Re: the whole picture

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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AlsoFromSudbury

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Re: the whole picture

in response to

the whole picture

khareema

posted on Jul 06, 2008 11:44AM

kharema,

Agree with your post except item 6. where you say that we do not have the resource to justify the infrastructure. Believe you have to get your calculator out and do the math.

To follow RN's vision we need more drilling to move the indicated reserves into the proven category, an all weather air strip, an enlarged camp and a winter road to the DeBeers Victor Mine. Initial production from the indicated massive ore would yield ~$380million. During this mining we need more drilling to upgrade the inferred to proven which will provide another ~$370million. The revenue from this initial mining (~$750million) pays for the initial infrastructure (~$20million) and leaves more than ~$700million that can be used to begin the work involved with the major infrastructure.

Major infrastructure costs will be the concentrator and railway that will be needed when your point #5 happens (when we find a dozen more Eagle #1's).