SmartCentres Real Estate Investment Trust T.SRU.UN

RE: SRU HIGHER GRADES VS INCO LOW GRADES

[madmagoo]

lets face it i don't know and you don't know. there is alot of factors in determining project feasibility and most of these factors have not been addressed or are even close to being determined yet, simply because the project is in the early stages of definition. before economic grades can be determined and classified sru needs comprehensive metallurgy, method of mining: a combination of openpit, incline ramping, deep shaft undergroud who knows; frastructure roads, ports and holding facilities; etc. i do know one thing for sure, a lot has changed in 50 years, extraction, smelting and mining technology, metal prices, uses and demand for metals. i do not know alot about geology however i do understand resource economics. a resource is not a resource until there is demand and profit in extraction. there are lots of examples of uneconomic deposit becoming economic due to scarcity and or improved technology and increase demand. a non-resource becomes resource with demand. The use and demand for PMG has also changed in 50 years since INCO looked at the property reflecting current metal prices. as the development of world wide technologies increases the demand for rare earths and PMGs also increases leading to an imbalance in supply/demand. is it realistic to state that INCO looked at the property 50 years ago and determined uneconomic therefore shall remain uneconomic? i think not. metal prices and technology ultimately determine the resource and extration of that resource. (i.e. more recent example NorthMet) This deposit need to be evaluated according to todays metal prices, available technology, demand, potential resource scarcities etc. not the fifties. to simply say inco dropped the project fifty years ago therefore it will never be mined is weak and short sighted. however your metallurgy case is very strong and i can not debate it effectively. however i like statistics and use them in design at work so it will take alot more than 6 old samples to scare me off if you know what i mean.