Cumberland Resources (CLG)

[amarksp]

CUMBERLAND RESOURCES LTD. (CBD : TSX : C$4.05) - SPECULATIVE BUY -
12-MONTH TARGET PRICE: C$5.30
Graeme Currie
Comment: Cumberland reports base case for feasibility study increased from 4700 to 5500 tpd Cumberland Resources provided the final results from its 2003 exploration program on its 100%-held Meadowbank gold property yesterday. Within the release, the company reported the final phase II drill results that were in-line with expectations. The results are primarily from in-fill near surface drilling on the Third Portage Zone. Of greater interest, in our view, was the confirmation that the base case scenarios for the feasibility study currently underway for Meadowbank will employ an increased throughput of 5,500 tpd, up from 4,700 tpd. We had already suggested in a September report that such an increase could be possible, thus, our models already reflect higher throughputs. We maintain that target and also maintain our SPECULATIVE BUY rating for this junior.