The issue of what SIR might be worth is directly related to the...

The issue of what SIR might be worth is directly related to the "option" in the stock representing further discoveries beyond what is already known about the Nova discovery.

Brokers put a value on what they think the known resource might be in terms of tonnes/grade, capex, opex and the likely nickel and copper prices. They will already be estimating these elements, and come up with a "value" for the stock.

But the real issue driving ultimate value is just how big might Nova become, and what the ultimate value could be.

Perhaps even more importantly, it is well recognised that a new discovery in a new province opens up formerly unrecognised potential for further discoveries. The discovery of Nova will have many geologists looking at the characteristics of the deposit and the setting, and the way those characteristics show up in the geology, geophysics and geochemistry. They will be looking at the wider Fraser Range environment with new eyes.

It is also known that these types of deposits occur in clusters, and there is nothing to say that Nova will be the only discovery, or that it will be the biggest if other deposits are located.

The Fraser Range province will now become the focus of intense interest, and a lot of exploration funds will be spent in quite a short time. Those holding SIR, or the other players (BUX, ENT, SFX, BOA, MAT et al) are hoping that further discoveries will be made, and potentially bigger discoveries than Nova.

The fact is that nobody can accurately say what will happen. For mine, though, I am happy to retain exposure to the area.