NORTHERN SUN MINING CORP LBEFF

I got blinkers, Bob!

[hank2010]

At least part way on. These widths are very narrow and not necessarily true widths. I have seen so many people try to mine 1 foot and 2 foot veins and blow the materiael on over H's half acre. I was scared (and posted so, I think)when I had read that they were going to start to mine the cobalt. Deja vu all over again! However, the fact they are drilling some more is encouraging. I calculate a weighted average grade of 10.47% cobalt over an avg. drilled width of .55. Assuming that the hole hit at an angle of 45 degrees we would still have a true width of .41 metres. That 10.47% works out to 209.4 lbs per ton at $30.00 equals $6282.00. Even at $10 per lb that would be $2094.00 per ton (so why were WM and MUM not interested?). The holes were 100 metres apart so we got a strike length of 200 metres min. The big question IMO is continuity along strike. they reported hoes # 2, #3, and #10. Wer holes#1 and 4 thru 9 drilled on this structure? This is some very big dollars per ton! Cobalt is tough to concentrate with poor recovery. I think 80% range is correct. but 80% of 6282 is still a big number. Guys from Inco have told me about the new approach taken 15 or so years ago when the emphasis on low costs per ton of ore produced was changed to low cost per lb of nickel produced. That would have to be the case here, in spades! To maximize revenue will require some very tough discipline in the mining to avoid dilution. Small drill holes, covered blasts, take the HW off first etc. etc. Get rid of anybody who starts to talk about high or fast production. Taking a third look at my cobalt property notes Charles!