Royal Nickel Corp. RNKLF

Rnx

[arh0070]

I have just a couple of comments on the news release .
1) they do not appear to have found another Father’s Day vein but this is icing on the cake perhaps in the future .
2)perhaps more encouraging is the statement that grades improve at depth up to 6-7 grams per ton ,but this is nowhere near what they have at fosterville.
3) the overall grade of the reserves most of which are not yet proved is low at 3 grams per ton .This is why they had to buy the higginsville plant since previously they were only marginally ebita positive with this grade and it remains to be determined in the future how profitable this will be given thier royalty structure .
4)some on the increase in reserves is because they can mine lower grade because of the higginsville plant and also the increase in the POG.
So in my opinion for what it is worth the results are somewhat disappointing ,mining underground at 3 grams per ton with a plant several Kim’s away to which material has to be trucked is not a barn burner .No doubt the booster club will bang the drums but there are many better gold miners in which to invest ones money .