Is SHN prospects as good as the media reports suggest? Yesterday...

Is SHN prospects as good as the media reports suggest? Yesterday read write up and buy recommendation on SHN in current issue Shares Magazine and this morning saw the article below.

I have a small holding and get the feeling this could be a good sleeper to hold. Any opinions?

From The NZ Herald 20 October 2004

But older deposits are also being revisited to feed the China boom.

Another Australian prospector, Sherlock Bay Nickel, said it was discussing an off-take agreement in exchange for an investment of about A$5 million ($5.3 million) with various companies from Europe and China, including Jinchuan.

Managing director Albert Gerick said he hoped to conclude a deal soon to start shipping nickel hydroxide, containing 30 per cent nickel, as early as June next year from a body of low-grade ore discovered in the 1970s in Western Australia.

It plans to produce about 8500 tonnes a year of nickel, 1600 tonnes of copper and a small amount of cobalt, he said, using a new technology known as bioheap leaching.

LME nickel prices have doubled in the past two years, as dwindling global supply at a time of growing Chinese demand has pushed inventories to record lows.