Ann: Rox Increases Nickel Sulphide Resources Over 100%, page-39

Great announcement today. The Musket Resource estimation came a bit under my predictions but still a really nice result. Doubling of anything is also welcomed. I did a rough back of the envelope calculation of what the current Fisher East nickel sulphide project means in terms of potential value and also a bit of day dreaming of what could be. Other high priorities targets such as Cutlass, Fisher South, Jims could support the big blue sky.

Note that if you do intent to read on, please be aware that these are my own poor interpretations and understanding of the project and I used figures that seem reasonable to me but could be many orders of magnitudes out. Please also do tell me if you think my figures are way out of proportion as we are all here to share and learn. But do provide the reasons why as random numbers drawn out of the behind is not helpful.

Items such as CAPEX is extremely hard to predict especially at this early stage but I believe could be in the range of $350-$400 Million for a project capable of producing 10-15kt of Ni per year. Again, even the most experienced engineers get it wrong, but I did find it in Poseidon's Mount Windarra project estimated CAPEX ($348M). As for production cost, I've chosen $5/lb ($11,025/ t) after Mincor's 2014 Key operational results. I also neglected important items such as Resource to Reserve conversion as not 100% of the resource in mineable and things like cost of borrowing, taxes are also left out.

So here you go, read at your own risk, DYOR and GLTA.