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)

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Message: The Road

The Situation

in response to by
posted on Feb 24, 2008 02:58AM

Something that seems to get missed in the quest for repeating bonanza holes is the value of the 1% or less findings outside of the hotspots that, in the end, will dwarf the finds of high quality.  These lesser but mineable finds will contribute significantly to the overall value of this area.  So far, drilling and SP estimates have been based on attempts at the high end anomalies, and rightly so in terms of attracting attention, investors and finally majors.  However, it appears that there is mineralization near surface at lower percentages which will be very economical and ultimately need to be factored into the equation.  The people in the know, whether openly or privately will be factoring this into their accounts.

Obviously, anything that costs/makes money will have to be factored into the business formula for feasibility, and is smart to do so, however, in light of demand for what this region holds, it is highly likely that obstacles will be easily overcome.  What it takes to open up this region will likely be minor in the face of the gains.  I speculate that if we knew the complete picture of what was going on at D.E. most of us would be more confident than we already are.  

The above indicates thoughts on the longer term.  In the short term it is still possible, as we know, to be drilling uneconomical holes for a while as much as we hope that will not be the case.  Volatility in the SP could be back in short depending on what we hear or don't hear from NOT.  A waiting game as usual.

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