With today's FWR news release, (which I might add is great news - not just yet appreciated to the extent that it will be by FWR shareholders, our shareholders and others sitting on the sidelines) there has been some discussion pertaining to Chromite tonnage.

One thing that is now a certainty - we now know there is more Chromite ore in the ROF today than what we knew previously. We have all heard the rumors that RN has stated that the Chromite ore in the ROF might be worth north of $15Bn. (But then again, we also heard AT12 was better than hole 5 - enough said)

The fact of the matter is, nobody at this point knows what lies beneath the ground up in JBL (yet) . We can all speculate that BB1 is connected to BB2 which are in turn connected to the Thor zone on FWR's property some 12 kms. away from AT2 (BB1 & E2)

Maybe the question that needs to be asked is what is the critical mass (tonnage) that is required to move from exploration to production or sale.

Most will recall that Voisey's Bay sold for $4.3Bn which at the time represented 40% on the Gross Metal Value (GMV). Therefore, the proven reserves at the time of sale were equal to $10.75Bn. I understand that this is not an apple to apple comparison as we are comparing Cr to Ni and there are many other variables as well. I am also discounting from this equation E1, Windfall and any other properties currently in the NOT stable.

So, back in '93, Inco was prepared and did pay $4.3Bn for a resource proven to be worth $10.75Bn. (Again, for purposes of this submission, I am assuming that VB and JBL both have equal challenges from an infrastructure perspective)

Therefore, assuming we require a GMV of $10.75Bn, how much Chromite ore do we require?

As you all know from the great DD provided on this forum, there are a couple methodologies for valuing and selling the Chromite. If the grade is good enough (40%Cr2O3) it can be sold for $600.00 per tonne. Also, if the grade is good enough (BB1's zone runs above 40%Cr2O3) and the Chrome/Iron ratio is favorable, (same zone runs over 2.0) it can be directly fed to smelters resulting in a contained metal value of $1890.00 per tonne. This figure is gross and does not include transport and smelting costs. If we use the initial E1 43-101 report that depicted a 25% (NSR) shipping and processing cost for the ore (albeit E1 vs BB's) our net value per tonne of Ferrochrome is $1,417.50.

Okay, $10.75 divided by $1,417.00 = 75 Mt.

75 Million tonnes / 4.5 specific gravity = 16.6 million cubic mtrs.

Therefore, assuming critical mass is $10.75Bn, we will need a Chromite deposit(s) totalling roughly 250 mtrs x 250 mtrs x 250 mtrs or any other way you want to slice it.

Did somebody say it was 12,000 mtrs from BB1 to Thor?

I have been guilty of historically saying to say the course, keep your eye on the prize. Oh, there I go again.

Cheers,

Milsy1