I had a Geology PhD friend have a look at the cores and the overall position of the mine. He has a lot of experience in granites. This is what he came back with....
They seem to be right about a few things. Finland is definitely known for its nickel-sulphide systems. They state the mineralisation is associated with gabbro/peridotites. This seems very true becasue these rocks come from the mantle and are a very rich source for chromium-nickel-copper-gold. These are very dense rocks too, so the gravity survey is right about it identifying a dense body. The EM would pick up the sulphides, as they are highly conductive. It seems very likely that this is an sulphide bearing body, not only from the density/EM surveys, but it looks like a sill or a dyke type structure. This would fractionate the melt slowly and with the aid of gravity, it would leave behind a layer of sulphides (this is the ore body they are trying to drill). The XRF is very positive because 0.5%Ni is reasonably high as my granites might only have 0.01%. The drill core pictures definitely show a silvery nickel bearing section, so they are not lying about hitting ore. However, as you know estimating ore grade is a guessing game.
However, overall i think there is no reason to suspect a dud project. This area already has operating nickel sulphide mines and i am sure more will follow. They just need to get a handle on ore grade estimation by drilling a few more holes. Now would be the time to invest because if it turns out that the dense body is mostly economic sulphides you will be kicking yourself.
Any one else out there have any opinions?
DRK Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
