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1. An excellent management team of Mark Child, Jim Mellon and Roger Davey. 2. The high grade of gold. The 2,497,000 million ounces in Nicaragua is at 4.6 g/t 3. Nicaragua is a mining friendly country with several established gold mines and the World Bank has recognized that Nicaragua is now the top location in Central America for investor protection. The exploration and mining licences held by CNR were awarded for a 25 year period. Despite the presence of B2Gold in the country with two operating mines and over 100k oz pa production, it is CNR that has by far the biggest resource in Nicaragua. 4. CNR now has a maiden open pit resource of 977,000 oz at a very high grade (for open pit) of 3.7 g/t. B2Gold, which operates a 100k oz pa open pit nearby, has an average open pit grade of 1.8g/t and operational costs of $500/oz. The NI 43-101 report suggests open pit costs of circa $350/oz (maybe higher when stripping costs are included) and circa $540 per underground oz. CNR will continue to target another one or two open pits and if successful La India District will probably host a 200k oz pa (open pit) mill and will become increasingly attractive to the big producers. Recent results from trenching on the America vein set were most encouraging. 17m at 6.05g/t gold in trench LITR122, 30m at 2.64g/t gold in trench LITR123, 16m at 2.51g/t gold in trench LITR125, 10m at 3.47g/t gold in trench LITR131, These are much better than the corresponding trenching on the India vein which ultimately led to a 977k oz high grade open pit.The best results from the India vein (800m long strike) were 4.6m @ 6.29g/t and 15m @1.05g/t. The results from the trenching from the America vein over a strike length of 500m (open along strike) quite simply leave the India/California results in the shade! 5. CNR's recent drilling has been highly successful, not only returning some bonanza grades, but also in terms of the ounces returned per metre drilled. The industry average is 250,000 oz per 5000m drilled or 354,000 oz per the 7090m drilled by CNR. The rate of return at La India has been 525,387 oz per 5000m - more than double the industry average.The last 7090m drilling campaign cost around $1.1 million and resulted in 750,000 new ounces (of which 500k were Indicated). That works out at around $1.4 per ounce. Soviet exploration estimated 2.4 million oz in the District but CNR has been exceeding the Soviet figures by more than 50%. CNR has since made several new discoveries and has has just purchased the exciting La Mojarra concession which may contain the' feeder system' for the District. Mark Child has talked about the District being an 'enormous' goldfield and of the likelihood of it hosting '4 to 5 million oz'. 6. Good local infrastructure with a main road, water, cheap labour and power lines nearby. 7. Edison value CNR's revised resource at £4.12 a share.
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