Eagle One and Ni Prices

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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semismart

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Eagle One and Ni Prices

posted on Jun 01, 2009 02:07PM

I have been going through the Eagle one Feasiblity report today on the website. It was all based upon Ni prices at $11.00 Ni.. Eagle One is worth $464MM at a 10% discount rate over 4 years with Noront paying for 1/2 the Road. The breakeven was estimated at $4.50 U.S. Ni.

I am not sure how linear the relationship is between the price of Ni and the value of the deposit. I will have to do more analysis on that later. But with Ni now at $6.55 to $6.60 per lbs - I think the value of Eagle 1 should be around $100MM-$150MM.

Every $1 Ni increases Eagle 1 should be worth an additional $50-70MM. That is big considering our Market Cap right now is only $113MM. I think if we see another $1 raise in the price of Ni there will be a correlating run up in our share price...

I think it is very safe to say that with the Chromite Deposits this stock is very undervalued. Not sure what is being valued at $0 here but it is definately something?