I keep this in my mind firmly: Smith traversed Fermont land since his youth. He was trying to get financing for it when Pat offered cash for 50% and Smith stakes the land of Smith’s own choosing. Same with Magpie. He is very much responsible for these discoveries. He will do everything in his power to fight for Fancamp.

But do either a hostile group or Smith have a grasp on the real sellout point of FNC investors? I’ve said repeatedly that taking out FNC is cheapest strategy to make a successful offer for CHM or get a good stake in its future outtakes.

I don’t think any of us know Mineralfield’s nor most large shareholder’s sell point. As much as we may try, MF doesn’t reveal anything. We are all speculating. We hope Smith and Granger have a grasp on the large investor’s intent. I doubt it. But that doesn’t make us totally unknowledgeable.

I’m going to read into this a little: The offer to Rago’s for .50c reflects a lack of understanding of the history of Fancamp’s investors. We’ve been around the block, especially with FNC. Some call this loyalty. I call it greed. We expect reward for our torture.I’m sure Rago meant to say, negotiations will begin at $1.50. More like $3.00.There are a large percentage of investors who simply just don’t see much point in any profit for less than $5. Some have seen $3.00 before. Many have been here way to long to sell out cheaply. A .50c offer takes the assumption that investors like Rago see .20c as an inescapable standard to live with that will never change much. Therefore a double and a half must be tempting to him. But that is an institutional blinded by objective.

This is not a mid-cap company. This is a microcap, with a Buoy effect. Once pushed down, it pops way back up. They have researched the value, and hope we are worn out from the low SP. We are not fools. It is no coincidence that they approach Rago before Champion makes its NPV.

After talking to Smith at the end of last week, this is what he said. And the following should upset anyone trying to steal FNC from us.

CHAMPION

Smith repeats over and over, their holdings are enormous. We can expect an NPV north of $3 billion in mid November. Smith could see CHM putting out 25 million tons of concentrate per year...which would yield 4.37 MT for Fancamp's 17.5%. ( 4.37 million tons @ $150T equals a cool $600,000,000 per year for FNC (or $6 per share) ...plus 1.5% NSR. Again, that’s $6 per share yearly. We have the three ex-Consolidated Thompson guys to take us there, as they did before the Cliffs buyout for 5 billion.

MAGPIE

Our 43-101 will be out by mid December. Smith’s team currently has 55,000 lb of ore to analyze. Smith said it is looking like it may be sufficient quality to be "direct shipping ore". The goal is to have an IPO by year's end. When I asked about the assays he’s seen, he said he had to stop himself from saying things that will get him into “deep water.” I think he’s pulling excellent ore, greater than originally anticipated. Perhaps that’s why Major’s wait for infilling before making an offer. News will be out end of this week or the following.He’s waiting for a final bit to complete an assay. I always ask about direct ownership. He knows he’s got to make the large shareholders happy. Plus he and Deb own shares as well.

Lac Lamalee

Drilling will end this month. News is out as soon as assays come in. He expects 500M to 1B tons ore. That is more than Lac Lamalee when they declared 1.5bil tons NPV.

He said the copper find at Stoke is impressive. The down-hole geophysics are going on and a drill standing by for results.

CONCLUSION

.50c? $1.50??!!!!! How about $5.00, including Magpie.

.22c is ignorable. This stock is going to .75 once CHM gives the NPV or if Magpie gives great assays.Once all stocks get active in November, I hope 1.00 will be the new three month average a hostile offer must contend with. All the same, it would be wise to get Magpie’s IPO ASAP with a large percentage to direct ownership before an offer.

-sg