388 mt is to NPV $1.637billion as 1809mt is to NPV $7.632billion/60mil FNC OS = $22.133 per share.

These numbers are so profitable, I feel something must be off. But double checking seems reasonable.Am I exaggerating here or playing it conservative?

Having two 603 million tons iron is confusing. However, as stated in the NR, the historical Mineral Resources from Fire Lake North and Bellachasse were not included in the total historical resource. As it stands right now there are 603 million tons of 43-101 mineral resources of Iron and 603 historical mineral resources combining to a current total of 1206 million tons or 1.206 billion tons.

Pretend you are a major attempting to estimate if CHM will profit from daily mining costs.Allow me to go conservative here. Let’s assume there are at least double the historical mineral resources once they drill in January. One can easily assume they’ll have 1.8billion tons of iron. 1.8 billion is a conservative estimate or 1/3 more than Champion’s current iron ore resources.

Notes: Numbers have been rounded following NI 43-101 standards; PEA – Preliminary Economic Assessment Study; DD – Diamond Drillin

“Champion recently issued a NI 43-101 Mineral Resource Estimate for the Fire Lake North Claim Block (refer to the Champion news release dated August 18, 2010). At a 15% Total Iron cut-off grade, there are 388 million tonnes grading 29% Total Iron in Inferred Mineral Resources. BBA Inc. (of Montreal) is completing a NI 43-101 Technical Report with results of a Preliminary Assessment (‘’PA’’) Study on Fire Lake North that include engineered or designed pits on the East and West Limb areas that include 251 million tonnes grading 30.5% Total Iron. The PA study shows a Net Present Value (NPV) of US$ 1.637 billion at a cash flow discount rate of 5% based on an Iron concentrate production rate of 7 million tonnes per year at a grade of 65% Iron. The internal rate of return (“IRR”) for the project is 24.8% (refer to the Champion news release dated November 3, 2010)”

Also note

“The completion of drilling at Fire Lake North and Bellechase in Q1-2011 also has the potential to add significant additional resources to the current NI 43-101 compliant mineral resources of 603 MT of 29% Total Iron.”

Let’s work the numbers with ratios so we might understand what the majors are crunching in their board meetings when CHM in on the agenda.

First include Bellachasse with Firelake North.

388 mt is to NPV $1.637billion then 603mt is to NPV $2.544billion

Now to blow your mind combining the historical estimates with Bellachase and Firelake North

388 mt is to NPV $1.637billion as 1206mt is to NPV $5.088billion

Now combine conservative historical estimates with Bellachase and Firelake North

388 mt is to NPV $1.637billion as 1809mt is to NPV $7.632billion

Apply to Fandcamp’s possible near future outstanding shares.

$7.632billion x FNC’s 17.4% interest = $1.328billion/60million FNC OS = $22.133 per share.

This is all before NSR, before FNC’s 1.5 mil shares, and before any of Lac Lamalee is explored, which is thought to have more than Fire Lake North.

Is .50c per FNC share a bargain? Are my numbers wrong. Am I exaggerating here or playing it conservative. You tell me? I understand NPV is misleading, however it preliminary before detailed studies begin.

Certainly one can understand why CHM(if ripple info is true) tried to deal with FNC to lock up Lac Lamalee.One can also understand (if ripple info is true) why Russians are making a deal with CHM. One could also understand why any major would want CHM to have FNC’s 17.5% in hand. 17.5% quickly escalates from a Major’s viewpoint.The numbers show it beneficial to not treat FNC the same way they might treat CHM. Therefore, a major might not want to show their hand about the deal they are negotiating with CHM.First, they might want CHM to acquire FNC’s NSR, 17.5%, and Lac Lamaleebefore revealing the deal with CHM.

We juniors are so used to crawling on our knees for 2 hundred million deals.It may be difficult for jr. venture investors such as myself to conceive of the real numbers the Fermont property instigates by the competing majors producing in that area. I would love a formula that they use in the Fermont for current production that breaks down daily numbers for extracting iron.

http://www.championminerals.com/events/index.php?xnewsaction=fullnews&newsarch=112010&newsid=1

I understand that Smith wants to let the ore promote the SP, and not to falsely pander to the market.We have ore.FNC = .50c a share?

-StockGreed