Choo good post, I think you are spot on. The interesting thing...

Choo good post, I think you are spot on. The interesting thing that the market doesn't know about Nepean is that it is another Flying Fox,owned by Western Areas in the Forrestaina greenstone belt. Flying Fox is one of the highest grade sulphide Ni deposits in the world. They have similar histories, both were mined in the late 80's early 90's,when the accepted theory of how Ni deposits were formed was way off base. Both stopped mining due to the deposits being cut off by flat lying intrusive pegmatites. It wasn't until the mid to late 90's that the geos figured out that the Ni which makes the Ni sulphide deposits comes from deep below the Earths crust in the mantle. The source rock is an ultramafic lava(komatiite) which has a unique chemistry rich in Ni which is deposited on the surface from Volcanoes. Imagine the lava flowing like a river from a volcano and the lava as it flows erodes the underlying sediment into a chanel because it is extremely hot. If the material it is eroding contains sulpher as the lava cools the Ni crystalizes with sulphur to form Nickel sulphides which because they are so heavy sink to the bottom of the channel.The river of lava acts much like a normal river so as it gets further from the source it breaks up into braids and eventually forms deltas. Then over the hundreds of million years that surface was folded and faulted into the present day landscape. The point I am trying to make is that the early miners did not realize that what they were mining was the equivalent of the delta or the braids at the end of the chanels and that if they were there then the source, the chanels that created the deltas etc, were close by down dip. The last event that occurred in the geology history was the emplacement of the the granites and associated pegmatite dykes which in the case of Flying Fox and Nepean stoped out part of the delta and they closed thinking that was the end of the deposit. The new understanding of the formation of ni sulphide deposits + the new down hole EM and improved directional drilling led to the discovery of Flying fox in chanels below the pegmatite. In addition high grade Ni sulphides were also found in structures within the overlying pegmatite which has led to a further understanding of these deposits in that we now think the these late pegmatites actually upgrade the Nickel grade of the associated deposits. As part of the new understanding of sulphide Ni deposits geos have learned that they occur in bunches in association with the source rock and to use multi element geochem to map the source rocks leading to numerous new discoverys. In the case of Nepean the source rocks have been mapped over a strike length of 40km and several sulphide ni anomolies have already been found. From a geos view it is an absolute no brainer that high grade Ni chanels will be found below the pematite, at Nepean and along strike. The big question is when they will get onto it. It looks to me that mgmt is "Focused" on getting the mill bedded down, growing reserves, generating cash flow, and growing their gold business. Mgmt have said they will get into it later this year but human resources(ie geos)are scarce and they would be flat out growing gold resources but they have in the past done everything they have said they would.