Nuinsco has the Rainy River Project and the Cameron Lake Gold Mine
as their only properties. The Mussel White is owned by INCO out of
Sudbury and that was found over 20 years ago but due to its location
being so far north (an hour plane ride out of Pickle Lake due north)
they have only just started or begun to mine that deposit. It took years
to put the road in and build the camp. I was just using the Mussel
White as an second example of how those who say they were that found
a deposit actually were not. Sorry for the confusion there fish. As for Nuinscp
well you have to appreciate that deep holes are very expensive, for
example a 3000 foot hole might run $25,000 to $40,000 a hole depending
on several factors like overburden, rock type (hard, soft, broken),
moving cost, the drill type used, the company and time of year. So when
you as a exploration company want to drill one of these you want to be sure
that it will be worth it in that the geology information gathered will be
worth the cost. Since at Rainy River we have no outcrop rock because
bedrock is covered by over 100 feet of clay and boulders, left there
by a large inland ocean that stretched from the rocky mountains to
Ontario border millions of years ago and also from the movement of glaciers
after the inland sea receded giving us the praires, we have no way of knowing
the rock types or structures below surface unless we just drill to find
out. This is why the project has been taking so long, we have spent the last
several years trying to discover or decode the geology. This makes
deep holes not practical for a junior to drill because we would use up
the drilling budget so fast and would not gather enough info in the process.
The resident geologist has already had to alter the geology map for our
area several times based on our findings because the map is wrong or
incomplete. Here is an analogy for you. I bake you a cake say 2 feet long
by 3 feet wide by 1 foot beep. After it is baked I cut a small hole on its surface
and insert a gold coin into it. If I ask you to find the coin all you have to do is look
on top of the cake and see where I damaged it and you will know or
have a real good idea where to look for the coin. Now lets say I cover the cake
in icing 1 inch thick and I give you a straw ten feet long and tell you
you can cut off any length and insert it into the cake to try and hit the coin
, but once a straw is inserted you can not remove it and you must cut off a
new peice and try again. So your choices are to cut the ten foot straw into
one foot pieces and then you will get full penetration of the cake but
you would only have ten tries and this is a big cake. You could also cut
it into 20 pieces or 30 pieces which will give you more tries and maybe
one of those less deep straws will find an area where the icing is a little
deeper which could indicate the area where I damaged the cake to put
the coin in. Now you could use longer straws here with a better chance
of success. So think of the straw as our exploration budget for the year, big mining
companies have big budgets and juniors have small ones in comparison
and because we raise money by talking to investers these guys want to
see some kind of a return on their money (ie proof that we are onto something)
so we can not just go around drilling deep holes because odds are we will
not find very much and investers will pull out and it will be real hard to get new ones
as news spreads. It is a real game out there fish. It is MY OPINION and the OPINION
of a few others, who have several years in mining, that something is here and it if fairly
large and that the glaciers did not get too much of it at all. It also probably
will repeat itself over in other locations on the property. This rock is extremely
mineralized. Nuinsco does not really have a handle on exactly what they have
because the geology is very complex, I mean we have gold values everywhere going
from anomolus or trace all the way to 75 oz/tonne, these occur in an area about 100
meters wide by 300 meters deep by over a kilometer long. The rock is not uniformly
distributed with gold it occurs in highs or lows and it has been very difficult to get an
exact tonnage size and grade. The annual report is due out in June and they will
publish what they think they have. I think their value is low for two reasons. 1) assaying
carries a built in error due to the error in measuring with equipment. I mean no measurement
is without error + or - some value. Also there is human error built in as well which compounds
the experimental error. There is no real way you can reduce this. As a reult assaying generally
under estimates the true ore body grade by about 10 to 20 %. This has been shown time and time
again when mines go into production they tend to find more than they assayers thought was there.
2) since the gold in not evenly distributed and is occuring in highs and lows that we call The
Nuggeting Effect, which means pockets of high grade where gold has been trapped and accumulated
when it was following into the rock as solutions, occur everywhere in this structure
and at varying depths. We do not know how big these pockets are ( a small desk, a living room
or a three bay garage to give sizes). Because of these two facts it is MY OPINION that there value
is too LOW. Now you know the rules you can not go around saying how big your ore body is
and giving a grade without HARD DATA THAT HAS BEEN ANALZYED ACCORDING TO
STANDARDS ACCEPTED BY THE MINING COMMUNITY, unless you are Bre-X and stand up and
say at a MINING CONVENTION to the world the we have 200 million ounces and no core
to show you. You can only say what know and what the data supports.
As for the deep holes they have done a few but no barn burning results. The summer program
I think should move to the new areas where we have gotten some good indications and that
they should try a chase the nickel again. As for the Mussel White the guys name who made
the call was JOHN MULLOCK and he has since retired from INCO. It was the
Musselwhite Brothers who were the two prospectors who took this property to the Majors.
The origanil six companies where INCO, PLACER DOME, ESSO, NORANDA, LACANA, and
GOLD FIELDS. In the end it was Inco and placer dome who were still in it
As for Avalon. Here are the good points. Their board of directors are all in mining and have a
lot of mining experience both in the field and at the cooperate level, it is not a bunch of lawyers
or business men who know nothing about mining. They have a lot of very good properties which
have potential for discoveries. They have money in the bank and are currently drilling on
several of their properties. They have a low stock meaning the doubling factor is good.
I say it is a good speculative stock and I am in on it. You will have to watch it carfully as it
is prone to swings in price. As for Nuinsco they have the best shot of
anyone I know for a discovery it is just going to take time. Anymore questions feel free to
post them but I can not give you the insider stuff. Read the Annual Report and I think you
will be very impressed. As an aside, if Nuinsco walked tomorrow the majors, all of whom have been to
the property and taken samples, would be fighting over the ground. Nwi owns 100% interest
in this and they want to keep it that way. This means a discovery would pay off big for the
shareholders.
Signed RED-5 ( We have 4 inches of snow in Calgary Today)
PS excuse the spelling errors
PPS punch in AVL and do a search In Carlsons Online for more info
they have an extensive chat line posted like NWI does in Silicon Invester
and also it will give you AVL home page location, lots of info there |
