Hello Valegianpt.

I posted the links to the September Spot Market prices in my original message.

They are for molecular oxide weights and compositions of Iron (Fe2O3) and Titanium (TiO2) and Chromium (Cr2O3) and Vanadium (V2O5)

As follows, again, is the link I posted earlier for Chromium:

http://www.metal-pages.com/metals/chromium/metal-prices-news-information/

In my original message, I said I lowered the price of Cr2O3 “to compensate for the higher weights of the oxide resources (compared to the pure metal weights).” I also said I rounded off the prices and converted them to Canadian dollars. I did not show every stage of the arithmetic, so as not to make my message too tiresome to read.

But your message serves two excellent purposes (not only for you but for other interested people as well):

#1 Excellent Purpose) The problem arises of coming across different prices that don’t match. This problem is especially acute when it comes to a thinly traded metal, such as Chromium. Naturally, everybody reading my messages should understand why I’m using the Spot Market price for pure Chromium, instead of choosing the price of one of the intermediate, less purified grades.

I used the Spot Market for pure Chromium because that’s the most straightforward thing to do. There are many prices out there for the less purified forms, Ferro Chromium being the most popular. One problem with intermediate grades is that they’re sold in different percentages of purity and for each molecular permeation. Using pure Chromium is less confusing. Plus, it’s easier to use to compare (by weight) one company’s deposit from another’s.

Moreover (and most important), to arrive at a usable rough valuation, the price for the pure form is best because it can be discounted by a universally understood percentage. Naturally, when using the high-priced final pure form, the discount percentage applied to early-exploration companies’ in-situ resources should, on average, be very high. I explained my choice of 98% for Fancamp in my original message. In other words, the price I used for valuation was (only) 2% of the pure price.

#2 Excellent Purpose) Knowledge is power. It’s important that all parts of anybody’s calculations (which investors rely on) should be transparent; and (as we all well know) every investor should exercise due diligence. Part of that is studying the original sources and the using the original documentation as your points of reference. “Doveryai No Proveryai”—Trust But Verify—(a Russian proverb, popularized by Ronald Reagan.

As follows, I’ll run through the arithmetic:

You will note (in the above website link to “Metal Pages”), there are two price charts (in the upper right). Both are metric tonne Spot Market prices for 99% pure Chromium. The first is in terms of USA dollars, delivered to Europe. The second is in terms of Chinese RMB, delivered to China. Comparing the two prices (after converting them to the same currency), delivered to China is approximately 4% more than delivered to Europe. I used the Chinese price because it’s to the more likely destination; and because I didn’t want to bring up a minor point for discussion.

Current exchange rate 6.15 Chinese Yuan (RMB) = 1.00 USA Dollars
Current exchange rate 1.10 Canadian Dollars = 1.00 USA Dollars (or Canadian 1.00 to 0.9093 USA)

Chinese Yuan (RMB) 59,000 metric tonne = US $9593.50 = Canadian $10,553 metric tonne.
Canadian $10,659 metric tonne (after adding 1% to 99% to make it 100%)

The metric tonnes in our NI-43-101 are for Cr2O3, not for pure Chromium. Therefore, as I said in my original message, I accounted for the difference in the molecular weights, by “lowering the prices of the TiO2 and the Cr2O3 from the online referenced pure metal prices.” In my original message, I also posted a link to a molecular weight chart (that can be used for all four of the Magpie metal oxide forms). According to the referenced chart, the ratio of pure chromium to CR2O3 is a “factor” of “0.684202” to 1.0.

http://www.geol.umd.edu/~piccoli/probe/molweight.html

Canadian $7,293 metric tonne ($10,659 X 0.684202)
Canadian $7,400 metric tonne (the price I posted in my message, over the weekend).

The difference is due to the strengthening of the Canadian Dollar against the US Dollar. Compared to the US Dollar, the Canadian Dollar was even weaker two trading days ago.