Ann: Pre-Feasibility Study for the Isabel Nickel Project-AVQ.AX, page-23

We now have a PFS done by a third party validating it as a “viable” mining project – where are all those saying it is too low grade or Axiom’s numbers are not validated by third party’s?!?! well if you have a closer look at the author of the PFS: IMC’s client list is top notch eg BHP, Xstrata Vale etc etc.

My first glance at this looking outstanding…NPV of US 188m (AUD ~$250m) so therefore shares should really be trading around 50 to 60c. However looking at page 6 at the sensitivity chart it points to the NPV rising to US363m (AUD~$500m) ifs nickel price go back to where they were just two years ago ! So lets just remember we have a project worth $250m based on nickel prices that are still near 13 year lows !

And this all appears to be from Axiom’s small amount of drilling and INCO’s data. So there for expect this to be upgraded when they start drilling on San Jorge which I believe will likely produce results like Kolosori ie higher grades below where INCO drilled (or where INCO didn’t drill deep enough).

Looking at the front page it also looks to validate Axiom previous numbers (or bettered them) eg 2.2mtpa and $11/tn for OPEX. And CAPEX has come down from US$25m to US$18m...... Still Not Viable u say??????????