Highly prospective exploration company
Resource projects cover more than 1,713 km2 in three provinces at various stages, including the following: hematite magnetite iron formations, titaniferous magnetite & hematite, nickel/copper/PGM, chromite, Volcanogenic Massive and gold.
Message: FNC and its upcoming JBL-ROF NICKEL drill program... how events may unfold >>
A fellow investor in FNC and I were talking this weekend...and this is what we came up with:
If NOT has failed to gain control of FWR then I see a number of events unfolding:
1. Noront will not develop their chromite because Cliffs will be developing the FWR (and likely Big Daddy) at a much lower cost of extraction and Cliffs will have the pipeline required to take the raw material to finished product.
2. NOT won't move to buy PRB. The NOT Chromite plus the PRB Chromite (to date) does not meet the critical mass to warrant development just yet, as you will have Cliffs mining more than enough material to supply North America. Therefore a move on PRB by NOT is not likely.
3. NOT will retreat to the original plan of Nickel, which I believe they have more than enough of to go into commercial production. However if they want to extend their mine life they had better get all the Nickel assets they can. For some time now I believe that John Harvey, Peter Smith and the NOT crowd have had a very good idea that the Nickel on the NOT property extends or is even partially sourced from the FNC property. I believe this mineralization crossed the boarder at 1000 meters ... which is not deep once you're underground and you can mine your way down (making money as you go).
NOT has had ample time to drill on the boarder and do down-hole EM to peek at least 200M onto the FNC ground, or would the indication from the ZTEM be enough to convince them?
4. Peter has raised enough money to finance a drill program in the JBL. Rumour has it that he has done or is doing some DHEM on a number of his historic holes and may be ready to start drilling by mid-January. If Peter decides to go deep (which I think he will) and he intersects mineralization at ~1000 meters...all hell may break loose on this tightly held stock.
5. Therefore, NOT had better make a move prior to Peter getting started. Don't kid yourself, NOT is not a group of idiots and they know very well what should be drilled and where. Possibly John Harvey could give Peter his two cents worth as well.
6. Regardless of the outcome I think that NOT has to own the FNC property. I think they may move as soon as this FWR issue is dealt with one way or the other.
Peter is already on his way to drilling and I hope he beats NOT to the punch with an initial blockbuster deep hole.
My hypothesis is based on a number of 'ifs' but I believe that the possibilities are high...that is why I am a Shareholder.
Matt
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Dec 14, 2009 06:57AM
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Dec 14, 2009 07:57AM
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