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Message: Re: Kodiak Uranium exploration: but they must keep their good Nickel claims
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Mar 06, 2008 08:27PM
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Mar 07, 2008 12:20AM
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tau
Mar 07, 2008 01:28AM
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Mar 07, 2008 01:44AM
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tau
Mar 07, 2008 03:10AM
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Mar 07, 2008 05:46AM

Sparlikgwatr, yes agree with you that right now nickel is pretty hot, and don't worry Sudbury will be around for a long time even after the nickel is gone. I lived there for 3 years and yes the people in Sudbury are great, plus I was told that it is the sunshine capital of Onatirio when I was offered a job there, and ofcourse Ramsey Lake usually is ice free by the end of April.

In terms of future nickel I am not so sure. Inco alone is involved in a huge project in New Caledonia, plus 3 projects in Brasil in addition to Voisey Bay. Falco is also increasing rapidly. On top of that the Chinese are using old iron blast furances to produce low grade iron-chrome-nickel aloy for stainless steeel, and last year they produced almost 10% of world nickel production that way. Any slowdown in growth with the rapidly increasing nickel capacity will sink the prices noticably.

For Kodiak's nickel claims first of all so far they do not show anything economic, and if they do it will take 15 years or so to bring to production, with the exception of the claim near Timmins. Production at remove locations increase operating costs noticably, at Ragaland it is 25% above 'normal' because of that.

I wish I am wrong and the claims can work out, but if it takes away required resources from Hercules and its development, then I think they should consider if they want to maintain their broad approach. Lets face it, even Inco just primarly focuses on Nickel, copper and cobalt come for the ride, but they never have had any interest in developing copper mines or anything else.

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