Value Microcaps Free-For-All

[Bobwins]

crk re auq.v I talked to them at the Vancouver show. They are bootstrapping their gold mines. Getting one into production, using that cashflow to build a second. Exploring for more. 50% interest of a small mine isn't going to generate huge revs and eps but will probably cashflow fairly well due to low cost heap leach operations.

Technical report just issued says 10 to 17 million cashflow in 2007 based on 500 to $650/oz price of gold. There are about 77 million shares out fully diluted. Lots of warrants. That could be holding down the price.

Bottom line, because they went the bootstrap method and didn't drill the project till it looked like swiss cheese, they only have a 1.5 year mine life. If the inferred resource gets upgraded to reserves, then it goes out to several years. I think the lack of reserves will put a cap here until they announce more drilling results that verify they can continue operating. The first financials should be positive for the stock because many may not realize the cashflow potential of .22/share for 2007. If they had 7-10 years of reserves, that could result in a $2 gold stock. BUT they don't have 10 years, they have 1.5.

So cheap, cashflow positive gold producer. Small scale but managing the project to go as fast as cashflow allows. No debt and multiple prospects to increase reserves within close proximity.

Bobwins