There was a brief but passionate discussion of insitu values this morning. People have been using 10% for "back of the envelope" calculations. The 43-101 for E1 stated that the mining, processing and G&A cost was $117/t. The shipping cost is $130/t. The capitol cost is $173 million. Now it seems we have the component costs, but we don't know if this is tonnes of concentrate or tonnes of ore. I would asume tonnes of ore. If we spread the capitol cost over the 1,834,000t indicated, than it amounts to $94/t. The total cost now becomes $340/t. I don't know what the average value of the ore is per tonne but if the insitu value assumption was 10%, than the value of the ore would be $3410 per tonne which I know is too high Therefore, based on these calculations and assumptions, the insitu value must be higher. At 30%, the value becomes $1136. Does anyone remember the estimates of ore value done months ago? Maybe someone can correct me if I am wrong as well.

With the chrome calculations, it is way too early to speculate. Is the sheet of chromite at the surface? How deep does the deposit go? The mining costs will depend on how much waste will have to be removed in the open pit phase. There may be synergies and cost savings available if the nickel is developed as well. Something to chew on.

Mike