flyby and deputy,

Yes, that would be a good place to start the discussion. So, it's something like 1/3 of a dollar according to the 2 valuations which were done a few years ago. Since then, there have been significant changes, notably

- additional value of the RR claims and work in support of the RR development, and

- potential sizable BH deposit. CLF may not need to develop BH right away, but just hoarding it for the sake of creating a chromite monopoly in the RoF would be a good business strategy (sounds greedy, but this would prevent competition from others). Get all the chromite deposits in the region if possible. CLF may decide to join force with Baosteel to corral NOT chromite as well, if not the entire NOT itself...Baosteel would help out with some loose change in its deep pocket. BH has the tonnage and better grade than BT (similarly, BD grade is better than BT). My hunch is that CLF cannot do all this alone (its market cap is only $3.3B, so it would be very tight for CLF to launch a project that would cost about the same amount).

I am suggesting that CLF would (jointly with Baosteel) develop BD first, leaving BT and BH in reserve for future development. BD mine would not need an on-site concentrator for producing DSO, a saving of $800M.

A reasonable price for KWG share could be say $1.00 (3x the original valuation of KWG). With something like 17% of KWG which CLF already owns, the additional cost for a TO of KWG = 0.83 x $700M = $580M. It's simple math: $580M is less than $800M (cost of concentrator).

If there is a bidding war CLF still have some room to up the anti...say spending all the found money, $800M, for 83%, or $963M for 700M shares of KWG, or $1.37/share. The math is getting complicated here...If the math is correct, then I wouldcash in my chips and move to the Cayman Islands. At least 4months/yr to escape the Winter in Canada. Dare to dream.

goldhunter