Hi

Thanks
QQ_Girl

Here is an easier to read format of the Genuity comments , hopefully. Nice Buy target of $3.50

Jacki

Noront Resources Ltd.
NOT-V: $1.58
February 2, 2010
TARGET: $3.50
RECOMMENDATION: BUY
RISK RATING: SPECULATIVE
Michael Gray – 604.694.6961
Michael.Gray@genuitycm.com
Samuel Jang (Associate) – 604.694.6964
Samuel.Jang@genuitycm.com
Final 2009 Eagle’s Nest assays reported
(all figures in C$, unless noted)
Price (2/2/2010)$1.58Total return to target122%Shares O/S (m)165.4Shares F/D (m)176.8Market cap F/D ($m)$279.3Market float value ($m)$235.210-day Ave Daily Vol (m)0.6Debt ($m)0Working Capital ($m)$40.9FD cash ($m)$47.212-mo Burn-rate ($m)$25.2Shareholders10% Mgmt~9% Sprott Asset Mgmt~9% Rosseau Asset Mgmtless than 5% Pinetree CapCEOWes HansonDirectorPaul ParisottoDirectorJoseph HamiltonDirectorAlex DavidsonDirectorPatrick AndersonDirectorDarren BlasuttiDirectorKeith McKay
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This morning, before market open, Noront reported assay results from the final five drill holes from 2009 that tested its 100%-owned Eagle's Nest Ni-Cu-Pt-Pd deposit, McFauld's Lake project, James Bay lowlands, northern Ontario, Canada. The drilling was part of a delineation program to sketch in the massive and net-textured Ni-Cu-Pt-Pd mineralization at the Eagle's Nest deposit between vertical depths of 300-1,100 metres.
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Significant massive sulphide intersections included:
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8.7 metres of 5.82% Ni, 1.62% Cu, 0.05 g/t Pt, 6.62 g/t Pd at a vertical depth of 1,050 metres (hole 64W1)
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10.5 metres of 6.51% Ni, 1.68% Cu, 2.00 g/t Pt, 8.18 g/t Pd at a vertical depth of 540 metres (hole 75)
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6.7 metres of 7.41% Ni, 1.26% Cu, 0.93 g/t Pt, 6.64 g/t Pd at a vertical depth of 500 metres (hole 74)
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The massive sulphide intersection in hole 75 with 2.00 g/t Pt appears to be within 5-20 metres from the previously reported high-grade 37.87 g/t Pt over 5.7 metres intersected in hole 70W1. Therefore, we believe the high-grade Pt distribution may be more spatially confined, pending follow-up drilling. Hole 73 intersected a 59.8-metre mineralized interval, but the massive sulphide interval was not broken out. Wedge hole 71 was stopped due to technical drilling problems.
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Noront also reported that its Eagle’s Nest resource estimation will be accelerated to Q1/10 from Q4/10, as the drills are currently shut down in connection with a First Nations blockade of ice airstrips for fixed wing aircraft into the region.
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The results are incrementally positive, but do not impact our valuation. These infill drill holes at Eagle’s Nest continue to document high-grade massive sulphide zones that appear to have good vertical continuity. We value Noront on a DCF8% conceptual direct-shipping model for 2.4mt of high-grade massive sulphides to derive our target price of $3.50. We continue to recommend NOT as a BUY.
Genuity Capital Markets www.genuitycm.com
416.603.6000 2
Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund,
Participating Organization of the Toronto Stock Exchange