Cappy

Perhaps I did not make myself clear enough. By...

" FNC real estate will most likely be acquired by NOT for the proximity reasons…to get some elbow room and to consolidate potential deposits on FNC side. "I meant exacly what you had in mind.

FNC land is very valuable and wanted by both NOT and CLF for the following reasons:

- For NOT: Get more real real estate for its Eagle Nest (just like it traded BC for PRB land around Eagle 1), more elbow room for bulldozers and large trucks to move around freely. There was some indication that FNC has struck something at depth near the boundary. So, grabbing the real eastate and consolidate the deposits on both sides would get around the buffer zone requirement (60m?) on both sides. It would be simpler not having to deal with another company (FNC or CLF). And, consolidation of the land would gain the potential resources under the buffer zone (there was suggestion that both deposits are connected down below). A gain of 120 m width of the deposits could add significantly to the resources.

- For CLF: CLF does not need more chromite, unless it wanted to monopolize the situation (just buy out the potential competitor and "kill" the project). However, transporation access is a big thing hence FNC land around there is very valuable for CLF.

I don't think Dr. Smith would give away the real estate for a song. Yes, he has a pretty good idea of what is under there from his drilling (just enough drilling to know himself for negotiating with NOT with respect to the deposits on FNC side) and the value of the transportation corridor for CLF (and NOT as well).

Think of this real estate as the aluminum hood (or a rmovable hardtop) of a Mazda Miata. It would fetch a fortune if sold as part of a chop-up car. FNC still has Magpie, and the whole host of other Fe/Ti stuff, including the 17.5% of CHM to play with.

In sum, I was not suggesting that Dr. Smith sell the RoF property cheap. It's the opposite.

BTW, Baosteel has an interest in Fe as well, and anything that has something to do with stainless steel (Ni, Ti), so it would not be a surprise to see Baosteel making a move on the entire FNC which is dirt cheap with a market cap of $26M, chump change for deep pocket. Dr. Smith, watch your back! One gulp and FNC's gone.

goldhunter