Re: Low volume

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Rockaur

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Re: Low volume

in response to

Low volume

Rosedale

posted on Nov 30, 2007 08:07AM

Rosedale

you wrote a nice valuation summary (see below) but I think it needs a little tweaking. I think Goldfinger said it well in that the valuation you attribute to DE below should really be attributed only to DE-1. So...if NOT finds DE-II ....DE-III ....

Noront's other properties $1.00 (too low IMO)

DE-1 = $3.50

DE-xx = bluesky

Rockaur

At the moment we know the orebody descends to 230m. If we take it that at 300m depth we would have 7 Mt, then with what we know at the moment we probably have 75% of this (230/300). This equates to about 5.25Mt at $800 a tonne.

In MJ share price terms this would value DE at $3.50. We'll allow $1 for the rest of the plays giving us $4.50. With a bit of fluff and a cherry on top, we appear perfectly priced in the market place. I use MJ's valuation model as he is the most caustic of the critics, I agree that due to the nature of the deposit this is the lowest valuation model, and IMO we are worth more today.

So there we have it - I think the market is waiting for the real news. The real news is the assays for holes 16 and 18, and the visuals and location of holes 20 thru 26.

Whilst I don't agree this is a reason for selling a la MJ, I do agree with his assertion that we need the real news.

I believe the body language from the co is positive, I don't see the dog and pony as negative, or over selling, they are just maximising the value so we don't get mugged.