Spider Resources: let's review where we are and where we're going.

First point: I'm not the SPQ communications director; I'm just a retail investor who's not here for sentimental reasons; I'm here just like Old Joe who in a post on the Noront board stated that he's awaiting (somewhat impatiently) his time in the sun i.e., a large share price appreciation which will make him wealthy. I am of the same mind.

Second point: IMHO based on all available present day corporate data, Spider Resources is not going to pop tomorrow, next week, next month, next quarter. I have gleaned nothing in my personal discussions with Neil Novak dealing with corporate actions e.g., upcoming NRs, assays, etc. that indicates the potential for a large jump in share price.

Third point: It is entirely possible that events external to Spider Resources e.g., another fabulous nickel strike at the ROF, may raise the SPQ share price. But IMHO it is unlikely that it will be an external drilling event by one of Spider's JV partners: KWG isn't drilling, UC Resources isn't drilling. And although FWR is drilling, they are drilling on their 100% owned lands.

Fourth point: At the last AGM it was apparent that Spider Resources needed money for a drilling program. It had just finished spending 700K on the compilation of a 43-101 by MICON. It had about $2 million in the bank for operating expenses. However, it has/had JV obligations on the Freewest Option lands, which totaled more than $2 million. Moreover, the Freewest Option agreement between Freewest and SPQ-KWG just wasn't going to work because of the dollars involved. Mac got together with Neil and Frank and reworked the agreement. SPQ-KWG needs to spend $5 million for each of the next three years. The amending of the agreement by the CEOs and their lawyers took a long time to hammer out.

Fifth point: The general economy was/is crap (getting better though). Within this context Spider Resources was trying to raise money through a private placement in order to fulfil its JV partner drilling obligations. But it had problems. No one was buying. Yesterday though, Spider Resources has raised $1.5 million through a flowthrough private placement facilitated by IBK Capital Corp. These monies are the first of a tiered private placement.

So this is where we are; but where are we going?

The starting place has to be the "MICON 43-101" :

http://www.spiderresources.com/pdfs/NI_43_101_Micon_report.pdf

If you go to page 5, it reads "MICON recommends the following". There are eight important headings:

Definition of lateral limits and morphology of the deposit

Resource Definition Criteria

Investigation of PGE Potential

Follow-up on unexplained EM anomalies

Investment in Quality Assurance(QA)/Quality Control(QC)

Preparations for Resource Modelling

Additional Staff and Drill Core Facilities

Exploration Budget For 2009

There is a great deal of important information here of where Spider Resources (as well as KWG and Freewest because , remember, this is a 43-101 for the Freewest Option lands) is going.

In my telephone discussion with Mac Watson today (July 30), he candidly remarked "they're going to hit big time". Naturally, any of the three CEO's is going to be pumped with the possibilities of Big Daddy.

But there is one large issue found at the top of page 5 of the MICON report. We read here:

"In view of the remoteness and lack of infrastructure of the SKF JV area, the overall (global)size of the deposit will impact significantly in any future investment decision making process."

Are any of the JV partners dealing with this 'remoteness' issue? KWG is. Freewest is.

So where are we going? Much of it will be defined by Cliffs Natural Resources. Even for Spider Resources. And actually, I'm not worried about this. The future looks promising, but only for the patient investor. The chromite, the PGEs, the rhodium, and potentially the nickel are all underground at the Ring of Fire. It ain't moving.

All IMHO.

Snug