Tantallon,
Yes, it is disappointing to confirm after mining the 'rich' panels 1-7 at McWatters that they were not as rich as the 43-101 report had estimated. Mother nature can do this at times between drill holes - even closely spaced ones at 12.5 - 15 m apart as in this case. However, the development drifts through the 65, 85, 120 and 140 levels produced material with grades close to the reserve grades through those parts of the mine in ore that represents 90% of the ore body. This means that there should be no negative surprises going forward and that perhaps this might mean that as we as shareholders look forward to hearing this news that mining might be 2-1/2 t imes the ore grade from the sublevel caving as compared to open pit ore. Which in all likelihood will mean that there will be cash generated to meet LBE's liabilities and commitments which is therefore expected to happen from operations. The amount of revenue made depends not only on grade but also on the price of nickel, which to be real honest no one has any control over - having said this some of the reports which I have read have indicated/forecasted that the price of nickel might reach and maintain $12/lb. Greate news is that Ni is 2 1/2 times that compared to 2 years ago this month when LBE had to shut down operations, so things are very different today.
My understanding is that LBE does not have any capital projects until the spring when Hart is slated to start [keep fingers crossed]. What I see is that JJNICL has provided bridge loans as necessary to get LBE to the point where it can start to generate good cash flow and pay them back.
LBE also continues to advance the mining to feed the mill as much as is permitted on a daily basis and this continued strength coupled with the current commodity prices means, imo, that growth is inevitable.
Happy Trails,
-B1-
