Looking at the last 2 news releases, there are a couple of points that are interesting:
Chromite - Although the market has discounted the chromite at this point, I beleive that it is telling that Noront has drilled a total of 52,344 metres which is over 52 kilometres. I beleive that the average cost per metre os drilling is roughly $300-$350 which would equate to $15MM-$18MM. Foolish expenditure, I think not. Value will be recognized soon enough.
In the June 29 exploration update, it stated:
- At Eagle One, hole NOT-09-049, drilled subvertically below known
mineralization, intersected two zones of disseminated, semi-massive
and massive sulphides, one from 269.54 metres to 510.69 metres and
the other from 749.7 metres to 945.67 metres; more than tripling the
known down dip extent of the mineralization to greater than
900 metres;
- Hole NOT-08-045 at Eagle One, deepened in 2009, intersected 46.12
metres of nickel, copper sulphides including two short intervals of
massive sulphides;
- Hole NOT-09-047 at Eagle One intersected 2.15 m of nickel, copper
sulphides including 1.75 m of massive sulphides approximately 275 m
below surface;
In my last post I cautioned about not getting too excited because at this point we do not know the composition of the NOT-09-049 mineralization. Having said that, it is difficult to not get excited by the this contained in today's release:
Noront is currently in the process of drilling deep, Bore Hole Electromagnetic (BHEM) platform holes at Eagle One. The company's initial BHEM platform hole, NOT-09-049, intersected significant massive sulphide mineralization which was disclosed in our June 29, 2009 Press Release
and
Noront's Chief Operating Officer, John Harvey notes, "in view of the impressive mineralization intersected by NOT-09-049
Reading bewteen the lines, I would suggest that the two new zones identified will host significant massive mineralization. I do not think that managment deems the short intervals in holes 45 & 47 as significant, otherwise the release would have stated so.
The game has changed and I suspect that we will continue to see more promotion and share price appreciation. Kinda gettin fun again.
Cheers,
Milsy1
