HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Message: Benton's diatribe...
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Dear Boys, Girls, Bashers, Shorters, Pumpers, Newbies, Pros, Longs, Musicians, Traders, Old timers, and Ladies, I had planned to post my two cents a little earlier, but my printer started acting-up and I could not print the NR so that I could carefully read through it and make notes with my red pen. Interestingly, I did discover that Lexmark All-In-One printers are not highly aerodynamic, as mine stalled at probably about an air speed of 40 knots from an altitude of about 5 feet as it flew across my office and skidded across my glass coffee table (it left a plastic skid mark that I had to scrap off). So I marched off to Best Buy and purchased a more aerodynamic looking HP model C4280, which I estimate, just by eyeballing it, to have a stall speed of about 5 knots higher than the Lexmark despite the Best Buy dude being unable to confirm this for me – useless retail staff. However, I will probably not test this for a year or two… Stay tuned. Anyway, with a shiny new printer to spew out the latest NR, I quickly set to work digesting today’s news, and before I get into detail, I will say that I think it is quite spectacular and I hope Rockaur is working on a updated 3D image based on the latest data, as this will give us the best understanding of what we have so far in terms of deposit structure/size. Now before we go any further, as the old Stockhouse crew (such as snezzer, bravekind, MISFIT1, canseco, franz, LTGoldBull, oldlady, and many others – sorry to those of you I omitted) will confirm, I am not an excitable pumper type. In fact, if you read some of my Shouse posts, you will see that I tend to be a factual, critical, analytical and sometimes an ass. You should also know, that I have worked on mineral exploration projects across Africa, and in the Arctic as a diamond driller (brrrrrr), and have had a reasonable understanding of mineral exploration methods, geology, and mining (my father is mining engineer of nearly 40 years) – the mining industry has been part of life from the day I was born. Furthermore, when I don’t know something, I can contact senior mining industry professionals (geologist and engineers) who can educate me. I have also met Richard Nemis and have looked him in the eye when I shook his hand, listened to him speak for hours, and asked him critical and direct questions about Noront operations. The point is… I am not a completely uniformed, and I know that guys like Richard Nemis don’t talk big unless that they are quite confident that they have something big. Now that I have finished puffing out my chest, let’s get to the important/good bits… First the tonnage issue… As franz and others have already stated, obviously we know that we don’t know what sort of resource we have (how many tonnes of minerals we have based on grade and volume) at this juncture. Simply put, its much too early to know that, and emphasizing that we don’t know is stating the obvious. This is a drill hole play right now and we could be many months away form knowing anything concrete about the size of this discovery. Yes we engaged in some early speculation intended to establish possible minimums, and we will continue to do that as we learn more, but it was speculation, and don’ think for a minute that MMs are not engaging in the same sort of guesswork to answer the question: “How big could it be?” This is always done, and based on the characteristics the deposit has exhibited so far, the potential for something big is reasonable, which is why the MMs pushed the SP from 40 cents to $4. We need to remind ourselves that a ‘drill hole play’ means that the share price (market capitalization) is the product of a rational speculation about the potential size (tonnage) and value of a new deposit/discovery based on reasonable assumptions about what is known (e.g. exploration data, such as drill results, and geological setting) and rational speculation anchored in established geological and mine engineering expertise/knowledge. As more is known about the discovery when results are published, the MMs quickly re-speculate and plot their strategy accordingly. This strategy is part of complex market game in which the share price falls victim to greed, fear, algorithms, and outright manipulation as the MMs push the SP upwards or downwards based on probabilities of success they have ‘calculated’. As has been mentioned by me and many others, this can lead to a lot of volatility on a daily basis, and we need not concern ourselves with that if we have made the decision to be long on NOT. The game that is being played is much bigger than any of us… We are just tagging along like flies on the back of a bull elephant – powerless to change its course and hoping it continues moving in the right direction. Today’s evidence (the NR) does not, in any way, weaken or poke holes in the case that DE could be a world class discovery (that means ‘big’ for those of you who are not familiar with this description). In fact, it does nothing but make the case stronger that our elephant is traveling in the right direction, and here’s why… First, although some of our holes have missed, which is normal and expected in the early stages of deposit discovery, as the geologists begin to wrap their brains around the geometry on the deposit, we continue to intersect significant lengths of mineralization (rock with minerals and/or metals) and have hit in 7 out of 12 holes. The assays returned so far have been exceptionally good, in some cases spectacular, and there is no reason to believe that this will not continue as VMS deposits tend to be fairly uniform or consistent in grade. We have significant mineralization intercepts (widths) ranging from just under 40m to nearly 130m in hole 12, and still counting, since this hole is not yet finished. Hole 12 will probably surpass Hole 5 in terms of results and significance, and I believe we have good reason to expect that this deposit continue will only continue to expand in size – you do not get those kind of results (widths) in this type of geology without their being significant mineralized structures in the area. Second, the NR mentions for the first time “Eagle One”. Since this is the Double Eagle project, I believe that we are only drilling the first of two highly prospective targets that first attracted NOT to these properties. Third, the ground geophysics program continues, which will be a combination of surface and down-hole electro magnetic geophysics which will aid greatly in expanding the geometrical understanding of the mineralized structure(s). Fourth, they have awarded a large Airborne Geophysics AeroTEM-2 contract to Airquest International. This is the latest technology in airborne geophysics and has been successful in identifying anomalies and structure that did not show-up on geophysical surveys conducted with industry standard technology (see this link for more info: http://www.aeroquestsurveys.com/pdf/aerotem.pdf). This geophysics will be used to identify new targets on the newly acquired permits. This Double Eagle story is just beginning… Fifth, they have increased their land holdings by 400% since the initial discovery. If you look at the old maps, you will see that NOT had a significant land positions in the area even before their discovery - now they now 4 times that amount! This only increases our chances for multiple discoveries and again demonstrates why NOT’s DE story is only just getting started, and also bodes quite well for some of the area plays. NOT would not be expanding their land position so dramatically if they did not think there was a reasonable chance for further discoveries. Sixth, the company has just added $13 million to its $15 million cash position due the exercising of warrants. The company now has nearly $30million to conduct its exploration programs and will not need to refinance for a very long time. Obviously that is great news for shareholders… Seventh, so far quality control programs have confirmed the reliability of assays, meaning that what is being reported is accurate – this is no scam. For those of you who have asked, anything in the results that mentions ‘mineralization’, ‘sulfides’, ‘massive sulfides’ (‘massive’ does not mean ‘big’ or ‘huge’ in this context), ‘textured sulfides, etc. is good news. Once the assays are back, we will know how good, but as I said above, the assays results we’ve got back so far have all been excellent. There is no reason to expect that this will not continue since it is my understanding that VMS deposits tend to be fairly consistent in grade within the zones. Finally, as some of you have already mentioned, this is an open forum where we are all free to express our views, and debate and argue with each other about the validity of those views – within certain parameters. It would be both uninteresting and also useless if we all always agreed with each other. Debate/argument is necessary to help us work through our speculation and develop probable scenarios and sound theories, as well ensure that the information we post is accurate. Philosophers argue with each other all they time - they do this professionally - and philosophy has been at the forefront of the development of our legal system, ethical/moral codes, as well as our scientific knowledge, since the very beginning of modern civilization. The point is argument is both okay and also necessary. However, we need not make it personal when we are challenged or confronted with opposing points of view. I can have heated discussions with people and still remain friendly and polite. The personal attacks that some of you have engaged in are uncalled-for, inappropriate for this forum, and also a violation of the Agoracom rules. Although I have expressed my suspicions about certain posters, I have never been rude or insulting to anyone. I will no longer respond to anyone who engages in this sort of behaviour, and I apologize now the board for any of my posts that were offensive. However, I think if you reread my posts, you will find that although I may have pushed the limit on one occasion in response to a particularly offensive post, I did not engage in personal attacks and insults. Let’s keep our punches above the belt and not make things personal - we are all adults here. If you cannot be challenged or questioned without lashing out, then maybe you should go back to Shouse… Regards, B.
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