Apparently, there are some (Kaiser included? and if so, that's okay) who are discounting our chromite find.

It has been posted on this forum before that 1 Bn dollars is 1 Bn dollars whether it be in chromite or widgets. (maybe our share price would be performing better if we were exploring for widgets :)

Let's talk chromite.

Nobody cares about chromite because there is an abundence of it - global reserves of 1 Bn + (I cannot recollect the exact number but let's use 1 Bn tonnes).

At present, there is much speculation as to how much chromite ore will ultimately be revealed in the JBL's. We have heard as per Mac at FWR, they might have 100 million tonnes. Richard apparently has stated that there might be 15-30 Bn dollars worth (NOT alone or in conjuction with other companies, we do not know at this time). I am going to be liberal for the purpose of this demonstration and assume will we ultimatley have 200 million tonnes. (stay with me, liberal is conservative)

Okay, I am also assuming that all global reserves average the same high grade to date of Noront's results - 40%Cr2O3 with a lumpy consisencty (which I do not beleive to be the case) and therefore would have a contract price of roughly $600.00 per tonne.

One final assumption (because I am too tired to find the number) that global annual demand of chromite ore is 5 million tonnes).

If Noront and other JBL companies do not prove up enough chromite ore to justify a mine, chromite consumption will continue to increase at the expected 7% per year with likely a same increase in price, all other things being equal.

However, what happens to price when 200 million tonnes of additional reserves is proven?

Two scenarios:

1) Previous to our discovery, end users are paying $600.00 per tonne for 5 million tonnes. After our discovery, global reserves have increased from 1 Bn tonnes to 1.2 Bn tonnes or 16.6%. Again, assuming all other variables stay the same, the price for 1 tonne of 40%Cr2O3 drops from $600.00 to $500.00. At this lower valuation, JBL's in-situ valuation is only 100 Bn dollars.

2) Nothing happens to the contract price of chromite ore. A major looking to protect their interest pays a percentage of the above mentioned in-situ to the shareholders of each involved JBL company.

Although it is too early to take our collective 200 Mn tonnes to the bank, it is also too early to be dismissive as well.

One billion is One billion. 20 billion is 20 billion. etc

Keep your eye on the prize (as muddied as it might be)

Cheers,

Milsy1

Note: a little envious of Crazydik over here.