Sometimes I think we don't understand Chromite

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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.

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Sometimes I think we don't understand Chromite

posted on Jun 14, 2010 08:04PM

Cliffs just increased their offer to Spider to .165 cents

Mac got it from the beginning, but in the end missed Cliffs's understanding of chromite profit. I don't think we or the general public get it yet. I know I continually refocus on nickel rather then chromite. Is Cliffs alone in their understanding of chromite profit?

Let's look at Noront's recent offering of it's chromite. Some may think it's simply taking advantage of excess waste, as they arew focused on Nickel. I'm starting to think it's a preemptive move to save their company from a takeover. Noront's SP, even with 10+mil/ton nickel, it is hovering below $1.30. It won't take much for Cliffs to buy out Noront. But, they can spend less for Noront's chromite rather then spend more for a Noront hostile takeover. In my mind, Noront felt a check, it moved a pawn for a block.

Imagine the Fancamp scenario if Cliffs or another major buys Noront's chromite? Cliffs will make an offer for Fancamp within a day following. I suspect, due to chromite, Fancamp won't be around this winter (at least in Mcfaulds). This is strange as it means that no matter how much nickel we may find, Cliffs is going to take us out for the chromite. Or does anyone still think Cliffs will content themselves with their current land holdings?

I suspect Cliffs war-room is debating just that: how long do we wait to make an offer for FNC: before or after they release nickel assays or drill for C-5? i beleive it is for this reason that Peter will release visuals, to preempt a Cliffs offer, and increase SP.

I'm starting to think Peter should get back to N.America and request a second drill redirected to C-5 chromite immediately, before Cliffs concludes Spider/KWG.