Silk Energy Ltd SLKEF

NI43-101

[millright]

There seems to be an acceptance by many on this forum that the Darcell fantasies provide a legitimate indication of the value of the resource. This is no doubt welcomed by those aiming to promote the stock - but the valuation gyrations contained in the darcell report, and as practiced by allbusiness and TXProInvestor are virtually meaningless. That is why regulator made regulations that define the requirements for NI43-101 disclosure. That is why Darcell avoids legal action, by qualifying his report saying it is not intended to be compliant with NI43-101 standards. Those who accept the Darcell type kitchen table calculations, through ignorance or in an attempt to deceive, over simplify what is involved in retreiving saleable Ni from the unprocessed ore body. They equate to being as simple as picking out one color of M&M's from a jar full of assorted M&M's - lets say the nice nickel colored M&M which might [like ISM's recent grades] make up 5 out of every 1000 candy pieces. Sounds easy, the method followed by Darcell and the cheerleaders is if we got half of one percent in a few jars we checked, we got them in all our jars. Well, there's a few things that change that in Ni mining - for one thing a few jars don't mean the whole property will be the same - but the big thing is that those nickel colored M&M's might not separate from the other M&M's as easy in one jar as they do in another. That's where professionals come in and start allowing for things that Darcell, allbusiness, TxProInvestor and the other wannabees haven't even considered. Different grades, in different locations yield recoverable Ni with differing degress of difficulty. Extraction costs differ, recovery methods must be altered and costs of processing can vary widely - to the extent that some of the low grades ISM has at Langmuir 2 can involve a very significant recovery problem that greatly affects the economics involved. Only those with no comprehension of the subject would approach the estimate with the blissful ignorance exhibited by Darcell, and micmicked by allbusiness and TxProInvestor. With someone as clueless as wailer, its hard to tell whether he's just ignorant of these implications, or knows about them and would like to deceive people in an effort to recover the high priced entry level he got suckered on. But if anyone wants to check this out, at least to the point that they know it can be a problem - just run it by a mining engineer, or geologist, or someone that's had some experience in the field - and make sure they are independent. None of these people can tell you in honesty that I am wrong in stating the recovery methods and processing costs must be altered based on the "makeup" of the ore being processed. Once you've found that this can be a problem, then maybe you can address the fact that the Langmuir 2 property includes low grades that will have a processing problem. Then maybe you'll realize why NI43-101's are done - and why the Darcell approach is meaningless. It also might give a clue as to why management have been reluctant to have the truth come out by commissioning NI43-101 disclosure. tinytonyg thinks management is worried about the cost involved. That's a laugh - they had no problem pissing away $2 million in NSR acquisitions costs that weren't necessary at the time - they could have spent this money to find out if they has something worth smelting.