I have been looking through the July 4 news releases (both the original and the amended) and cannot find a reference to a cut-off grade of 1% Ni for E1. Both make a footnoted reference only to a cut-off of $115 NSR (I am assuming US$115 since all the other footnoted values are $US). All NSR values quoted therein were reduced by a factor of 67%. That would mean that anything above $173 per tonne ($173 x 0.67) would become "profitable", would it not? A tonne of rock with 1% Ni would yield $264 (2200 lb/metric ton x $12). The "cut-off" at E1 is therefore more likely in the order of 0.65% Ni equivalent. Sorry Mucker. That's the way I read it. I could be wrong, so please correct me if I am.

$264 per tonne is a pretty good return. However, at least with what has been found so far at E2, it would be misleading to state that the total Ni equivalent is much higher there. The values are minuscule so far for Cu and PGE. Maybe $15 - $20 more.

I think we have to bear in mind though that these are narrow stringers. Whether they are going to be mined in the end is anybody's guess. Perhaps they will get picked up in an underground operation, on the way to the better stuff much further down. At any rate, I agree with a number of the other posters. The chrome is the story here so far. And the fact that they keep drilling there with 2 drills tells me that they are sniffing out even bigger things.

Now onto A12. Very encouraging. I suspect the market will not get it though. One thing I found interesting is that the news release headlines with a reference to the 29.2 meters of visible MMS sulphides in hole 2. In fact, this is only the lower extension of the hole ("intermittent, disseminated, and semi-massive"). The nearer to surface section of 66 meters ("disseminated sulphides") is perhaps just as impressive; lower grades, but longer. More importantly, it suggests a body very similar to E1. In other words, perhaps as they get closer to the contact rock they will find the massives!

One final note. I appears that since the May 27 news release, only 17 additional holes have been drilled. Were we not expecting a whole bunch more than that? It seems a little puzzling to me. Not a complaint. Just a query. Any thoughts guys?

Tomorrow should be another interesting day.