Ann: Reduced Debt and Operating Costs at Cairn Hi, page-14

re: Ann: Reduced Debt and Operating Costs at ... dsmark,

I'm no expert at understanding the overall economics, but there has been a lot of drilling results so far that are around 0.3% nickel, and what is more, these results are up to 300 meters underground. These kind of results are low grade, and to be economic, they have to be able to be mined in bulk - more like an open pit (some of the drilling results are close to the surface, and well suited to open pit mining).

You might like to compare these grades to Mincor (MCR), or Western Areas (WSA) to help your analysis.

Obviously the high grade results (16% nickel) are truly spectacular, and would justify the expenditure for a whole lot of underground mining - even at Nickel's current low market price.

I understand The company has projected a cash cost of around $5 per pound (prior to the study), which is not that low, but would likely be profitable at todays market prices.

I await some more drilling results, and the feasibility study.

I think the advantage that IMX has, is that their cash flow from Iron Ore is funding the early stages of proving up the nickel deposits, and the Ntaka region looks pretty likely to improve their current discovery.

I am also hopeful that the Mt Woods prospect will find an economic investor, which is not factored into IMX prices today.

All in all, there isn't much downside that I can see.

DYOR

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"Älways forgive your enemies; nothing annoys them as much".
Oscar Wilde