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: Re: The ROF - Views from the PDAC-Oxfords
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Mar 21, 2009 02:38AM

Re: The ROF - Views from the PDAC-Oxfords

posted on Mar 21, 2009 10:40AM


Oxfords, you asked if I had drawn any conclusions re NOT/ROF……I have and am prepared to share them and a number of observations with you and other members of the forum, for what they’re worth.



In general terms, knowledge of the regional geology in the ROF area is rudimentary at best, interpreted primarily from the airborne magnetic surveys. Outcrop is almost non-existent. Exploration costs are relatively very high due to the area’s remoteness and its terrane. Continuous ground exploration throughout the year has proven problematic due to seasonal climate changes. Although the area has demonstrated potential for base metal (Ni, Cu, Zn), PGE and Cr mineralization, its gross mineral potential is presently unknown. Although Au has not been a target, highly anomalous values in a couple of drill holes suggest that it too could be present in interesting quantities………for example, consider the metallogenesis of the Abitibi greenstone belt.



Not all exploration companies would choose to explore in this area…….either they are not prepared to spend the level of funds necessary or they would have difficulty in raising sufficient capital to do so. Many feel that they can get a “bigger bang for their buck” closer to existing infrastructure.



The global mining and exploration industry is, for the most part, in a “survival mode”, awaiting an upturn in commodity demand and prices as we go through yet again another economic cycle.



NOT’s current policy of when they release drill core assays is unreasonable in my opinion and is not satisfactorily explained by comments re quality control, wait till we have more, etc…………this self imposed silence has been questioned by many in the mining community and has only served to raise suspicions re the credibility and competency of their BOD.



Questions surrounding potential conflict of interest surfaced during the term of the previous BOD…………this should be re-examined in light of the current BOD.



Unless several more Eagles are discovered and/or a major makes a significant in road into the ROF, movement of NOT’s SP will continue to reflect only changes in general market sentiment and fluctuations in Ni price. The value assigned to the chromite will continue to be much more heavily discounted than the Ni/Cu/PGEs.



The euphoria generated in the Fall of 2007 with the discovery of Eagle 1 has long dissipated. Expectations have not been met. A lesson learned from the Voiseys’ Bay discovery should be kept in mind…………I believe that INCO did not ”tip their hand” so to speak until >25M t had been outlined by Jan 95 by Diamondfields.



Do you buy, sell or hold? I am in for the long haul and am comfortable with my existing “modest” investment in NOT.



Respectfully submitted

geoprof



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