NEIL NOVAK

Education

Graduated from University of Waterloo in 1977 and immediately became involved as a project geologist for the Canadian operations of Australian based uranium explorer Pancontinental Mining Ltd.

History

Twenty-eight years experience in the mining industry, the last 10 of which have been directly related to the diamond exploration industry.

In 1983, Neil left Pancontinental and formed a private consulting company, Nominex Ltd. As managing director of Noninex, Neil became involved in various North American and International exploration assignments.

In late 1992, Neil prepared the geological report that supported the initial prospectus for Spider Resources Inc. in his capacity as consultant to the founders of Spider. Spider Resources Inc. became a public company in early 1993. Neil became an active board member and senior officer of Spider in 1995 and remained as such through to early 1999. Neil was re-elected to the Board of Spider in September 1999, and was re-appointed as Vice President in November 1999 and as Secretary for the corporation in January 2000. In June of 2003, Neil was appointed as the Chief Operating Officer of Spider.

In 1995, Neil joined KWG Resources Inc. and Ste Genevieve Resources Inc. as the International Exploration Manager for the group of companies; he remained with Ste Genevieve/KWG until November 1997, then helped both companies in their corporate restructuring through 1998.

In 1997, Neil in his capacity as International Exploration Manager for the Ste. Genevieve Group of Companies was appointed President of Ambrex Mining Corporation, (later changed name to Karmin Exploration).

In January, 2000 Neil through his ownership of Nominex Ltd., teamed up with Norman Brewster to form the consulting company Billiken Management Services Inc. Neil is president of Billiken Management. Billiken entered into a contract with Spider Resources Inc. and joint venture partner KWG Resources Inc. to manage all exploration activities of the KWG/Spider joint venture in the capacity of "appointed manager".

Neil through his involvement in Billiken provides geological consultation and assists in financing various other resource companies, and as a partial result, in November of 2002, Neil was appointed to the Board of Noront Resources Inc.

I apologize folks for taking so much time.  I had three glasses of red wine at lunch.  It was held by The Richmond Club at the National Club on Bay Street.  Rather hoitee-toitee.  Reeked of money, actually.  But once we all make some excellent $$$$ with SPQ, we must invite Jeannie to join us all for a lunch and numerous bottles of wine at the National!!!!

When I got home, and after I heard that Kelsee was shoveling snow, I felt really sorry, but only for a second or two.  When I read about all the women waiting for me - my communication - my heart raced.  Ah... it's a difficult job but someone's got to do it!!!

So here's the scoop.  BUY, HOLD, and GO LONG.

Richard Nemis and Neil Novak were at the meeting.  Michael White of IBK made the "dog and pony" presentation.  I have numerous points so be patient.  Remember these are MY notes, they are subjective, and should be understood as such.  If you have any questions, post them on this hub.  I will try to answer them.

a)  Michael White of IBK made presentations over the last week or so in Europe: London, Brussels, Frankfurt, and Monaco.  I think there was another European city, but I have forgotten.  The NOT and Ring of Fire story was received with great interest.

b) Michael will be in New York City and Boston on Monday of next week.  There may be other USA visits.  He probably will be visiting citiies in Asia the week after.

c) From another guest who flew in from Montreal, it was mentioned that JP Morgan was hired by a very large mining company to assess NOT and the Ring of Fire.  I can not confirm this, but it was suggested that the large mining company was XSTRATA.  Remember that I can't confirm this, but where there's smoke, there's fire.

I have mentioned the above information from IBK and JP Morgan (investment companies) because Michael White mentioned twice a time-frame of 12-18 months for a larger investor to bid for the "Great Canadian Area Play".  This speaks to the strategy being employed by Nemis, NOT, and Novak.  (My personal comments directly on SPQ I will put a little further down.)

d) I asked this question of Mr. Nemis:  Can you enlighten me on the tangled web of joint ventures with regarding to NOT and the Ring of Fire?  He replied:  It is my strategy to have as many as 15 JV's sign with Noront.  Noront has staked many new claims (a new claims map should be out tomorrow - Kelsee).  They want to option off many of these claims.  The Ring of Fire is much, much too large for Noront to explore by itself.  He has two (recent JVs (WSR, Hawk?) and six more on his desk.  Each JV will pitch in $5 million; however, Noront will hold 50%+ ownership and hold operating responsibility.

Why is the above info important?  It is clear from today's meeting and the NOT AGM that Noronto, that NOT will drive much of the exploration at the Ring of Fire.  Nemis wants to be able to present in 12-18 months a 50%+ package to the likes of XSTRATA, CVRD, or some other Major.

Not only will the 50% NOT package look really good to the Major, it will benefit the JV.  Their shares will also see a strong upside.  Everyone wins.

It was also mentioned once again two other points that will look really good to the Major.  1) They will not have to build a smelter.  There are smelters in Sudbury, Ontario and Thompson, Manitoba.  2) A road to the Double Eagle location will cost just $2 million.  Peanuts to a Major.

e) NOT will focus its drilling at Double Eagle, and SPQ/FWR/FNC will focus their drilling at the PGM and chromium site close by.  I inferred that they feel there's a stronger possibility of significant finds in those locations.

f) Nemis wants Noronto to have as many as fifteen (15) drill rigs on site.  Drilling is costly but a necessary evil.  The Major will require this information.  (This does not include SPQ/FWR/FNC drill rigs.)  If this number of rigs find their way to the Double Eagle, there probably will be one more NOT financing.

g) NOT assays for holes #13-#16 are imminent.  They have "visuals" for holes #18-#26.  Novak said #18 "looked" like #5 (the "glory hole").

h) Phase #1 or the aerial survey has just been completed.  Phase #2 will be completed by year end.  There are four (4) more phases to be completed.  Sorry, I have no more information than that.  However, if each phase takes 4-6 weeks, the survey should be completed sometime in 2Q08.  I believe this information will be critical to selling the Major. (I heard from Novak that the TDEM survey looks down 150 meters into the earth.)

Final Impressions & SPQ

When I saw Nemis and Novak walk in together, I said to myself, "These guys are working closely together: one's the salesman, the other, the geologist (technical credibility).  NOT and SPQ, to my mind, are just about one and the same.  As the fortunes of NOT go, so will SPQ.  How much SPQ's share price will appreciate with this scenario can only be guessed at.  However, my guess is significant.  (I'm still planning on a 2008 Holiday Season party.  If the share price gets to $3.00, I'm changing the location to somewhere in Austria.)

The bottom line:  it's imperative to be PATIENT.  The story is not even half-way out.  There's going to be lots of froth... I mean lots of froth.  But if you buy at these bargain basement prices, you can expect a multi-bagger.  One more big find by NOT or SPQ or FWR or FNC and share prices will move sharply up.  And this will only happen with the drilling going on, and the rest of the 2008 winter drilling program.

SPQ is an important part of a much larger play.  It's VMS locations are already documented and will be better defined by the TDEM surveys.  It will be a juicy morsel for any Major, and is part of the larger NOT JV strategy.

Regards, Snug

If you haven't had a listen to the Noront AGM, I suggest that it might be a good idea: a strategy is being hatched which will likely impact SPQ's share price in a very positive manner.

http://www.vcall.com/IC/CEPage.asp?ID=122308

Neil Novak impressed me at the AGM.  He speaks intelligently, he knows his geology, and (when you listen to the AGM) he knows his $$$$.  Clearly he is a very important Noront Director and well respected by Richard Nemis.  This personal association is the first key point.

The second key point was outlined by Mr. Nemis: working with other juniors (SPQ, FNC, FWR, and PRB were mentioned), Noront will work as the "lead operator" to create a McFauld's area play.  Options will be taken on each other's properties will mean that all of the players will be working together to maximize shareholder value.

The third key point is that mining majors (XSTRATA, CVRD, Diamond Fields were all mentioned by Novak) and major individuals have been calling and visiting "the ring of fire."  Therefore, upcoming drill results by any of NOT, SPQ, FNC, FWR, or PRB. will further whet (sharpen) their appetite.

Finally, I sense that Neil Novak has been spending a great deal of his time busting his butt working with Nemis and Noront in order to present "a package" to the majors.  SPQ is an integral and important part of this package.  It has a large land area as part of "the ring of fire", which is very valuable. 

SPQ's share price is a STEAL.  Take advantage.

Snug

Below I have copied just SOME of the Cu only finds that SPQ has made..
SPQ has made double those findings in VMS style Cu Zn findings...
In total SPQ has found more than 10 of these types of deposits....the reason I only selected these (I will post the others another time), is because I believe, as my Geology post suggested, that these Cu only deposits are related to the MMS Ni Cu etc, deposit...Although SPQ had not been looking for them,my theory suggest that these MMS Ni Cu deposits may in fact exist in SPQ claims, and with the new HIGH MAG maps, SPQ will be able to outline them much easier...

IMCO

JD

On Sept/05, a drilling program was conducted on the seven occurrences
identified to date located on the Joint Venture’s 135 square kilometre
property. A VTEM airborne survey (January, 2005) and ground geophysical
follow-up survey over the project claims were also conducted. Preliminary
results from the VTEM and previous Geotem airborne survey revealed
additional targets in the vicinity of the McFaulds Lake VMS occurrences.
The most significant result during the year was obtained on the McFaulds
#3 occurrence where hole McF-04-57 intersected 8.02% copper over
a drill length of 18.8 metres. Further drilling will eventually be
required to fully test
the size of the three known targets, with the ultimate goal of confirming
the existence of a mineable reserve.

On Apr 07/05, received the assay results for the McFaulds Lake project.
The assay results for drill hole McF-05-64 intersected 5.0 m grading
4.02% Cu, 0.4 g/t Au and 10 g/t Ag. Within this interval there is
an upper 1.55 meter section grading 9.1% Cu and a lower 0.7m interval
grading 6.5% Cu. The Gold and Silver values are consistent with the
surrounding holes as is the relative lack of zinc. The drill results
indicate that the Alteration and Mineralization Zone has narrowed
to about 10m and the massive to semi-massive consisting of chalcopyrite
and pyrite has narrowed to 2.25m within the main sulphide zone of
5m (248.6-253.6m). Further results are pending.

For the period ending Mar31/05, resumed drilling, four new holes
intersected massive to semi-massive sulphide mineralization. A fifth
hole designed to test a deeper section of the volcanic stratigraphy
down plunge from the copper bearing drill-holes intercepted massive
magnetite with minor bands of chalcopyrite. On the MacFadyen Diamond
Project, drilling commenced in March with the objective to test the
deep magnetic dike-like structure located peripheral to the five
kimberlite pipes discovered on the property. KWG-Spider was still
awaiting results from the two five tonnes mini-bulk samples collected
from the Wawa diamond Property last fall.

On Mar 07/05, received assay results from the third and fourth holes
of the winter drill program. Drill hole McF-05-60 intersected a total
of 7.16 m grading 1.9 % Cu and within drill hole McF-05-61 intersected
3.5 m grading 2.2 % Cu, and within these intervals narrower intervals
of higher-grade copper were reported.the preliminary results of the
VTEM airborne survey have been received. Five significant magnetic-
electromagnetic anomalies with a total strike length in excess of
six kilometres have been identified by the joint venture from the
preliminary data. Two of these anomalies are located in the western
end of the claim block with one covering 10 flight lines (1.5 kilometres
long) and the second being significantly longer and formational in
nature.Grids are being cut on the best portion of the targets in
preparation for drilling this summer.

On Feb17/05, received assay results for the first two holes of the
winter drilling program at McFaulds Lake. Drill hole McF-05-58 intersected
a total of 10.2 m (265 m to 276.4 m) grading 4.84 % Cu, and within
this interval, there is a 9.2-m section grading 5.72 % Cu. Drill
hole McF-05-59 intersected 10.65 m (283.8 m to 294.5 m) grading 6.4
% Cu, and within this interval, there is an 8.5-m section grading
7.9 % Cu. Currently hole McF-05-62 is under way and is designed to
test the down-dip and downplunge extension of the mineralization
described above and this hole will be the deepest (minus-350-m vertical)
drilled on the McFaulds No. 3 body (occurrence) of massive sulphide
mineralized to date.

In Jan/05, a VTEM airborne survey was completed. To date, seven (7)
new base metal sulphide occurrences have been located on the property.

On Jan31/05, intersected significant massive sulphide thicknesses
in the first two drill holes of the winter drill program on the McFaulds
Lake # 3. Drill hole McF-05-58 intersected 12.4 m (264 m to 276.4
m) and drill hole McF-05-59 intersected 15.15 m (280.85 m to 296.0
m) of massive to semimassive sulphide mineralization similar in tenor
to that observed in drill hole McF-04-57 that had 18.8 m of 8.02
% Cu last fall. Drilling continues on the property.

Geological Theory/Facts of Genesis of McFaulds P.2

I seldom say this, In my view this post, with the up to date Geological information contained herein ,  is a must “keeper” to cut and paste, for future reference, to those interested/invested in the McFaulds Area….this post has taken weeks to research and put together….

Information credit will be given to their Sources, accordingly, and in all cases referred to herein, these are their professional opinions, based on their interpretations of fact findings studies , to which , I have then added/applied  my kowledge/information/opinions of the McFaulds Area…I have decided to post this information, knowing that I have met their requirements, which are proper “credit” and non commercial use…proper credits are listed below, and as you all know/may know, I have not /and am not being paid by anyone to post on these forums.. .I do so simply to provide information and my considered opinions…..just your usual cautionary statements…

The Purchase of
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I will begin with Prof. A.J. Naldrett, world renowned Geology professor and probably “THE” or one of , the world experts on MMS , Ni Cu PGEs …

I met Prof. Naldrett of a few occasions and attended a good number of his lectures on MMS Ni Cu PGEs, in Toronto, and have read much of his written papers on said subject, long before McFaulds came along….I will not go into very complex and extremely difficult geological terms and theories..I will try to describe some theories here, as simple as possible, under the circumstances of the very complex subject of geology in general and super complex McFaulds geology in particular….

Below are 3 general “findings” by Prof. Naldrett of his studies of worldwide MMS Ni Cu PGEs deposits :

"Magmatic Ni-Cu sulfide deposits form as the result of the segregation and concentration of droplets of liquid sulfide from mafic or ultramafic magma.When most major Ni-Cu sulfide deposits, including those at Kambalda, Western Australia, are viewed in the light of studies at Noril'sk, Sudbury, Jinchuan and Voice’s Bay, three factors become apparent:

(i) the concentration of sulfides in channels or conduits through which much magma has flowed (feeder conduits for intrusions are much more prospective targets for exploration than the base of the intrusions themselves);

(ii) (ii) the interaction of the source magma with country rocks, either leading to the incorporation of sulfur, or the felsification of the magma in question;

(iii) (iii) fractional crystallisation of sulfide liquid giving rise to Cu-rich ores which may be far removed from the 'source' ore.

Anthony J. Naldrett   Key factors in Genesis of MMS Ni Cu PGE implications for exploration."

The first point is relatively simple , and as I have posted previously, that these NI Cu PGEs sulfides are  accumulated and deposited in magma conduits or “feeders” conduits for much larger intrusions, wherein successive introductions of Magmas have occurred…BUT once you have ‘prospected “ and found these magma conduits mineralized with Ni Cu PGEs , then many Geologists recommend drilling much deeper for the “source” (parent) magma responsible for these deposits as these deeper bases of the Magma are usually also “mineralized”…especially in the case of McFaulds, wherein good evidence exists of the regional.presence of Chromite layers , and enxtensive titomagnetite layers, that are good evidence  for the proposition that very HOT, Dynamic Magmas , existed at McFaulds, and were responsible for the mineralized “feeder conduits” the type of Dynamic Magmas that could host Massive Nickel Sulfides, near or at their base….more on dynamic magmas and their “plumes” in another post some time…

from BMK news and my discussions :

That these thick madfic gabbro-ultramafic sills have high nickel and possible Platinum Group Element (PGE) potential has now been proved by the presence of nickel sulphide in more than one place, as well as the regional presence of chromitites and laterally extensive titanomagnetite layers  evidence for hot magmas of the type that may host large massive nickel sulphide deposits near their base.
The second point is extremely important and very relevant to the formation of McFaulds area deposits,  which would include the Speatacular NOT discovery, and the BMK Ni discovery, and of course hopefully many more as yet hopefully undiscovered discoveries…

"(ii) the interaction of the source magma with country rocks, either leading to the incorporation of sulfur, or the felsification of the magma in question;"
 
So then from this statement we conclude that in order for magmatic sulfides to concentrate in one area and remain in situ, either Sulfur from the surrounding country rock, or more importantly as in McFaulds case, “Felsification” with the contact magmas…

We have all heard and read many/most of the uninformed and geologically ignorant posters/doubters refer to the “granodiorite, which they describe as having limited NOT’s ore bodies. …..Nothing could be further from the “truth/facts”…

You will recall that in most all NOT drill holes to date, the mineralization ended in “ granodiorite”…It is my opinion, that ,  what existed prior to the NOT mineralization event, was Large “granite” bodies as the country rock…these “granites” are/were in fact all felsic, containing up to 65%to 90% of quartz and alkai felspars, therefore they are felsic. The “feslsificatiion” referred to above, potentially occurred when the “mafic” parent magma, probably a gabbro,  came into contact withand mixed with  the “granites” country rocks and assimilated and transformed it into “grano-diorite”, thereby felsification of the Parent Magma in question..so that diorite part, is the “mafic” component parts of the parent gabbro? magma, which assimilated with the “granites” felsic country rock , then  transformed them into “granodiorites”. This felsification,into the Granodiorite, in my opinion in this case is what created the “trap” for the Ni Cu PGEs sulfides, in situ, which  accumulated near the edges of this process….

So the “granodiorite” is GOOD news, since that was part of the Parent magma, and the “trap” for the Ni Cu PGEs  mineralization in NOT’s Area discovery…Thus  the granodiorite does not limit NOT’s Spectacular discovery, or many likely future such discoveries in the McFaulds area…….

The third point is:

"(iii) fractional crystallisation of sulfide liquid giving rise to Cu-rich ores which may be far removed from the 'source' ore. "

As most of you know, SPQ has discovered many, more than 10 so called VMS deposits containing Cu and Zn…However some of their discoveries were only Cu with no Zinc…some were as much as 8% Cu…..this leads me to believe That those Cu only discoveries , were as the result of “fractional crystallisation” of the parent magma/s that gave rise to Ni ores, which may be far removed from the source(parent) ore…

Implications of this“fractional crystallization” for McFaulds may be;

1. These rich Cu only discoveries made by SPQ are part of the magmatic processes which gave rise to the Ni Cu PGEs of NOT and likely many other such deposits along the belt at McFaulds..
Alternatively, these SPQ Cu only discoveries give potentially, some evidence that such Ni Cu PGEs deposits also exist in SPQ claims, both east and west, since these Cu discoveries were made some 25 Kms east,  and 25 Kms west ,and  away from NOT’s Ni Cu PGEs deposit.
Further confirmation of these Ni deposits, spread out throughout  McFaulds belt, comes from BMK who discovered a 93 Ft. section of drill core assaying about .40% Ni., in their MacNNUGET claims some 25 Kms west and away from NOT, which BMK is drilling now…

2.  Thus there is both evidence for a GIANT parent magma, for the entire McFaulds area, or more likely,a series of Large mafic magma intrusions which potentially gave rise to a series of Ni Cu PGEs deposits, and farther away potentially the Cu only deposits and potentially, Massive Sulfides Ni deposits at their base,  as above noted….

Here are some other very important and NEW findings/interpretations about the Geology/Geological setting for McFaulds…this information is borrowed from MNMD, Ont Gov. Open File Report-OFR 6192, Scott and Rainsford, 2006,  from Aeromagnetic data , and revised terrain maps….this report is their interpretation of the data collected…

I would advise anyone who is serious about learning more on McFaulds Geology, to obtain a copy of said repot, (doesn’t cost much), but it gives you much additional information/data, a great number of maps and other illustrations data and information for the entire Hudson’s Bay/James Bay Lowlands etc…I am only going to quote a couple of items in this post, of this very large and informative geological/geophysical report, which I consider very important indeed…which as I read the fine print, is allowed, provided one gives the report “credit”, and it is for non commercial use, as noted above…

OFR 6192 Scott, Rainsford…2006
From Aeromagnetic data, and revised terrain maps…

Some features to note:

-" The merging of greenstone belts of Uchi domain and Oxford–Stull domain under the James Bay Lowland;"

Of course, these is a very complex set of Geological factors which cannot be explained easily,
Or ascertained to any degree in one study, however, certain assumptions may be theorized, such as the reason why these 2 distinctive Geological Units have “merged” under the James Bay Lowlands…This MAY indicate some evidence for plate tectonics, more particular “subduction zones” or crustal growths thru “rift”which have “merged” these 2  UNITS together..
Some other potential evidence for this “subduction zone” and crustal growth is stated below, wherein an “INDENTOR” taken to mean an indentation, or a lowering of the James Bay lowlands terrane, as compared to the surrounding rocks, sometimes referred to in Geology as similar to a Graben…additional  important data  from this statement below is that this “indentor” is flanked on each side by FAULTS…you will see this more clearly if you obtain the full report…
Now the “GRABEN” concept/idea is my opinion, since the geological definition of Graben is
“ an elongated depressed crustal unit, or block, that is bounded by “faults” on it’s sides”…it may or may not be expressed as a “rift valley”….

How my “GRABEN” description  importantly relates to the Ni Cu PGEs mineralization is somewhat clear, since some of the World’s largest Ni Cu PGEs deposits like Norlisk in Russia occur within  these types of “GRABEN” or  “indentors” "low lands" ..At Norlisk it is described by Naldrett as a  3.5 Km thick “volcanic basin” in/near the axis or keel of an anticline formation, that is thought to have brought these deposits to near surface…these Norlisk deposits are world class and account for LARGE portion of Ni Cu and of course PGE’s..Russia being the world’s MAJOR producer of Palladium…you will also notice a number of “DOMES” and anticlines in and around the McFaulds lake area from the Geo maps posted…

- A large indentor-like feature underlies the James Bay Lowland, flanked by faults; -

Debate has grown as to the AGE of these MMS intrusions…The statement from the said report below, may shed some light into this discussion…I have read and that some samples taken from the McFaulds and adjoining areas,  area were dated from 2737 to 2696…A;though I previously posted that these rocks were Proterozoic,, or earlier,  that was not exactly correct. They are about 200 Million years older… The Archean age ranges from 3.8 to 2.5  Billion years old…the youngest known as late Archean  2.9 to 2.5 Billion years old.. Proterozoic age starts after 2.5 Bill…so the dates quoted in some reports show that some of these intrusive rocks underlying the Paleozoic limestone are of late Archean ages aound 2.7 Billion years old,…some of the surrounding rocks are of early Archean ages 50+ more years older……From reading may publications, and mapping of World MMS Ni Cu PGEs deposits,  especially from Prof. Naldrett, it seems that the older the rocks the higher the sulfide content of Ni etc…, since the theory is that the earth’s Mantle, was somewhat more HOT Dynamic and Violent , than it is today, as it is very very slowly cooling…so AGE may be a plus for McFaulds…and interesting side note of these world MMS deposits maps, is that Canada has been unusually blessed with a higher proportion of these deposits , than other countries…

In conclusion, I have  believed for some time that the Potential for Large and rich deposits of Ni Cu PGEs at McFaulds  is/has been Great!..…As more geological data , interpretation and especially drilling comes forth, I believe again the words of Mr. Nemis  “THE RING OF FIRE ( The McFaulds area) WILL BE LARGER THAN VOISEY’S BAY”…the structure and Geology are there, the Ni Cu PGE’s are there, at least proven to exist thru 50 Kms belt of McFaulds, while others potentially to be found and extending Mfaulds further…
from SPQ’s VMS discoveries some  25 Kms away East from NOT’s discovery, to the BMK Ni MS discovery last year 20+ Kms away West of  NOT’s discovery….now all that is left is the very important “drilling” to actually outline and “prove” the orebodies…Good luck to all McFaulds Lake Players….

ALL of the above as usual ….In My Considered Opinion…pls do your won D.D….

JD

Rift at Mcfaulds ? …today’s thoughts…

This FP was a set up for NOT and area plays…I mean, out of the thousands of listed companies listed on TSX/TSXV, 1 day before the AGM FP decides to publish this false negative article..no other way to describe it…I think the writer should be sued !! even if it would only meant a judgment of $5,000 or so…the purpose is to expose the fraud some of these papers put out…FP had the fall back position of, oh well it was an insider… …Novak….the question that should be asked is why disclose insider info on NOT

Just before the AGM, why not some of the other thousands of companies…

An apology and retraction/reprinted correction will mean nothing, they accomplished their devious goal… I am almost certain this was no accident, just as mouthpiece PVE was no accident….maybe somebody is giving FP a BIG advertising contract…many many negative sentiments have been posted on all boards by bashers/traders, as a coordinated attack on NOT since the last news release, that culminated in the  FP attack…well IF 70 cents down is the best they can do, that speaks volumes for the interest in NOT and Mcfaulds area plays..

IMCO this will be yet another “ 1 or 2  day wonder”…As soon as NOT releases it’s updated news, hopefully positive, and updates on drilling results and upcoming drilling,

Hopefully at the AGM, NOT and all area plays will resume their Upward ascent…the world wants some confirmation from NOT that McFaulds is the real deal….

RIFT???

I have been noticing for sometime now that a rift is developing between NOT and BMK…It started when first received emails “advising” me not to post about BMK at AGO. NOT…then a couple of weeks later I noticed one of my posts there mentioning BMK was “edited”…I immediately issued a post stating that I would no longer post at AGO NOT.  Over the last 2 weeks I have spoken to a few of the area players and found out that BMK initially proposed that all area players join in and conduct an area wide AeroMAG very detailed survey to include HIGHS/Electors, etc…I found out that NOT refused to participate for some reason…BMK went ahead  about a month ago on it’s own 100%  land claims and their JV claims south of NOT…It turns out that a couple of weeks later, NOT,SPQ/KWG, FWR,PRB and FNC have now got together and are conducting similar surveys over their claim lands…

Another interesting hint was the BMK announcement of the 4 BIG Mining Royals , Lassonde, McEwen etc and Lassonde’s daughter appointed to BMK board… and taking a piece of BMK shares and not of NOT…I noticed today that NOT and most others aforementioned were down and under pressure most of the day some closing a penny up or so on very low volume…while BMK was UP most of the day, with heavy volume, with a late last minute dump to closes it down 2 cents…this is only about the second time BMK has gone totally in opposite direction to NOT…Those BIG 4 Royals may be a factor, as well as the fact that BMK is drilling in about a week, but I just felt there something else also at play…I can’t quite yet put my finger on it but I will soon enough…on the other hand this “rift” may just be coincidences?….

As long as NOT comes out tomorrow or the latest in 2 days with the drill results and plans etc…I don’t believe NOT shareholders, including myself, have nothing to really worry about…FP bashing or not…I think it’s going to be quite an exiting few days for the whole area of McFaulds….

IMCO

Mr. Novak resigning from UC, is very good news indeed...I think this is part of the reason SPQ was UP today to 11.5, and will see much much higher prices from here on...
This move frees up Mr. Novak to concentrate solely on SPQ and NOT...
As I posted before these 2 Novak, Nemis are twins...you always see them together, they alway work as a team...Don't forget that SPQ was the STAR of the area long before NOT became the STAR this year...

Just some of the ways that Mr. Noval may/can/should increase shareholder value, include...

JV with NOT and others...lots of talk about this...
Staking additional claims at McFaulds and optioning them to NOT or others...NOT is still staking and making deals..so why NOT SPQ...they have the $$$CASH now...

I say again Mr. Novak will devote all his time now to NOT and SPQ...

don't forgetSPQ insiders, including Novak, own at least 9.8% of SPQ shares "declared", we don't exactly know how many more....so they will be enriching themselves at the same time...It will be in their best interest to make SPQ a success... for all of us...

GO SPQ GO!!!

All of course as usual ...IMCO

JD

First SPQ does in fact have 3 Claims Blocks, as I mentioned in my post...,If you look closely at the Map of the link I provided, you will note that on McFaulds East, there is an extension of SPQ claims
leading upward from SPQ older claims to their new claims next to and to the right of BMK's Big Mac property...If you look at the older maps
those claims were NOT there...there was a space between BMK and SPQ claims...also notice that NOT has also staked recently in that area...

Second "diagnos" claims...yes I have spoken to Novak last month on this very issue...Prior to an amended agreement bewteen SPQ and KWG, yes they both had 50/50 % each at McFaulds...however KWG wanted to concentrate on diamonds, SPQ wanted to concentrate on Metals...
SO...this new amended agreement last year, gave/will give  SPQ 67% Int in all McFaulds joint claims and KWG 33% Int...SPQ was appointed "manager" of McFaulds. Wawa, and Kyle...while KWG was appointed "manager" of MacFayden wherein KWG holds/will hold 57% Int to SPQ's 33% Int...SO this agreement applies to all the claims held
jointly by SPQ and KWG...And  yes i am very HOT about these "diagnos" claims myself, as well as the optioned claims below...

Third...Now you will notice that the optioned claims from FWR are/will not be subject to this amended agreement, since this was a seperate transaction, and so SPQ 32.5%, KWG 32.5% and FWR 35% Int respectively...Glad to see you keeping up with the SPQ/Renforth, but
didn't want to mention the land since i had already included in with the optioned claims...but good point...

As far as Novak's resignation from UC...I have made some conclusions although haven't got a full grip of the situation, as I haven't spoken to Novak since he resigned...My take is that this is exellent
news for SPQ, since he will now devote much more time to SPQ...
I really believe he wants to leave his mark on the exploration world, and I'm hoping he will do it with SPQ.....You know HE was responsible for NOT's discovery, and the 10 VMS discoveries...

And YES your scenerio is very much plausible, although the same thing could be said about SPQ and NOT since Novak serves on both...
You know when I spoke to UC, before Voisen's appointment, I got the impression that they were working "full out" on their Mexican Gold property and sounded like they wanted to mine it as soon as possible..He claimed they could use the proceeds$$ to further other projects...from what I understood it was a rather small deposit,and the figures I heard to accomplish production were NOT small.. so who knows, may be they pay slave wages downthere..
You will take note that the Geologist who replaced Novak, was a Mexican Geologist Roy, apperantly with alot Of Mexican ore experience...so maybe Novak seing that he has his hands full and didn't want to ADD yet another project in Mexico, with all the travel and work etc...

again, just conjecture on my part, but there may be other reasons that we don't yet know...stay tuned on this one...

BUT this idea of a JV between all 6 of them NOT,SPQ,UC,KWG,Fwr,FNC, in my view will eventually happen...the question then is...
AT WHAT PRICE???...and so yes, I do feel in the interest of all shareholders, these companies will be allowed to do some drilling to try and define some "hits" to attempt to determine each respective company's value for the JV....

All of course as always...IMCO...

JD

Re: i spoke to Mr. Novak of SPQ this morning..

Posted by: johndefur on November 05, 2007 11:46AM

I Spoke to Mr. N. Novak this morning…..

Basically I wanted to clarify some of the issues raised as a result  my last post” The Spider’s Long Legs Spread Wide throughout McFaulds…..I must say I found Mr. Novak to be in a much more focused mood,  and he went out of his way to  point out to me that SPQ has some of the BEST “ground” at McFaulds…

The first issue was the Status/Ownership percentages of the Newly staked/acquired claims at Mcfaulds, as shown on the Nov. 16 New McFaulds claims Map…

The 11 New Claims just north of SPQ/UC and above NOT 2 claims, on the East side, below BMK’s Big Mac claims, are still to be determined, in terms of whether or not they will form part of the UC options claims….more about SPQ/UC below…

The New 18 claims jut West of said claims, and South West of BMK’s Big Mac, are in fact SPQ/KWG   JV claims which were staked to protect area around existing claims…These claims areas were of “special’ interest to Mr. Novak, since they have/had been staked following “diagnos” analysis, and were very sought after by a number of Companies including DeBeers…Apparently the “AEM signatures of this property were very interesting indeed…If I recall correctly, I read that the NOT discovery was accidentally made Drilling for Kimberlite …so these new properties look very exiting indeed…

As far as the % interest on these new claims, Mr. Novak clarified all that…

The New “diagnos”Claims, will be equally owned/divided between SPQ 50% and KWG 50%, since under recent discussions with KWG,   KWG has expressed a strong interest in McFaulds Area…

The FWR optioned Claims remain as I stated…SPQ 32.5% Int, KWG 32.5% Int, FWR 35% int…Mr. Novak seemed especially interested in these claims because of SPQ’s “findings” of Chromium and PGES, and the Geophysical anomalies/surveys underway…

Of course in addition SPQ  holds numerous interests in the Claims optioned to Renforth

Throughout McFaulds, as well as Diamond interest in Wawa Kyle, and McFayden…

The Issue of the 2 Very LARGE claims Blocks held by SPQ 67% and KWG 33%, which has tentatively optioned to UC, through a “letter of Intent” which could/would earn 55% on certain conditions, including spending of about $ 5 Million dollars…I was told that UC has in fact spent about $1 Million of those funds, ahead of the signing of the sai formal/legal Option Agreement…I was also told that they are awaiting formal/legal approval of the wording of said “options agreement”  from KWG. So as it stands today, The “Options Agreement” has not been Legally finalized, awaiting KWG’s approval…Mr. Novak again informed me that UC has NOT given formal notice to SPQ, the manager at McFaulds, that they intend to proceed with said ‘Option Agreement”, which would be reasonable since said Legal/formal agreement has not been finalized, and that UC has until March 08/2008 to give SPQ said Notice of intent to proceed with said “option agreement”… This is in one of the reasons Mr. Novak resigned from UC, ( my own view is also so that he could spend more time on NOT and SPQ) since whatever decision is taken by UC board on above noted “option agreement”. He did not wish to participate, so that decision would not have any “appearance” of influence/bias in any way…

Mr. Novak also went on the mention that he will be making a decision as whether to attend the upcoming Prospectors Developers Conference, but I got the feeling that he might….As you may imagine Mr. Novak was very busy, and so we ended our conversation….I got the feeling as I said Mr. Novak is very confident of SPQ’s prospects at McFaulds, and it seemed to me that preparations are well underway for the January/08 drilling on those “HOT” optioned claims with the “layered peridotite” 3 kms from NOT…

IMCO as always…

JD

 This is yet another one of those rare posts that should copied and pasted for future reference, closer reading/study…It is especially important because it contains, in addition to some Geology, it also includes factual and very important Geophysics studies/maps from portion of McFaulds Area conducted by Area Players on or about 2004, and 2005…Take note that these Geophysics maps were made public, long before the Spectacular Ni Cu PGEs discovery by NOT….I mention this, since it is rather “rare” , with good reason, that Explorers publicly release this kind of Geophysics data/information after a great discovery….As evidence, BIG players like CVRD have already moved into McFaulds, apparently notifying Chief Jacob by letter.. The BIG CVRD question is …did they option land from NOT, or did they stake their own claims west of NOT?..      I doubt whether many of the Area Players would want to release “confidential” and detailed Geophysics Surveys publicly…However, fortunately, we do have these few Area Geophysical Surveys that can tell us volumes about the potential for  NOT like MMS Cu Ni PGEs discoveries…These Geophysical Surveys only cover a small portion of McFaulds, approx a 5Kms radius from NOT’s Spectacular discovery and 5 Kms East, but they are extremely important because of their very close EM anomaly similarities and proximity to NOT’s  EM signature/anomaly., all within 5 Kms of NOTFirst the all important Geophysical data/maps portion as they directly relate to the following Area Players around these area maps , including in no particular order, NOT, SPQ, BMK/JV, FWR, FNC,KWG. These Geophysics maps and their anomalous signatures, of said area are the real thing. They are the actual”physical;” EM signatureswere part of the data used I believe, to uncover NOT’s Spectacular MMS NI CU PGEs discovery, and SPQ’s famous Chromium/PGE’s layered peridotite discovery about 3 kms NW on strike, and were one of the primary reasons BMK/JV immediately ‘rushed” to stake the open area just below those SPQ optioned FWR claims. As a BMK employee told me after pointing these EM maps,…”why do you think we rushed to stake those claims near/below NOT, as soon as we heard of NOT’s MMS discovery”….So in my view, these Geophysics maps are very important indeed, and may/likely in fact point the way to other new Spectacular MMS discoveries, in this 5 Kms area, very shortly, with BMK/JV drilling this week there, and  SPQ, KWG,FWR drilling there in January/08… To better satisfy yourselves as to the exact locations and  claims ownerships, as these maps do not specifically give detail names of each claim holder,  please download the latest claims map dated Nov. 26/08 from the link below, and zoom in to the area surrounding NOT’s Discovery…any Mafaulds map will do since these claims are somewhat original..McFaulds Area Claim Map…http://johnduff13.myphotoalbum.com/view_photo.php?set_albumName=album01&id=McFaulds_Area_Map_10_31_NOTTo better and precisely follow the points I will make below, it’s best to download the 3 Geophysics maps with links below, and zoom in to have a real good/closer look..Map of NOT HLEM….courtesy BMKhttp://johnduff13.myphotoalbum.com/view_photo.php?set_albumName=album01&id=BMK_Macdonald_NOT_ELHM_south_directionGeophysical AEM anomaly map borrowed from BMK of that portion of McFaulds being discussed in detail…courtesy BMK…http://johnduff13.myphotoalbum.com/view_photo.php?set_albumName=album01&id=BMK_Macdonald_Presentation_Oct0716_EMA_Discovery_AreaFWR TEM Map, of the area at McFaulds being discussed in detail…courtesy FWR..http://johnduff13.myphotoalbum.com/view_photo.php?set_albumName=album01&id=FWR_Mag_TEMFirst a word about EM  Airborne “Electro Magnetics” vs “ Magnetics”“”Geophysics includes in the field of mineral exploration, in particular the search for “Electro Conductive” metallic sulphides and oxides in resistive geology..It also includes the search for “magnetic” anomalies/signatures , such as Magnetite and Phyrrotite etc,that are magnetic which are quite separate and distinct from Electromags, which relies on “Electro Conductivity”” ““”MMS Nickel and Copper deposits are typically very conductive, and return a strong EM response (so much so that specialised processing  may be needed to detect them with time-domain EM systems) TEM. These deposits are generally associated with ultramafic intrusives, which also produce strong magnetic anomalies, useful for targeting prospective geology within regional magnetic surveys. The presence of pyrrhotite in the deposit may create a magnetic anomaly, although it can be lost in the strong magnetic anomalies of the associated intrusives.””The letter before the term EM, refers to the type of EM….H EM is a Helicopter EM.. FEM, is a Fixed wing EM… TEM is a Time domain EM…They are all EM’s with different instruments/applications, such as for depth, close to surface, differentiating etc etc.…these and New types of these Geophysics Surveys is a real growing business, and usually take up to 20% of the booths at Prospectors Conventions……to cut to the chase…..I will be concentrating /discussing the following claims and Area Players…NOT and it’s MMS discovery Claim….FNC and it’s 4 claims adjacent to NOT…SPQ/KWG and their 5 Claims(optioned from FWR) adjacent to FNC…SPQ/KWG 321/2 % Interest each, FWR 35% Interest…BMK’s 2 claims below SPQ/KWG and adjacent to FNC… 1 Claim of SPQ/KWG Just after  said 2 BMK claims…and 4 Claims above SPQ/KWG of FWR…I will first deal with NOT…many, including Kaiser have suggested that NOT’s MMS discovery extends some 2400 M S/W….in the first HEM map, you will notice that NOT’s EM anomaly does in FACT extend  South/SouthWest  by some 2400 M all within NOT claims….So, in conclusion, there is a great likelihood that NOT’s discovery deposit does in FACT extend further by about 2 Kms …perhaps not totally continuous, but rather in sections of that 2400 Kms strike length, since in part, the line used to outline this EM anomaly is not a solid line, but a broken line in dashes…The second Geophysics map, courtesy of BMK is very important indeed…For it not only shows the precise EM anomaly/signature of NOT’s MMS Ni Cu PGEs discovery, but it shows the intensity and strike direction, of a number of very similar  EM anomalies as follows: please remember there are no numbers or data  given on this map but a visual comparison would suffice…It is very clear that NOT’s anomaly extends North/West into SPQ/KWG/FWR Claims, there are at least 3 very similar anomalies , directly on strike NW from NOT’s  anomaly/discovery…these 3 anomalies have great likelihood of being MMS,this is where SPQ found the Chromite ansd PGE’s…One EM anomaly is divided between SPQ/FWR/KWG and BMK..this is an important one, since it also lies next to a Fault, and is marked HIGH EM…  A smaller anomaly is found in one of FNC’s claim a little bit South of NOT’s EM anomaly …this anomaly too has a great  likelihood of being MMS…The next anomalies is in the BMK/JV claim, marked in red in BMK map,almost on strike NW a little more south of NOT/FNC’s EM ..anomalies…These one too has a great likelihood of being MMS, especially since they are next to a Fault and are marked as HIGH EMs, along with another  anomaly right adjacent NW to it which is in SPQ/KWG claim….Leading from these anomalies almost on strike north/west, there are at least 4-5 such anomalies mostly leading in and  into SPQ/KWG/FWR claims…these most certainly have a great likelihood of being MMS, as you will see in the next map, a “fault” running right next to them, and are marked with a solid red line, indicating a HIGH EM anomaly.. As you can see, those are the only High  anomalies released in this partial map for that area .from BMK… they look superb…I asked a Geologist friend  what percent chances he would give these anomalies under the circumstances of NOT’s EM Anomaly MMS discovery…He gave me a 60% chance of them being MMS…my guess was a 65% chance…so there exists a very good likelihood these/some of these EM anomalies represent  MMS deposits, especially  when viewing the last Geophysics map from FWR…So to summarize, ..1 EM anomaly in NOT’s claim, the MMS Ni Cu PGE discovery…and what looks like a continuation of that EM anomaly in NOT’s claims SW…….1 EM anomaly in FNC claim…just S. of NOT….5 to 6 EM Anomalies in SPQ/FWR/KWG JV claims….3 EM anomaly in BMK/JV claim...and 1 EM anomaly in SPQ/KWG claim…this first map does not show the 4 FWR claims,although FWR map shows 1 EM HIGH red sold line Anomaly in FWR claims, just above a fault in the 2^nd claim N of SPQ/JV claims,,All these have tremendous potential for MMS.You will note that on the next  EM map from FWR, there is a little more detail and gives HIGHS and Medium and Lower EM anomalies…Remember that this EM anomaly was released prior to NOT’s MMS discovery, they were only drilling Medium to Lower EMs...Also none NOT ONE OF THE HIGH ANOMALIES on this Map were drilled , ( of course with the exception of the NOT anomaly/discovery) represented by very THICK/SOLID red line, that correspond exactly to the previous BMK HIGH EM Anomalies map , as some of the press releases from NOT had indicated…This is indeed very good news…Of course we can’t see the NOT or FNC High Anomalies on this map, BUT we can see SPQ/KWG/FWR, and FWR and the  BMK claim, and SPQ/KWG claim, and the 4 FWR claims..…You will note that on the BMK/JV first claim there is a Fault(black dotted line), and beside that Fault,still on BMK claim, there are 2 solid lines and 2 thick black points at the top of the claim, never been drilled …these are excellent MMS targets/potential…the second BMK claim EM anomaly does not show up  on this map, 9maybe it wasn’t surveyed, but one can see from the adjacent BMK claim , that the HIGH to Medium EM conductors do flow into BMK calim from SPQ/KWG claim…The SPQ/KWG claim borders in black) has tremendous potential for MMS since it has 2 solid red lines, indicating HIGH EMs, and 2 black thick markers…continuing on from there  and joining the “Fault”  in a NW direction, is a series of very solid red lines and thick black dots, in a much longer stretch all in SPQ/KWg/FWR claims..This area in my Opinion has the HIGHEST chance of being an MMS deposit, leading from about the middle of the JV claim on extreme left and moving NW past the top of that small square inside that claim, and past the Fault line, and are all HIGH EMs…there is a very similar but smaller one just below the above…Agin I believe that these last 2 EM anomalies mentioned have in my opinion, the HIGHEST possibilities of MMS mineralization…FWR has 1 EM High…None of these HIGH EMS have been drilled…BUT I’m almost certain they will be drilled on or about Jan/08….Remeber that there also exist a high possibility of hitting a pure PGEs deposit, and also remember the VAST Claims/Lands that NOT/JV,BMK/JV and SPQ/JV have at McFaulds,which have never been drilled for MMS HIGH EM anomalies…Just an interesting side note about that little square piece of land inside SPQ/FWR/KWG..As I was informed, it turns out that it was owned by an individual who refused to sell it for many years…eventually a deal was made with Renforth to buy said property, and subsequent to that SPQ/KWG made a deal with Renforth optioning all their diamond plays at McFaulds, and so acquired interests in that small square…I believe there exists a great likelihood  that some of these EM High Anomalies noted above will find MMS NOT like deposits at McFaulds…this would mean superb NEWS for NOT as well as well as said Area Players, since it’s the total tonnage at McFaulds that will make NOT and all McFaulds deposits “economical”.For the record, and in full disclosure,  I own most all of the above noted Area players, and have been accumulating more over the last couple of weeks, especially SPQ, BMK and  FWR  for reasons above noted, and may be accumulating a bit more if prices weaken further…As usual, this is all In My Considered Opinion…please do your own Due Diligence….JD       

SPQ reserves/estimate may be as high as 25 to 50 MILLION tons…

Posted by: johndefur on November 20, 2007 09:38PM