Canada Nickel Company Inc V.CNC

S/Ni Ratio Questions

[PCGuy10]

Good Afternoon, there has been an accusation made on this board that both Dumont and Crawford can't be mined profitably because the S/Ni ratio is too low. This person said that it needs to be at least 0.3 as that is the min S/Ni ratio used on Page 9 of the PEA.

Could someome please explain, giving the reasons why this person is wrong?

[N3tPr0phet]

How are you so confident in your conclusion if you need the reasoning explained to you?

[PCGuy10]

Ok N3tPr0phet  Mabey I should have re worded the question. Think if it as a lodad question like the CBC debators where the 2 sides argue for and against. I'm not confident in the reasoning either way which is why I need further explainations. Either the statement is wrong and this is a wold class deposit, or the statement is correct and we have serious problem here, and a CEO who

[CravingProfits]

...I can not answer that question with any factual proof but if it is not economically mineable, I would think a few geologist, and nickel experts would have figured that  out  by now and shorted this thing back to under $1,00 by now?  Easy short opportunity  for them? Unless they are waiting for a $7.00 plus valuation? lol But still  a reasonable question I think. GLTA

[Rm90090]

Are people questioning the validity of the PEA? The PEA clearly shows that it is economically viable. Unless people are worried that it is all a massive conspiracy - then we should be researching the Engineering firm Ausenco that carried out the PEA.

[N3tPr0phet]

The PEA had some aggressive assumptions in it that significantly increased the project's economics. For example, assuming that somebody else would build a steel mill next door that CNC could conveniently use (1) decreased capex (because mills aren't cheap) and (2) decreased opex (because the iron byproduct would otherwise have to be transported for additional processing). At the end of

[Rm90090]

Great points raised!   The mill is a large investment and is being treated as a seperate business venture. Someone asked about this during the NIckel investment conference last year (through Crux). For the large low grade sulphides - it is generally beleived that the Major that takes them over would build that. The scale being built here is for 30-40 years providing approx 250M EBIDTA yearly.

[EndZonefor7]

I think the steel mill is a just incase angle but if global production kicks in big in a few years then a steel mill may make sense. Especially if global independence is wanted. Don't get me started on crapola Chinese steel,lol. If a big miner wanted it for EV nickel only then what they do with it after a buyout won't matter to us. The big boys will decide that. Don't forget the net

[EndZonefor7]

Bottom line is why not ask those hard questions when you're actually invested and not after you dump your shares ? After I sell I usually move on to newer horizons.

[Iwant2Retire]

A just in case steel mill is not exactly reassuring. Did Mr. Selby not say that he wanted to take Crawford into production if he got the right partner?  I'm pretty sure he did.  So that means $2B for a mill, financed by who?  What is confusing me right now is all this talk about other properties and other drill holes. I was led to believe that Crawford could start production

[EndZonefor7]

Iwant2retire, Incase you didn't know, you don't make the big money when a mine starts. You make it as they prove up more tonnage. It's called the speculative phase. Once all the surprises are known the price levels off. We want those 5 or 6 drills turning every day of the year and then a buyout by feasibility time.

[MOshowme]

EndZonefor7, I think you worded it perfectly.  When/If a strategic partner signs on and/or continued positive drill results outside of Crawford the remainder of 2022 push the stock price higher all the better, especially for those sell and buy cyclers. I want to see a buyout.

[apapas1973]

As large as Crawford Is iwant2retire, we are a lower grade but high mettalurgy project. Mark has been quoted several times talking about turning this into a district scale. That's the salesman in him. Unfortunately we need a good salesman for this project. My take is those add in properties are a must or else a major may not be interested. The majors with large market caps and deep pockets may

[EndZonefor7]

It's all about the metallurgy. With several big companies doing their technical analysis you can bet they will want to do their own testing, tho Glencore facilities give great credibility to the process. Every CEO's top job is to be a salesman and Mark has done a great job so far. The strategic will tell the tale of how well a job he did.

[N3tPr0phet]

Not even close. Mining permits are not switches that can be flipped.

[EndZonefor7]

Good discussion. Still trying to learn the sulphide ratio stuff. Tells me it's more than feasible but lots of work to still do on improvement. As Craving says all these mining analysts can't be wrong. 7 of them plus Ausenco have reputations to uphold of 20 years plus. Pierre Vaillancourt of Haywood knows his mining sh*t. A strategic deal will soon put this concern to rest.