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: Eagles nest 3D

Let me preface this post by stating that what follows is not scientific but based upon my observations of the 3D model as furnished by NOT.

Again, as per the N/R:

The mineralization at Eagle’s Nest is contained within a vertical zone (Z axis) which, has been defined to a depth of 1,000 metres. The zone has a strike length (N-S or X axis) up to 200 metres and a width (E-W or Y axis) of up to 60 metres.

We know that the deliniation of the original deposit E1A was to a depth of roughly 225 metres which means that beyond E1A there is roughly 775 metres of continuous mineralization. (so far)

The strike length "up to 200 metres" is applicable to E1A only which can be clearly seen in the 3D model. The width is "up to 60 metres" and the model looks to be fairly consistent but I wil use 50 metres as an average width.

Again, based upon my observation of the 3D model, I have broken down the 775 metres of mineralization below E1A as follows (from top to bottom):

-175 metres with an average strike of 50 metres and width of 50 metres

-260 metres with an average strike of 100 metres and width of 50 metres

-340 metres with an average strike of 50 metres and width of 50 metres

The cubic metres for each of these sections are:

175 X 50 X 50 = 437,500

260 X 100 X 50 = 1,300,000

340 X 50 X 50 = 850,000

Therefore, the total cubic metres below E1A to a depth of 1,000 metres is 2,587,500.

In order to determine how many tonnes of ore we have, we need to know what the density is per cubic metre. Again, these are:

Massive Sulphides - 4.34 tonnes/m3

Disseminated - 2.98 tonnes/m3

How much of the mineralization is Massive and how much is Disseminated? If we assume that mineralization will be consistent with the 43-101 on E1A then 15.5% will be Massive and 84.5% will be Disseminated. (450,000 tonnes massive - both indicated and inferred / 2,471,000 tonnes disseminated - again both indicated and inferred)

So,

2,587,500 X 15.5% X 4.34 = 1,740,275

2,587,500 X 84.5% X 2.98 = 6,514,325

Total 8,254,600

Add this to our exisiting tonnage for E1A (2,921,000) and there appears to be in the neighborhood of 11 millon tonnes plus at or above the 1,000 metre level.

I for one am looking forward to continued deliniation with the two drills in this zone and hopefully a new "blob" by the two drills going deeper.

Cheers,

Milsy1

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