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: Fundamentals

Fundamentals

posted on Jun 11, 2009 03:31AM

There are two fundamental terms that need to be addressed before we get respect with regards to our share price. First of all is "Supply and Demand" Our chrome is a very valuable commodity when you apply a historic price to an estimated insitu tonnage. However there has to be a demand. Right now there is no demand and an abundance of supply. This has an obvious effect on the price. No matter what the commodity, whether its jelly beans or ferrochrome, this fundamental law of economics rules.

Second fundamental is the definition of ore. Ore is defined as any material that can be mined at a profit. Hoov mentioned in a "tongue in cheek manner" in his post that we have all this "worthless" chrome. At this point in time, it is worthless, just like the ore in South Africa that has been shutdown is worthless. If you had a million dollars in your pocket while stranded on a deserted island, it would be worthless. The chrome and nickel at this point don't meet the definition of ore, because we do not have the supporting evidence that it can be mined at a profit.

Now that doesn't mean it never will. As Googleye posted, NOT is drilling for a reason and they have a team of professionals that can get work anywhere doing meaningful satisfying work but they choose to stay at Noront. Global economies change which alters the supply and demand chain of events. Ore bodies get redefined in terms of size and profitability based on those economic changes. We will get off the island and put that million dollars to use.

I put more credence into these two fundamentals keeping our share price down than manipulation or conspiracy theories. People are selling because they don't have the patience to wait and they see other opportunities. There are others who are accumulating when they can and they DO have patience to wait to buy it at a certain price range. Simple as that.

Mike

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Jun 11, 2009 07:20AM
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