Just got off the phone with Neil.

Yeah, there's money in the bank. Shouldn't be any issues there with regards to any prefeasibility study contemplated.

A number of points:

1) the aggressive actions by Cliffs weren't expected by Novak and Smeenk - Neil & Smeenk expected "business" to continue as per normal [I guess the dropping of the Cliffs rep on the KWG BOD showed Cliffs' true colors]

2) I think #1(above) is true because although Novak and Smeenk admire what each has done up at the ROF, they are still not "bosom buddies" - Neil indicated as much - their histories as companies clearly also show this

3) but both guys know that the merger option is the only way to stop the stealing of Big Daddy for 13 cents a share - so merger it must be

4) Neil believes something has "changed" within Cliffs - he doesn't know what, therefore you and I won't know either - that's why they made their hostile bid [my guess is that some Cliffs' Board member said "Let's get these little pukes out of the way"]

5) although the MICON report is valuable, Neil and Smeenk will be consulting other engineering firms (ie., not all eggs are in one basket) - I asked about metallurgical studies (there is enough $$$) first before drilling - he said that it's one possible route but he will gather other consultant's input (as will Smeenk)

6) the Laurel Hill group is responsible for working with retail shareholders and advising them [so there's no need - it seems - for us to follow the "Noront model" for any retail investor action] - if action is needed to gather "votes", Laurel Hill is responsible for doing this ie., phoning investors - Neil receives reports from Laurel Hill on a daily basis.

So there's some feedback. Neil is constantly in meetings. Clearly there's a great deal of activity. He feels confident, but would be very upset if SPQ [and KWG] went for 13 cents.

So we must be vigilant. A big date for Spider Resources (June 11) this week, and big dates in early July. I will contact Neil again when appropriate.

Snug