Whaler,

I have been of the opinion that it was not advisable to have Micon finish the report until nickel prices and the investment climate improved. I think both of those are improved, but probalby not yet ideal.

Looking back at the 5 year chart for nickel, 7 to 8 looks like a reasonable expectation. The laterite supply would kick in above that level. It will probably take several years for supply to push the price above the 7 to 8 range.

The recent surge that ISM had from .50 to the level we are now at indicates to me that there has been some improvement in the investment climate as it relates to nickel and ISM.

I have the impression that the horizontal extent of L1 and L2N have been determined, and that some addititional coring was done after the initial review by Micon.

The re-testing of the 10,000 samples for nickel and the other minerals was also done several months after Micon was on the scene.

Both of the above are examples of the expansion of the program based on results and the work of Micon.

It seems to me that two obvious ways to expand the program now are to core deeper at L1 , or to add additional areas to the charge to Micon based on exploratory cores. We haven't seen any results of exploratory cores, so there is not much for us to go on there.

I recall that in the past one of the reasons given for dewatering L1 was to be able to take a drill down and core deeper.

So, do you think the program will be expanded and the Micon report held up for the results of deeper drilling at L1 after dewatering? If so, we have another year or so to wait for the report as it relates to L1.

Didn't the NR that gives the charge to Micon also mention a bulk sample? Another reason to wait for dewatering before finishing the report as it relates to L1.

The deeper coring at L1 would increase value there, and the bulk sample would improve the reliability of the data.

In my opinion, L2N is a different type of deposit. Information gained from the work at L1 would not necessarily relate to L2N, and I would hope that management would have Micon finish the L2N report now.

My apologies for the length and rambling nature of this post, but I got started and couldn't find a stopping place.

Wildcatter