Colombian

[vanbrussel]

Cambridge Mineral Resources PLC revaluation in Q2?

From Equity Growth dated 04/5/07

1. Quintana feasibility by end april
2. Mina del Sol (world class?) drill results by end may
3. Revaluation from £2.6/oz to £5-£10/oz possible

Cambridge Mineral Resources (CMR), the South American focused gold exploration company, has recently announced some very positive drilling results relating to its Quintana project in the Colombian department of Antioquia. Specifically, Quintana is located about 130 kms northeast of Medellin in the heart of the Antioquian Gold Belt.

At Quintana a mesothermal quartz-sulphide vein averaging 1 to 1.6m thick is currently mined on an artisanal basis. In late 2006 CMR embarked on a 2000m 10-hole diamond drilling programme to test the continuity of the vein at depth. Drilling results suggest high-grade intersects including 2.5m at 46.44g/t Au and 1.75m at 55.39g/t Au. The intersects appear below the presently known reserves and therefore point to an enhanced resource base.

Quintana is CMR’s most advanced development project in Colombia. The plan is to move along the vein developing blocks of 50,000 tonnes of ore prior to extraction. A feasibility study for the development of Quintana has been prepared by CMR and is awaiting independent verification. We believe sign-off should be received by end April. The feasibility study will be used to obtain project finance for the development of the Quintana mine and the construction of a mill. Depending on the availability of finance, production could commence by late in the third quarter of 2007. Initially, mine production is expected to be 50-100 tonnes of ore per day but over the next two to three years should increase to at least 200 tonnes. If Quintana commences operations as expected, gold production of a few thousand ounces in Colombia is possible in 2007.

Post Quintana drilling operations are expected to be focused on Mina del Sol located about 70 kms northeast of Medellin. Again, Mina del Sol currently operates as an artisanal mine but between 1994 and 2000 was appraised by the Canadian Company, Corona Goldfields. Reflecting high grades and apparently wide veins, Mina del Sol could be a world class discovery. Results from diamond drilling programme at Mina del Sol could be made known by end May.

CMR has languished since end 2006 at just over 3p/share, only modestly above the all-time low of 2.50p/share plumbed in October 2006. We believe CMR has continued to suffer from perceived risks surrounding its aggressive expansion programme and the related very large increase in the financing requirement. Once the Quintana bankable feasibility study has been signed-off and the formal go ahead given for mine development, however, sentiment could rebound sharply. The valuation basis is a decidedly marginal £2.6/oz based on an estimated resource base of 2.5m ozs and the current market capitalisation of £6.6m. If the mine development programme in Colombia gathers momentum as expected in the coming months a valuation of £5/oz to £10/oz would not be onreasonable.

http://www.proactiveinvestors.co.uk/registered/research/equitygrowth/NEWSLETTER_05_April_07.pdf

*Corona Goldfields = Conquistador Mines Ltd = Orsa Ventures Corp
however Orsa is exploring China nowadays

Cambridge Minerals Plc London AIM:CMR
http://www.cambmin.co.uk/
MarketCap £6.53m
100.000oz by 2010

Mina del Sol = El Rayo (46mx250m)
Trench #200 = 11m@12g/t width
Trench #201 = 30m@9.30g/t
102-105.1 = 11m@7.14g/t
http://www.cambmin.co.uk/?page=el_rayo_overview