RE: the new 43-101 technical reportHere is my issue with the report:
1) The author states that he used a 0.4% Ni cutoff, because
Based on the results of similar open pit nickel projects in Canada, a 0.4% Nieq cutoff
was used to tabulate the total within the various categories. This based on the
following parameters;
But I don't see the East Zone being an open pit operation. The North & West Zone, perhaps, but not the East Zone. So it's like saying the North & West will be an open pit, so let's assume the same for East Zone.
One of you longs should ask the geologist on the conference call whether how likely the East Zone will be an underground mine, and if so what is the average NiEq for underground mines in the region, and Canada!
When you get that answer, you can look up the grade-tonnage chart here:
https://i.imgur.com/Ueo1j.jpg It's only for the East Zone //where the vast majority of the resource is.
Or page 77-79,if you're using Acrobat Reader.
But here's the point. If the NiEq cutoff is greater than .65% NiEq, tonnage drops very fast, and you may have an economic mine, but not an elephant.
Also the assumption of the long term metal trend are
very skewed for platinum, and palladium, and nickel (the author is very bullish on platinum, nickel, palladium, given his assumptions are current spot prices), which in turns skews NiEq, and grade tonnage chart. Thus the data model will be very sensitive if these metal prices fall below these price assumptions.
Long term average metal prices in $USD of $9.52/lb nickel (NiEq pricesbased on this amount), $2.96/lb copper, $15.78/lb cobalt, $1085/troyounce gold, $1776/troy ounce platinum, $689/troy ounce palladium;
That's my assessment. I still think this NKL should have a market cap around 60-70M, given all the uncertainties