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Gold/Mining/Energy : Nuinsco Resources (NWI) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Nash who wrote (2976)	4/6/1999 7:50:00 PM
From: Just G	Read Replies (1) \| Respond to of 5821

Thanks and you hit the nail on the head. Regards G

To: Gary Nash who wrote (2976)	4/7/1999 10:22:00 AM
From: Natrav	Read Replies (2) \| Respond to of 5821

Gary: Can you respond to this analysts comments. I cannot say what analyst or what firm. Which is more valuable: 1.59% Copper and 9.59% nickel, or 0.25% copper and 10.8% nickel?1 It's hard to give answer, and even harder to calculate average grades for material with more than one metal of economic interest. For such complex mineralization, I prefer to squeeze the grades to a single number, the NSR (Net Smelter Return) per tonne. This is the estimate of the netback from tonne of ore once it has been milled onsite and shipped to custom smelters. In the following comment, I est. NSRs for the material sampled in Nuinsco's current drilling program at its Lac Rocher property. Key assumptions are that 85% of copper and 31% of siler are recovered to a copper concentrate of grading 25% copper, and 88.1% of nickel and 75% of cobalt are recovered to a nickel concentrate grading 17.5% nickle. I also assumed current levels of metal prices, custom smelting/refining fees and exchange rates. Lac Rocher NWI has examined by diamond drilling, about 150 m of a 1km long geophysical anomoly on this property. Typically drill intersections have been tens of metres of material with NSRs of about C$38/tonne, and 2 or 3 metres with NSRs of about C$530/tonne. Assuming each intersection to be representative of the material within 25m, assuming a relative density of 3.5 tonnes per cubic metre and a cut-off grade of C$25/tonne and assuming that the material is diluted by 15% during mining, I est. that NWI may be able to demonstrate 3 million tonnes of material grading C$37.20/tonne in the area tested so far. If it were to cost C$25/tonne to extract and process this material, it would have a net value of 3X(37.2-25)=$36 million or $0.69 for each of the 53.3 mill shares outstanding. Admittedly,this figure is before any allowances for taxes and capital costs. However, it gives an idea of NWIs sensitivity to any future discoveries (recalling that only 15% of the anomoly has been tested so far). Moreover, my calculations, with respect to the extent of the $530/tonne material, are conservative. Geologically, the style of mineralization discovered by NWI is typically formed in large scale systems. It appears likely that NWI will discover more of this material as it drills further to the south. 1. At todays metal prices.