MiningJunkie

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)

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Bentonstocks

Rank: President [?]

Points: 6383 [?]

Votes: 291 Score: 3.8 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

MiningJunkie

posted on Sep 11, 2007 09:51AM

MiningJunkie,

I am quite happy to a be a member of the fraternity of Norontolites...

My thoughts are similar to yours, which is why I suggested to M1 that he double his $10/sh price target for 2008. I too noticed the significance of the pentlandite.

What I am now trying to get a handle on is a conservative estimate of NPV. For now, I am assuming a 500m X 50m X 100m (LXWXD) deposit to start. The depth is based on the vertical depth of the mineralization encountered in NOT-07-05. Any thoughts on what is fair assumption at this juncture?

My assumptions are:

1. Copper ore = 1.89 tons/yard = 2.24 tonnes / cubic metre

2. 500m X 50m X100M = 2,500,000 cubic metres

3. 2,500,000 X 2.24 = 5,600,000 tonnes of ore @ $530/ tonne (your number)

4. 5,600,000 tonnes X $530 = $2,968,000,000

5. Mine/plant development = $850,000,000

6. Mining/processing cost /tonne ??? Trying to reasearch V.B .costs right now, but I though I would put this out now for feedback.

The way its looking to me with these back-of-the-envelope calculations, is a $10/sh valuation for NOT, EXCLUDING the other projects. I have assumed $50/tonne for mining and pocessing cost for now, just to get an idea, and also further dilution of roughly 56,000,000 shares for further equity financing required for mine development. I expect that would also be debt financing, and my figures are just guesstimates for now. Anyone with more precise figures, or different figures, please speak up.