Balmoral Resources Ltd BALMF

1% Nickel is roughly 4g/t gold (AuEq)

[goindeeper]

so this is already in the range of automatically being an economic underground mine.

When you convert the Ni intercepts to AuEq as shown on
https://www.balmoralresources.com/i/misc/2014-08-18_NRM2_map.jpg
you get some pretty big numbers such as 61m at 5.2 g/t AuEq


from explanation of Nickel Sulphide Deposits at
https://www.balmoralresources.com/s/Grasset.asp?ReportID=650193

At current metal prices (April 29, 2014) of $8.30 per lbs for nickel and $1300 per ounce gold a rock containing 1% nickel, on a 100% recovered basis, would be equal in terms of recovered value to a rock containing 4.38 g/t gold on the same 100% recovered basis. Obviously most nickel deposits contain significant copper, platinum, palladium or other recoverable minerals which then ultimately add to the potential value of the intercept. For example, again on a 100% recoverable basis adding 0.10% copper (at $3.20 copper), 0.15 g/t platinum (at $1400/ounce platinum) and 0.35 g/t palladium (at $800/ounce palladium) to the same rock adds a potential value of 0.53 g/t gold equivalent to this same rock (for 4.91 g/t gold equivalent). These numbers serve only as a guideline to assist in making a comparison and should not be relied on in making any form of investment decision.

For the calculations above:

The gold grade equivalent used is as follows: Gold Equiv. (g/t) = (Ni grade x ((Ni price per lb/Au price per ounce) x 0.0686 lbs per oz x 10000 g per %)) + (Cu grade x ((Cu price per lb/Au price per ounce) x 0.0686 lbs per oz x 10000 g per %)) + (Pt grade x (Pt price per oz/Au price per oz)) + (Pd grade x (Pd price per oz/Au price per oz))

The metal prices used were: Gold $1300/oz, Nickel, $8.30/lbs, Copper $3.00/lbs, Platinum $1400/oz, Palladium $800/oz