The following are a few notes taken from the analysts meeting held yesterday. I hope they may be of some assistance.
The meeting was held in a theatre-like conference centre. All seats were taken and the isles were packed - a standing room only crowd.
Here are some of the facts presented by Doug Hume, Nuinsco's President and CEO.
1. Firstly, they won't be doing any new drilling immediately. Completely contrary to what I was told Monday by others, they have to first plow out 30 kms of existing timber road. From that point, they have to push a road/trail through 25 -26 kms of very heavy bush to the site. This is not scrub brush but rather very heavy, coniferous forest. Fortunately, judging from photos it is relatively flat. When asked about permits, Doug wasn't sure but someone else confirmed that "yes", they had just acquired them. When asked when drilling would start, Doug's response was, "I'd imagine sometime by the end of the month."
2. Asked about the financing, Doug again was not sure but thought it was all sold and a chap from the audience confirmed that all units, $10 million, had been subscribed.
3. There was a question about the number of claims and did they have the discovery fully covered. Doug said they had it fully covered, etc. and had in fact acquired additional claims. In the info booklet handed out, the land position is given as >300 claims or 54 sq. km.
4. To follow the next key point, you need the chart available showing I.P. and magnetic anamolies from their website. It is available at:
fort-frances.lakeheadu.ca
Two holes, 99-1 and 99-2 were drilled on L11+00N from the same
station located approximately horizontal with hole marked as 10 on the
chart. Hole 99-1 was the discovery hole and drilled at approx. 45 degrees to the southwest. Hole 99-2 was drilled at the same angle in the opposite direction. They have a section drawing but the basic concept is the following - the high grade ore is thought to be lying in a basin or ovoid which tends to flatten out at depth as it dips to the south. Think of a flat shallow basin with the nickel and copper sulphides settling to the bottom. The higher grade nickel and copper first appears at a vertical depth of about 75 metres in gabbro.
5. Their drill findings are not relating well to either magnetic or I.P. anamolies. The stongest I.P. anamoly was to the northwest where holes 3 and 4 were drilled last year. They both pulled zip. Instead their best results were found following surface nickel showings. If their present location is a winner, indications are it will be found at depth probably along the southern fringe of the area marked as I.P. anamoly by the heavy vertical lines on the chart.
6. When they first get drilling again, Doug says they will initially start with 2 drills but plan on three. They will also be hauling in fuel and supplies over the winter roads to last them through breakup and into summer. I have no doubt when they get rolling, drill core will be flying.
7. Another key point is the ratio of nickel to overall sulphides - it is 1:10 and has held like that everywhere on the property. This ratio was determined at U of T and was a determining factor in their decision to take on the property. Consequently, if you hear them report a hole to be massive sulphides, you'll know to expect upwards of 10% nickel. If they say disseminated to massive, etc, you'll know it's pretty good - perhaps in the 4 - 5% range. Don't know if they'll release visuals like that on next drilling as they did with their discovery hole but you are at least forwarned as to what it could mean.
8. One question Doug answered really said a lot. He stated that the drill was still on site and someone asked why they didn't keep drilling. Doug replied, "we felt we had about as good as we were going to get," and that drew a chuckle from the room. It was an honest answer but it also said he was pretty shrewd. They knew they had something and would need a lot on money to properly investigate it.
Now they've got it and the campaign begins.
Good Luck, everyone.
Bob |
