Re: ISM News:Micon International Commissioned for NI 43-101 Report
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posted on
Jun 03, 2008 07:59AM
The company is exploring for nickel deposits on its Langmuir property near Timmins, Ontario; for nickel-gold-copper on its Cleaver and Douglas properties; and for molybdenum and rare earth elements at recently acquired Desrosiers property.
I do like to re-read the Darcel quotes occasionally.
His summary is conservative and leads to a reasonable conclusion. recall this was written last Nov 2007.
"This valuation does not attempt to compare the Company with other exploration projects nearby including Golden Chalice,Liberty Mines, First Nickel, and Starfire Minerals. The area appears to have large structures that extend across claims. The entire area may become a target for development by a multi-national mining company, which suggests that a higher in-situ Ni valuation is warranted. If the Company doubles this reports estimate of Ni at Langmuir through detailed drilling, then it is likely to become a target.
The methodology applied to estimating Ni at Langmuir 1 did not attempt to “fill-in” gaps in core sample data, where the summarized report excluded a length between reported samples. It is the opinion of the writer that the effect would be that Ni estimated at Langmuir 1 is low.
From the Jensen report (p.48): “Detailed mapping and interpretation indicates that both the Langmuir No.1 and No.2 deposits occur at the same stratigraphic position on opposite limbs of an anticline / syncline pair and implies that the favourable stratigraphy may be repeated at several locations on the property.” In the author’s opinion, this should be interpreted as meaning that the above Ni poundage estimates are a starting point, and that significantly more Ni is highly likely to be found at the Company’s Langmuir area properties after they drill into the 40-60 anomalies they are targeting over the next year.
Conclusion:
At its current price of $5.00, and given that the value of Ni contained in material on the Langmuir properties has been estimated to have a value around $16.50, then ISM appears to be significantly undervalued (if an in-situ Ni price of $3/lb. is applied to the Company’s Langmuir potential contained Ni). In the author’s opinion, this estimate is low but reasonable, based on available information, and very likely to be revised upwards as the Company applies its cash to define the extent of Ni at Langmuir. The Company has other valuable exploration projects nearby and in Utah which are otherwise completely discounted at this time."
Now as per the Micon News:
Inspiration announced today that it has commissioned a firm to
1) prepare a mineral resource estimate
2) prepare a scoping study
3) prepare a technical report.
TORONTO, ONTARIO--(Marketwire - May 16, 2008) - Inspiration Mining Corp. (the "Corporation") (TSX:ISM)(FRANKFURT:OI8) is pleased to announce it has commissioned Micon International of Toronto, Ontario, Canada to prepare a mineral resource estimate, a preliminary economic assessment (commonly referred to as a scoping study) and technical report on its Langmuir property. It is anticipated that the project will be undertaken in the following phases:
Phase I - Mineral resource estimates for Langmuir No. 1 in preparation of a bulk sample and mineral resource estimates for Langmuir No. 2. The mineral resource estimate will include Trend Analysis, Cut-Off Grade Estimates, Compositing, Bulk Density Review, Block Model Construction and Validation, and Open Pit Optimization for Langmuir No. 2.
Phase II - Preliminary economic assessments examining the potential economic viability of each zone of mineralization. This assessment will contemplate excavation of the mineralization at the Langmuir No.1 deposit by means of underground mining methods, and the excavation of the mineralization at the Langmuir No. 2 deposit by means of open pit mining methods. The results of the mineral resource estimates and preliminary economic assessment will be compiled in compliance with National Instrument 43-101.
Since 1959, the presence of nickel mineralization at the Langmuir property has been known with a small amount of production from the Langmuir No. 1 mine during the 1970-1978 period and again briefly during 1990-1991 using underground mining methods. Since 2005, Inspiration Mining has conducted an exploration and in-fill drilling program designed to identify the extension of the mineralization from the past producing zones at the Langmuir No. 1 deposit. At Langmuir No. 2, the Company has focused on the wide zones of mineralization extending from the past producing mine that may be exploited by means of open pit mining methods.
The mineralization at the Langmuir property is believed to be an example of a komatiite-hosted nickel deposit, similar to that found at the Raglan mine in northern Quebec, and in the Kambalda region of Western Australia. In these types of deposits, nickel mineralization can occur as small, but high grade, pods of massive sulphides that are situated in the keels of volcanic flows of ultramafic composition, and as disseminated and net-textured deposits that have lower grades, but are of larger sizes. Several occurrences of nickel mineralization have been outlined by Inspiration Mining, including the Langmuir No. 1 and the Langmuir No. 2 North and South Zones.
"We have taken a significant step towards the development of our project with today's announcement," said Randy Miller, President and CEO of Inspiration Mining. "We will continue to expand the scope of the program based off the results we have achieved and look forward to working with Micon International on this phase of the project."
Since 1988, Micon International Limited has provided consulting services to the international mining industry with particular focus upon mineral resource estimations, metallurgical services, mine design and production scheduling, preparation of pre-feasibility and feasibility studies, independent reviews of mining and mineral properties, project monitoring, independent engineer roles, financial analysis and litigation support. Micon has extensive experience with sulphide nickel deposits working on projects from Sudbury, Ontario to the Norilsk mine site in Russia.
Micon's clients include mining and mineral exploration companies, financial institutions and government agencies from around the world. A particular expertise has been developed in the economic evaluation of mining properties, including studies in support of debt and equity financing. Micon's professional staff has the experience, education and professional credentials to act as Qualified Persons and/or Competent Persons, as required by world-wide regulatory agencies.