...)

Also, note the annual budgeted capex:
2002-03........C$12M
2004.............C$71M
2005.............C$116M

Per Research Capital page 11:
"By 2Q03, we expect a production decision may be made, and that in the shipping season for 2003, all prerequisite preparation materials and necessary equipment would be delivered to Baker Lake. Over the 2003 winter road, equipment would be moved to site, followed by physical construction commencing in the spring of 2004. Larger items like SAG and ball mills, gensets, etc. would be shipped to Baker Lake in mid-2004 for transportation to site over the 2004 winter road, followed by nine months of physical construction.We expect production could start late 3Q05. The construction schedule is complicated by the need to use an ice road to move heavy items."

This info corroborated via loantech who notes that some of recent 7/03 financing proceeds will be used to begin infrastructure construction:
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=19117733

"3.CBD has a tentative plan and proposal to use the dollars from the new financing to purchase supplies and material to start infrastructure at Meadowbank. As heavy equipment cannot be flown in it is sent by barge or boat. Construction to begin in 2005. They have a short by sea shipping time frame so all material must be sent one year early to make sure the narrow window of time before ice up is met. They are confident future studies etc will be positive so they are planning on moving forward now.
4.Tentative proposals are to have about $50,000,000 in cash or and infrastructure in place. Makes it easier to obtain a potential proposed bank financing of $120,000,000 for most of the needed $200,000,000 to build out the mine. The remaining $30,000,000 may come from an additional financing.
Of course this is the plan, it's tentative and this post is in no way the feasibility study that CBD will utilize to finalize their mine. <g> Do your own DD."

Finally, as Claude C has noted, CBD currently trading at below US$15 per inferred ounce:
"At a market capitalization of $C150 millions, that is $C100
($C150M minus $C50M cash = US$71M) millions for the
gold resource or less than US$15 per ounce (US$30 per
measured ounce)."