Monday, December 14, 2009
SUPER BOWL TIME in the RING of FIRE
The vaunted and feared "Hail Mary" forward pass, in the hands of serious Quarterback like Brett Farve or others, has undone many smug game leader. After completing a couple well executed "Hail Mary" passes, it is apparent to me that FREEWEST is establishing "Orbital Escape Velocity" from being an undervalued Junior Explorer to being a sought after company.
Notre Dame Stadium pictured holds not quite 81,000 fans. Try to imagine, after reading the reports of the deposits BLACK THOR, BLACK LABEL and BIG DADDY, how many NOTRE DAME Stadiums will fit into the footprint of the proposed pit mine. BLACK THOR
is traced 1700 Meteres [ thats 17 football fields the long ways ] long, and 50 meteres wide [ same as your basic width of football field ].
IMAGINE NINE [ 9 ] NOTRE DAME FIELDS side by side two [2] by two [2] thats BLACK THOR alone, just Black Thor. Black Label, and Big Daddy are not even included in that.
Have you done the MATH on the Chrome Farm Project? I am working some rough math and comparisons and these numbers suggest a take out price at least one, maybe one and a half, orders of magnitude greater that what we have
even spoke about.
We are talking about clearly bowl shaped deposits available for pit mining once the 3-35 meters of overburden is removed [ reformed into dykes if need be? ][ we will be in bedrock, rather than muck so it will be stable as we reach the ore]. BOWL SHAPED Deposits. The only thing you can do is pit mine them LOL, since they are so perfect for it !!
When I stop counting the zeros in my calculations, later this week I will have some of my SWAG estimates of what this deal could produce for whomever ends up with it.
Bottom line is this deposit is a "GAME CHANGER" for the stainless component market. If a smaller company like CLIFFS gets it, they will be able to "JackHammer" their way into the stainless component market because they hold
the PRICE HAMMER in this, probably the lowest cost of deposits on the planet. If a Super Major, already in chromite gets it, they will CONTROL the Chrome Market.
Since Xstrata is closing out older mining assets and leaning down in Canada, they are likely to attempt to buy in.
Despite my concerns, I am not sure Xstrata could partner with CLIFFs but such is possible. Since X is a miner, it would seem unlkely plus I am sure the US authorities would NOT like it a bit.
More likely CLIFFS can develop an offtake partner agreement with someone like Acelor, who is PRODUCING Stainless, but again if you thought politics made strangebedfellows, just watch..........
The other side of that spectrum is that VALE, BHP and RTZ are familiar with this deposit, so their interest cannot be discounted. Once you total up the dollar value of the deposi; the national strategic value; the business strategic value, it adds up to inability of two or more majors to ignore this deal. To ignore this deal would clearly and openly run against their own interests or suggest a change in direction in their philosophies. No such change has been signalled so I am glad to hold my shares in FREEWEST until the CHROME FARM is really, really, really sold, not before. This does not even address the potential of others in the RING. Close by and getting a lot of action are PROBE and FANCAMP, plus SPQ & KWG, the last two,curiously have having "Dead Cat" bounces rather than "Hockey Puck Richochets" again curious to me, which might yield to the proper due diligence.
I think the answer is in the math. I also think the math is telling us that the real value of this property is at least one if not one and a half orders of magnitude larger than what we have seen to day.