The summer is drawing to a close here in Toronto. A few more warm days to come, but basically it is the time to start to think at least about hockey (the Leafs?) and basketball (the Raptors?) if you are sports fans (I am). It is also time to stand back and reflect on NOT's SP history over the summer. The following are my thoughts, which have been influenced by many posts here over the summer. I can't name names, as there are too many to remember. However, you will know if I pushed the same buttons as you did. I thank you in advance, and don't pretend to take any credit, if credit is even in your minds at the end of reading this. However, I take full responsibility for the following. Comments, good or otherwise, are always appreciated.

There are many factors which can influence a company's SP in the short term and long term. I tend to think on the latter plane. Overall, I think, and it has been alluded to by at least one other poster, that NOT's SP has at least maintained a "performance", or perhaps been better, compared to many other junior exploration companies listed on the TSE-V and when one considers the overall dismal performance of the TSE of late. This could probably be said for the other players in the ROF. I don't have factual evidence. This is basically a gut feeling. This is also in the face of significantly declining metal prices. Take a good look at FNX. FNX's SP movement is a good barometer of Ni prices. So, we have at least held our own in the face of a bear market and lower metal prices. Better PR, i.e. assays, might of helped a bit more.

As far as mining analysts and the market in general are concerned, I believe that they are looking for more Ni/Cu tonnage at grades in excess of 1%. Probably north of 10M tonnes. I am a subscriber to the Ray Goldie type of analysis (check his book on INCO and Voiseys Bay). Why? Because his type of analysis reflects reality and the economics demand that at least 10M tonnes to be remotely interesting vis a vis making a $1B capital cost commitment to earn a decent ROI at reasonable metal prices. Please don't get upset. We already have 3M tonnes at Eagle 1 with more tonnage at Eagle 2 and AT12. I see the 10M tonne threshold quickly being met.

Now lets talk about the Cr. Chromite is considered a bulk industrial mineral. To evaluate a chromite deposit one needs to confidently know the following: What is the tonnage and grade; What are the markets, specs and the prices; Can a concentrate or mined bulk meet specifications for the different end uses; What will be the cost to mine and upgrade if necessary; and finally, what are the transportation costs to market. I think that with BB1 and 2, we have a long way to go before one can put a "value" on the chromite. Obviously, the market agrees.

Transportation is another issue. An all seasons road or railway line is a must. Capital costs may favour the latter. Shipping costs, and don't forget that shipment of bulk material in and out will be required, should be lower using the latter. Some of my back of the envelope calculations indicate that for the former, it would be about $120/tonne over the some 300km to Long Lac from McFaulds. Shipping by rail should be some 30% of trucking costs.

Windfall...what can I say? The price of bullion is down. The reason for the bulk sample is to place some confidence on what might be found during mining. 1 oz+ in core only means visible gold. The market waits patiently and with anticipation. So should we!

What should we conclude re McFaulds? Is it doable? The answer is yes!!! The tonnage and grades will be found but will or can NOT do it all alone? The major hurdle will be the $1B in capital costs. The Cr will be the icing on the cake, not the driving force.

As RN said, on at least one occasion, don't get paranoid about daily SP fluctuations.

Respectfully submitted

geoprof