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: Where will the Real Money come from ? Reality Check

Help is fine, but how much do we need ? Where does the real (development) money come from ? Unless there is a long term commitment to fair resource taxation, the majors will not be looking to spend a billion or so to shake hands with a less enterprise oriented government six or ten years out. The current nightmare Aussie experience will send them looking for much longer term taxation commitments, such as a TFZ. Very naive to think it won't happen here, since we already experienced a round of it in the nineties. The mining community collectively lost somewhere in excess of $25 billion in cap in the last 72 hours of trading just in case you did not notice. Forget the government frills and fender skirts, the majors are in trauma and will be seriously hunkering down on new mine development. They will want long term deals with the governments, and at our level of play, we are caught right in the middle of the mess. Drill, drill, drill, hope to hit money ?

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