I started out with four questions I wanted to ask Neil. These were answered plus a lot more.

My conversation with Neil was very amicable sharing even a laugh with regards to the "reverse split" confrontation at the 2008 AGM. He also asked me to mention something with regards to the latest request for flowthrough share issue, which I will do at the end of this post. It may interest aggressive, long term investors, interested in the Spider Resources strategy.

Here are the questions I asked:

1) What's Spider Resources strategy for 2009?

2) Why should an investor buy SPQ now?

3) Will there be any drilling in 2009?

4) Has a firm been chosen to do the International 4101?

At this time, Spider Resources focus for 2009 is chromite. Neil believes that strategically North America needs a primary chrome producer. Remember, there are no chromite/chrome mines in North America.

This belief has been echoed elsewhere possibly - if I remember correctly - at the last Noront Resources AGM. Neil's focus is on proving up the size of this resource on the Freewest Option, plus he wants to have a very clear understanding of the quality of upcoming chrome assay results. His 2008 drill strategy plus 2009 magnetic and gravimetric testing will provide documentation for the review of large global mining giants potentially interested in buying the chromite resource on the Freewest Option.

In particular, if you believe that the USA will need ferrochrome (made from chromite) for domestic and military production, then you might be interested in Spider Resources as a long term investment.

My question on the future 43-101 document elicited a great deal of information with regards to the 2009 strategy. Three international firms interested in doing the 43-101 made a short list. One firm in particular (I didn't ask about names) has provided information that leads Neil to think they will be given the contract to complete the 43-101.

This company has both the technical and the marketing personnel knowledgeable in all aspects of the mining of and the marketing of chrome. They will undertake an extensive review of the drill cores provided by Neil, and make a decision as to whether they meet the technical needs of the metallurgy tests to be used in the writing of the 43-101.

The base cost of the 43-101 will be $70K (coming from the new flow-through money). If larger core samples are needed (i.e., 500 lbs of "undisturbed" core), another $100K will be used to drill one or two more holes. More of the flow-through money will be used specifically for gravimetric testing. This type of gravity testing will provide a clearer delineation of chromite location versus magnetic testing. So the new gravimetric testing, and its results, will also be used in the 43-101. Actually prior to this testing a "grid" must be defined for the location of this testing.

(Please note that Neil mentioned a "resource definition" as a possibility in 2009, but this will depend on the results of the 43-101 - and I guess the general world economy and SPQ share price. The cost of a resource definition is very expensive.)

One of the other interesting things mentioned by Neil was platinum and palladium. These precious metals are being found between the "lens" of the chromium beds. He said that the international firm which will get the contract to do the 43-101 also has a detailed knowledge of these two metals.

With regards to the assay results from 2008 drilling, which will provide data for the 43-101, Neil expects these results to be in his hands prior to 2009. He didn't mention any specifics about a pending news release, but he intimated that the investor will be getting some news soon.

In a side comment about Noront, he said that Spider Resources knows more about chrome than Noront. It is my conjecture that NOT and FWR may have said to Neil, "you focus on chrome. It's going to benefit us all on the ROF". Noront would then possibly focus on nickel and copper.

Finally, with regards to Spider Resources recent flow-through share issue: the first tranche of shares and warrants has been filled. There are more shares in a second tranche available to the aggressive investor at 3 ½ cents, plus warrants. I believe that IBK Capital together with a philanthropic organization are involved in placing these shares and warrants.

I will not pretend to understand the business of flow-through shares, in fact I would screw it up trying to explain it, but Neil asked me to mention it to my investor friends. I believe that purchasing flow-through shares provides the Canadian investor with significant tax breaks.

IMHO I believe the Spider Resources chromite story continues to be a good story for the long term, aggressive investor. Moreover, I believe Neil was being forthright and honest in sharing his knowledge today. The opportunity for the investor to get 3 ½ cent shares and warrants is an excellent opportunity. I should also note – as an aside – that it is “tax loss” selling season in Canada, so there will continue to be downside pressure. But 3 ½ cents is ridiculously low share price in my estimation.

If you wish to get in on this opportunity, phone Neil's secretary (Kathy) at 416-815-8666. Neil is out of town for a couple of days, but he will get back to you right away with all of the details. The closing of the second tranche will occur on either the 17th or 18th of December.

Remember, this information is from my conversation with Neil today, and should not be considered investment advice. My opinions are strictly my own.

Snug