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To: ms.smartest.person who wrote (1875)	12/7/2006 7:05:54 AM
From: Condor	Read Replies (1) \| Respond to of 3198

Rupert Resources: all the way to 3000 meters Disgustingly deep (10,000 ft) and expensive mining fraught with immense technical challenges and costs. Go jam 5 grand into a slot machine instead IMO. C

To: ms.smartest.person who wrote (1875)	12/8/2006 3:43:27 PM
From: ms.smartest.person	Read Replies (2) \| Respond to of 3198

&#8362 David Pescod's Late Edition December 7, 2006 If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com CANADIAN ROYALTIES (T-CZZ) $2.43 -0.07 For the first time in years, veteran mining man Richard Faucher tells us he’s having fun, pointing to record high commodity prices and figuring we are about “five years into a 20-year bull market for metals”. Faucher compares this to much of his previous 23 years in the mining business. There, his job in the main was turning around major mining operations such as Gaspe Mining (New Brunswick) and Falconbridge (Dominican) for some of the big mining companies of the day. He was mainly clawing and scratching to save a quarter here, a dollar there, to keep mines going. “For much of the past few decades it’s been survival” he says and points to Falconbridge (Dominican) where to keep the mine going, $20 million in costs had to be cut and taxes cut another $20 million for the mine to keep on going. Now Faucher has been brought on board by Glenn Mullan and the team at Canadian Royalties to develop Canadian Royalties as a producer from an explorer and “it’s a great time to be attempting that” he suggests. While we may have written up CZZ before from time to time, we may have given up on CZZ at the wrong time as they now appear to have a lot of something the world needs—nickel. And nickel prices are soaring! Their major asset, the Raglan South nickel/copper properties in as far northern Quebec as you can get, but just a few miles from Falconbridge Raglan, which has been up and running for the last seven to eight years. The Raglan South is an amalgamation of five deposits of various size and depth such as the Expo, the Mesamax, Ivakkak, Mequillon and TK bodies that as of March 2006, have indicated reserves of 11 million tons of 1% nickel, 1.2% copper as well as gold, platinum and palladium credits. It’s a short, four month drilling season way up north and then months of waiting to see assays and planning for next year. But now the company has initiated a time frame to see permitting, environmental and social impact studies completed and a bankable feasibility study to be done around June. Construction of the $225 million project is expected in 2008 with production in 2009/2010. Currently they predict an initial mine life of 10 years, producing 2500 tons per day with 20 million pounds of nickel and 22 million pounds of copper per year. For those punters following the company, four more batches of assays are expected in the coming weeks/months from the past years drilling. When new resource numbers are completed this spring, there are hopes for some pleasant surprises. Needless to say, Faucher on his trip by our office, suggests “CZZ is way undervalued” - and uses charts, comparing the company to other potential nickel producers. What’s putting a smile on his face is the numbers he’s using to make sure the project is economic. His base case calls for $1.25 copper and $4.50 to $5.00 nickel. Currently copper is $3.00 and nickel is $15.00. He’s happy for current prices, but he wants to be sure the project can survive ugly dips. Twenty-three years of expecting bad news, can do that for you. As for his favorite commodity, it’s nickel. He points to the scarcity of new mines and the trouble with new ones getting into production. The huge Goro project he points out, was supposed to cost $2 billion, now forecasts suggests closer to $3 billion and it’s faced delay after delay. And it still faces local opposition and suggests it still may not get built. CZZ’s project is way north in Quebec where folks want and need good jobs and the mining industry has a long, productive and very important history in the economy. Faucher also points to the decline in mining jobs in Quebec as mines run out of ore, which he suggests will continue and he hopes to have little problems finding the necessary people and skills. When we ask Faucher for a stock pick, using the usual rules—can’t pick one you would have a conflict of interest with, he persists...and suggests that another junior he is on the board of, Globestar Mining (GMI), with a nickel play in the Dominican Republic has lots of potential…. And yes, there are lots of big miners out there that need nickel (five mines control 65% of the nickel market), so yes, might Canadian Royalties look tasty to someone else?