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 NPV is a little higher now

Prices and demand for Canadian resources are going to keep growing in 2011, fuelled by a “tsunami” of Asian investment dollars flowing into Canada, according to a Scotiabank

http://www.theglobeandmail.com/globe-investor/markets/markets-blog/commodities-ripe-for-further-gains-in-2011/article1845843/

The PA is based on metal prices derived from the Three Year Trailing Averages as follows:

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    Nickel          $9.08 per pound
    Copper          $2.92 per pound
    Platinum        $1,427 per ounce
    Palladium       $345 per ounce
    Gold            $944 per ounce

The stand-alone economics of the Eagle's Nest Ni-Cu-PGM deposit, based on the Assumed Metal Prices(1) are:

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    -   after tax NPV at a 6.0% discount factor of approximately $540
        million;
    -   after tax IRR exceeding 20%;
    -   at current spot metal prices, the after tax MPV increases by
        approximately 250 million and the IRR increases by an additional 5%
    -   initial capital investment estimated to be between $600- $625
        million;
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