Ann: New Nickel Sulphide Discovery at Fisher East, page-18

re: Ann: New Nickel Sulphide Discovery at Fis...
I'm unsure of what Ian means when he says magmatic, perhaps he is just saying it's definitely not a nickel laterite."

It seems spelt out It is a nickel sulphide deposit and not a laterite deposit they seem concentrating on, maybe there are laterites near surface but I doubt they will mine them as would require a different and more expensive process with high pressure acid leach compared to simpler sulphide processing and shipping to a concentrator and smelter.

WSA are only getting around $795 a ton in positive cash flow from each ton of Ni sold which would be going for about $12K a ton giving about a 8% profit margin on the revenue
Given the resource RXL have so far is half the grade WSA have I will leave you to draw your own conclusions on the viability of what RXL have so far.

There is a higher grade envelope within the mineralisation which seems to be the smaller tonnage of ore shown with the higher cut off grade is it worth just concentrating on the higher grade ore ???
It looks like the cammelwood dyke is contiguous along strike South into Cannonball which could reduce development costs with decline/s.and also may result in being more selective in mining higher grade ore for the same tpa.



The drill intercept intervals in ore indicate The camelwood ore body also pinches and swells considerably and the 60 degree dip angle is going to make mining interesting if uphole stoping.
Things can change but is the blue sky diminishing?
Maybe as they go deeper and it proves to be like Kambalda grade will increase.
Just a novice interpretation of what I see and for my own use so really need people with a lot more knowledge on all the different disciplines involved guess that will come with a BFS or some bright old spark on HC.
To me the company cap is a fair representation of the intrinsic value of the deposit in a depressed Ni market with oversupply an tonnage in storage increasing but does not reflect the intangible of a very dedicated exploration team, and that Ni prices will likely increase by the time this deposit is ready to mine.