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: The NR

God bless You Herb because I not only like the way you think but how you present that thinking on the forum. Now that the flattery is done :

Of course we want that nickel mine built as soon as possible but it takes a lot to deliver the equipment on site to build that mine and to deliver it you need the road. For the road we, Cliffs or with some other combination, has to build it. For that we need permits and the Ontario government has to be involved.
This is like building up dominos, mostly sequential and it is the initial processes that need to be started now. The infrastructure study is a start.
I know, you me and a few others would have liked it done by now, but it takes time and money.
'Rome was not built in a day'.
You need to establish a sizable resource and use that as collateral against the financing. Without documented basis for financing no one will finance or the financing would be so
prohibitive that it would not be feasable to proceed.

Wes & company is doing a great job of progressively building one brick at a time. Once some of the basic infrastructure is built he will have something to show. By that time a lot more drilling will be completed and again more to show and brag about to the financiers. I suspect that when most of the basics are done it will not take much of a sales job to sell the project to the financiers, they will probably come begging to be included.

Just a rule of thumb - It appears that the massive will provide several dollars of profit for every dollar expended. That is the crown of the assets. The disseminated which makes up the majority of the nickel is about a dollar of profit per dollar expended. That is just the meat.

The chromite is likely to be in worse shape then the above two because even if one corners a large part of north America's market the profits probably will be just tens of percentage points over expenditures in the first years until the capital is paid off. Should the market turn as it often does then production would need to be stopped due to lack of profits. Who pays for the interest on the capital then?

Once we have road access, it might be possible to build a mid sized mine in about two years provided that large equipment is ordered months before start of construction.

If it were possible to largely mine the massives first then the pay back to cover the capital expenditure on the mine would be done with quickly. Presumably over the years metal prices rise and it would be appropriate to mine the lesser quality ore later and still have nice profits.

However I would not look for the dividend cheques until about the fifth year and after. I mostly depends on how much more and quality of resource we find.

Note, I did not use a calculator for the above comments. Cheers.

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