Royal Nickel Corp. RNKLF

Fosterville

[arh0070]

The results published today are decent .To compare with fosterville ,its average grade is currently around 40 grams per ton ,Kirkland lake owns its own processing facility .It makes about 900-1000$ an ounce at these grades ,it made good money when grades were lower at 17 grams per ton .I doubt if RNX can make much money on underground mining given its royalty structure at grades much below 10 grams per ton and certainly not at grades in the 3-5 gram per ton range .gold is in a bear market with prices dropping ,rnx has huge financing requirements and large numbers of shares outstanding .It was bailed out of bankrupcy by the Father’s Day vein .Today it is down on “sell the news scenario.So it remains to be determined if rnx can make it or not .arh