Mgt have stated that they would look at developement of Nepean...

Mgt have stated that they would look at developement of Nepean when nickel showed that it could remain over $10/lb. Sure it is now BUT the (artificially) high AUD would add many 1,000's on to the cost of a mill and may therefore still eat into the viability of the project.

From FML website:

"The Nepean Project is centred on the historic Nepean Nickel Mine, which produced 32,303 tonnes of mined nickel at an average recovered grade of 2.99% Ni over a 17 year period to 1987.

The current inferred resource based on the mine?s remnant, transitional and fresh mineralisation measures 591,300t @ 2.2% Ni, for 13,250t contained Ni.

In addition to the historical mine, which remains open at depth, the Nepean tenement package incorporates a 30km strike length of Kambalda-style komatiites with significant nickel sulphide mineralisation potential. This potential was identified by mapping, VTEM, detailed aerial magnetics and drilling along sections of the strike length.

A Bankable Feasibility Study comprising grade control infill drilling, mine design and processing engineering studies was completed in 2008 but due to sustained decline in the nickel price over recent times, Focus took the commercial decision to defer commencement of full-scale operations until the nickel price outlook improves. Nepean remains a strategic nickel asset which is strongly leveraged to a recovery in the nickel price."

Also, from SMH April 29th 2008:

"Focus recently began trial mining at its wholly owned Nepean nickel project, near Coolgardie, where grades of up to 12.53 per cent nickel were recovered during recent exploration drilling.

Last year, the company upgraded the Nepean resource by 45 per cent to 591,000 tonnes at 2.2 per cent nickel.

The Nepean project is centred on a historic mine, which produced 32,303 tonnes of nickel over 17 years to 1987.

Focus says it is on schedule to commence mining at the Nepean project this year."

Looks like they've already had a go at mining Nepean maybe by toll treating which could now be an option with nickel at $12/lb compared with $8 to $10/lb in 2008.

LOVE the 30Km strike length though!!!

IMO we need to do some more and deep drilling at the project to increase the resource. Some of the cashflow from gold production could be used to this end.

Nepean's certainly not going to be developed either by Focus or an IPO spin-off until they know what they're dealing with...

Regards,
chicken