Buba Bob

I read your post on SH. Did you read Table 24 on page 86 of the Ni43-101? It shows the Economics of each Cut. The Left column is the Cut Name and Level, The Central partition refers to the economics, and finally the third part is reference the amount of Mineral Reserve and the grade. The Stope Net Revenue is Pre tax cash flow I believe but the report also states that there is no expectation of us having to pay tax because of our writedown last year.

If you xrefer to page 97 the LOM Production Schedule - you will see when each cut is planned for.

In your calculations, you have used the Indicated and Inferred resources from the Massive zone but have totally written off the 665,308 Tonnes of 0.72 % Ni from the disseminated zone.

The Production Rate is as detailed on p 86 17.4.9

If you reread Table 24 - 204,697Tonnes of Ni is contained in the Pit. Cross refer to page 66 Table 19. These resources were all screened as per $7 ni. Read the last paragraph - all resources had to comply with these cut - off requirements. If they were not compliant they were rejected from the resource. Again - read pages 79 - 80 Mineral Reserve Estimate - Methodology.

"Economics were applied to each stope's mineable material based on the NSR formula (Ni price and exchange rate), and mine operating costs including mining, milling, site administration and surface haulage to Redstone mill. Any stope that had a negative margin was deemed uneconomic and excluded from reserves: Page 81 reflects Net Smelter Return.

For these reasons I think some of your assumptions are wrong. Sincerely Wanderer.