"TWELVE WEEKS of M & A Activty in the RING of FIRE

RED=CHROME, BLUE=PGM's, YELLOW=NICKEL, GREEN=COPPER

OR

FWR=RED, FNC=BLUE, SPQ=YELLOW, KWG=GREEN

and so HAPPY HOLIDAYS TO ALL YOU AND YOURS. We sing our holiday song to the tune of
"The Twelve Days of Christmas" and we are so happy and grateful to be in the RING !

"On the 12th Week of M & A Activity, the RING of FIRE gave to us, 12 Juniors Staking"."

AND Two Improved Bids for FREEWEST, plus two new rumored "interested parties". Wow its beginning to look a lot like Christmas ! !

"On the 11th Week of M & A activity, the RING of FIRE gave to us, 11 Drillers Drilling" AND
an improved ALL-Cash offer for FREEWEST from CLIFFS. Wow, its beginning to really feel like Christmas ! ! !

I just bet you that some very big reindeer [ moose size maybe ] is gonna come in here with Santa riding on his back, with lotsa goodies for all those holding good RING of FIRE properties. So far FNC, PRB and FWR are getting the attention, but I want to see what Santa has for everyone. So far the Santa Radar only has FNC, PRB and FWR showing. Maybe more towards Chrimstmas some more will show up.

Be good and hold onto your shares, no matter who tries to take them from you, as SANTA KNOWS what is the RING of FIRE............... and "DADDY WONT SELL THE FARM"



HAPPY HOLIDAYS EVERYONE !!!

A bunch of white guys with weird accents, ehh?

Webequie is located on the northern peninsula of Eastwood Island on the Winisk Lake, 540 kilometers north of the city of Thunder Bay, or 450 kilometers north of the town of Sioux Lookout. Access is only by air or a seasonal winter road. There is no year-round road access. The nearest year-round road access is the town of Pickle Lake, 250 km to the southwest, or the town of Nakina, 320 km to the southeast. Charter air service to Webequie is available from both of these communities.

These guys companies sound like alphabet soup, and they supposed to speak English, but its not the same, somehow.

Now I dont bother posting the charts of the companies they are hunting, and they are hunting. Its almost like "ALIEN" vs. "PREDATOR", with a twist. Maybe not TEN BILLION, but they got plenty cash, if only half that, so I asks myself, how far could they drive the price of a couple Junior explorers if it was known they were looking. Now this late in the fall, the weather wont support the "Fishing" excuse, so I guess that is NOT what they were there for. It doesnt even matter which ones it was, but rather, that THEY were there.

How much energy will the knowledge of their presence add to the mix? I really dont know but I do know it will push the envelope when the total of the other two bidders market cap is less than the cash position of one or two of these companies? Strange what might result. I think if you scroll back thru the older posts, you can see some of that TA with the prices I am seeing projected for at least one of the Juniors, FREEWEST.

The CHROME FARM -> a review

Since there is no other known resource with the same unique characteristics, infrastructure, proximity to shipping or markets, now or in the future. Given the project, like all mining projects will take time, there are no fatal flaws in the way of this one, which is part of its uniqueness.

CHROME -> the source countries are not viewed as desirable or reliable sources, due to constraints in their supply and infrastructure, and costs.

FREEWEST CHROME FARM: yet to be developed but requiring no new technology, but rather capital inputs, will supply at least the Western Hemisphere with CHROME for the foreseeable future with chrome at market prices, profitable to its producer.

STAINLESS STEEL: As with all progress, there will be MORE stainless produced in the future not less, West or East. Who makes and uses stainless? The same old actors, the industrialized and industrializing. Lots of people around the world want to have stainless in their lives to improve it. We go forward from here.

PRODUCERS : Basically the CHROME FARM is irresistable to at least one of the MAJORS, IMO. One of them is going to jump, sooner or later. There is no current substitute for chrome, nor is there an available chrome deposit like the CHROME FARM.

So far we know certain "Indicator Institutions" are in there "bird-dogging" the way, kinda pointing what they think are good long holdings. Looking at Pine Tree Capital, we see they tend to be HOLDERS, rather than short-sellers, so they are not really what you'd call Heddgies, per se. The fact that PineTree is TSX traded is a plus. Now not exactly a vulture fund but a real BAY STREET BUDDY to who knows whom, my thoughts are that they are in it for the bucks, now or later. They bought FREEWEST for Cents. I dont think they will sell FWR for CENTS, I am more thinking that they want to sell FREEWEST for DOLLARS. In this respect you can say PineTree is calling FREEWEST, DIALING FOR DOLLARS. I want DOLLARS, not Cents. You want your nickle's, dimes and quarter to make DOLLARS ? ? ? PINE TREE CAPITAL DOES !

I wonder what major will be Our FIRST Dollar CALLER ?

Since the CHROME FARM has value to a minimum of a dozen global firms plus any number of nationally run funds, you have to wonder who will be our NEXT DOLLAR CALLER in the FREEWEST CHROME DIAL-IN DERBY??

Which institutions are dialing in now for blocks now that its hit FORBES magazine, online, and other financial news outlets.
Who is whispering in [ God Forbid ! ] JIM CRAMERS ears?? Look out Planet Earth, I think the CHROME FARM is gaining orbital escape velocity..........

INFORMED & AWARE

are the terms I would apply to the most recent Poll Respondents.

Basically their choice for NEXT BIDDER in the "RING" would be Xstrata.

Of the respondents 74% were either NOT OPPOSED or undecided to holding a MAJOR's shares

In descending order of likliehood, the responders felt that KWG, then SPIDER, then NORONT, to get the NEXT BID.

As to stockholders, about 3/4 of the responders owned FREEWEST & NORONT.

Lots of unverified information flying around today about the "BIG THING", but as
informed and aware as savvy "RING" speculators and investors, the stock that seems to have been playing "Dark Horse" to FREEWEST has been PROBE MINES [PRB.v].

The chart shows Probe's movment and volume quite clearly, and the black dotted line is FREEWEST, and it is CLEAR that Probe is a perfect mimic or proxy for FREEWEST's movements. As a technical analyst, I cant say I know what to exactly make of it, except that for over two weeks, starting from about November 13th.

Even before Nov 13, PROBE has been giving off vibes that "something" is going on with it, and has been on radar probably since it started talking about doing RR in the Northern Ontario.

If you go to Probe's site you see at this link:

http://www.probemines.com/s/McFauld.asp

you get a view of Probe's property position and what is most striking is Probe's JV property with NOT between the FREEWEST Properties of BLACK LABEL, BLACK THOR and BIG DADDY Chrome properties. Reading the descriptions, we find PROBE fully involved in the "RING". That only partially explains the mimic or shadowing of FREEWEST's price. Much as I'd like to know more, I know someone out there knows. They are voting with their dollars. Actually not knowing helps me a lot more, forcing me to
concentrate more on the nuances and squiggles of each measure of each stock.

In this modern arena, venues like blogs provide a free and quick flow of information.
Please feel free to send me articles to publish. Subject to space and content, I can publish articles that relate to "The RING" for everyone's benefit. The address is "denaliguide2@yahoo.com"

Who is on first? We are on FIRST

For the day in "The RING " it seems as if FREEWEST is the big story. Various have tried to dissect the price of the 2nd NORONT offer. It is for the TOTAL of FREEWEST, no spin off, and a warrant. Seems as it it isnt what the FREEWEST holders want. They seem unenthusiastic, in the light of the fact that more and more funds seem to be positioning themselves in FREEWEST stock. We know those guys dont play for pennies. My guess is they want a quick double or better but they want it quickly.
Another 52 week closing high, and the 2nd highest TSX volume so far. The Chart is CLASSIC, and suggests more to come. So far its still in the first quarter. I dont think we will see the HALF TIME show until well after Christmas. Hey how many Shopping Days 'til Christmas? Twenty-Five Days Shoppers ! ! ! I think FREEWEST may have a nice sack of goodies, in the ROF Chrome Project. How long do you think those boys and girls can wait to get their present, basically all the Chrome the West has ever wanted, in N.America ? A secure supply? A stratetgic secure supply?
A very potentially COMMERCIAL SUPPLY, that could be exported also? HMMM it seems to me that the Goodies are in FREEWEST's sack. I think there will have to be a very NICE BIG PLATE of MILK & COOKIES for SANTA MAC to leave this CHROME PROJECT Present.

I guess if the NICE BIG PLATE of COOKIES arent there, we might have to wait for the EASTER BUNNY ! Who will be SANTA ? Who will get the PRESNT? Maybe it will CLIFFS? XSTRATA?

No matter how you look at it, its a winner and a nice play.

HOLA another OFFER? NPV & Math. TA next post

I am comfortable in thinking that the mining professionals are better informed than others in the arena of the RING of FIRE. I am also more impressed when serious companies put themselves out there for all to see. Working on this knowledge, I then
decided to use some data presented by CLIFFS in their offer for FREEWEST. The data I am using here is what has been presented by CLIFFS with some slight inclusions to assure myself I included most of the other outside possibilities.

I am doing this to check the potential logic and reasonableness of my Preliminary Technical Analysis conclusions. I do so because this process going on NOW in the "RING of FIRE" can seem maddeningly slow and we all want results NOW NOW NOW !

Here is the link for the NPV caculator.

http://www.investopedia.com/calculator/NetPresentValue.aspx?viewed=1

Further my primary idea is that the simpler we keep this, the closer to reality we will end up. I say that meaning we pursue ALL avenues with an eye to simplicity.
We use all Intell and all Evidence, but we use it in its simplest context.

To be fair, and not to guess whether we are in a DEPRESSION, RECOVERY or TEOTWASKI
I used 3 interest rates in the NPV to simulate all three conditions. Five % for depression, 8% for RECOVERY, and 12% for "THE END OF THE WORLD AS WE KNOW IT."

The next input, NUMBER 2 is the life of the mine which is " 30 YEARS".

Intial cost, is the NUMBER 3 input figured at 800 MIL, but I added back the Scientific Wild Donkey Guess for the RAIL at $400 MIL, and "Project CREEP" for $200 MIL. to attempt to give some flex to again what are "Guessimates" based on CLIFF's figure given since they went public with their First offer for FREEWEST.

The next FIVE inputs are simply expected cash flow in the first 5 years, NONE, but since the formula demanded an input, I used 0.01 in the first five slots.

The next FIVE inputs were the expected REVENUE / CASH FLOW from the project, figured at 1.4 BIL per year, current dollars.

All these inputs stay STATIC, Except the Interest Rate. Now using the 8% rate

We get a NET PROJECT VALUE NOW - Now - > now, of 3.84 BIL, after taking out the comprehensive estimated cost of the project. Discount that by 8% to now and the NET, NEt, net Present Value of the project is $2.44 Billion.

THATS THE NPV of all the future dollars in NOW DOLLARS, not share price.

NOW FOR THE MATH. This deposit at this price will assure CLIFFS' dominance over a lot of the stainless market. That is of value to CLIFFS but not figured in here.
We can explore that later. Lets go back to the VALUE of the RING of FIRE Chrome Freewest Project. I don't feel greedy thinking FREEWEST Shareholders should be rewarded for their Risk-Bearing by profiting to the extent of 1 year of profit from the FREEWEST RoF Chrome project.

WHAT IS ONE YEAR'S PROFIT FROM THIS PROJECT? Lets go back to the conference call, when one of the Analysts from the BIGGIES asks CLIFFS what their profit will be from this FREEWEST RoF Chrome Project. So the CLIFFS guy that their COST is : ".... it is in the lowest quartile." WOW, now lets speak ENGLISH. My understanding of the English language and both finance and English are my mother tongues, is that it means the COST is in the LOWEST QUARTER. No doubt many will turn the meaning but if you listened to the teleconf, you now the obvious pride with which that answer is delivered and how happy the analysts were with that answer.

At this point it does not take a "Weatherman to tell which way the wind is blowing"
ala Bob Dylan. The non-verbal message [ " wink and a nod" ] here is that all the parties in that conversation loved that answer.

In brief, if the cost is 25% of the revenue, then what is left is 75%. To me the math is too simple to be ignnored. Seventy-Five percent of the gross annual gross revenue for the project would be NET revenue for the project or 1.05 BILLION.
Lets round off and simply divide the 1 Billion by say, 215 Mil shares of FREEWEST.
BINGO we get $4.65 per share. So far we have used the figures from the most savvy and seasoned professionals out there, CLIFFS. They might not want to invest that much in acquiring the project UNLESS THEY MUST . It IS understood that no one pays more than they must, neither you nor I.
So, if you listened early on in the CLIFFS teleconf you heard them say as I paraphrase THEY WILL TRUMP ANY OTHER OFFER. If you take them at their word, well the conclusion is inescapbable, hold your shares to the end of the process and as yet, there is no end in sight, even the Jan shareholders meeting is NOT an endpoint.

Next post we can look at a bit of TA.

G'Man's contributed Article on Chrome Deposit

This is an article submitted by a FREEWEST Shareholder. His hope is that “RING of FIRE Mining Camp Blog” become a clearning house for FREEWEST shareholders considering the merits of the current offers on the table from CLIFFS RESOURES and NORONT RESOURCES. I think his article contains a lot of basic information important to anyone investing in “The RING”, and so applies widely to others than FREEWEST, NORONT, or CLIFFS. I have editted it for space, but tried to maintain the spirt of his meaning.

“I ask all visiting here who know FWR shareholders to tell them about this site :

http://rof-miningcamp.blogspot.com .”

“....I am not in favor of either offer (yet)[italic's by editor] for my FREEWEST shares...... but I will try to simplify.....”

“CHROMITE -.... seperates within large bodies of magma. The Great Dyke, in souther Rhodesia is
about 550 KM long by 3-10 KM wide. The Kemi Deposits in Finland are a rock 15 KM long by 0.3KM – 2 KM wide.” “....the magma that has chromite, has platinum group metals, some gold, and and nickel, and copper as well as a very small percentage of the total mass.”

“Nickel -Copper “ “....Like oil and water, the Nickel and Copper drop out of the magma solution and get dammed up on the sloping sidewalls of the magma chamber.”

“Chromite... could settle ouot in a gravitational setting near the base of the chamber....
could drop out from silica contaimination as pure crystals.....
selective crystalizaton can put them on walls.....
pressure changes also play a factor.....in placement of crystalization.....

thick layers mean the condition persisted for a long time[forming crystals].....”

“Platinum Group Metals .....also are concentrated in layered intrusions. Narrow one [ 1 ] meter bands ...they go for long distances....” “ There have been some excellent assays of platinum metals in the ROF....” “...KWG did some assays on their cores → here
are the links to their press releases about them:

http://www.kwgresources.com/news/index.php?&content_id=173

http://www.kwgresources.com/news/index.php?&content_id=170

“....Other ROF companies have had interesting results for Platinum Group Metals.”

SUMMARIZING

The Ring of Fire is an area of “Magmatic Segregation Deposits” of : Copper, Nickel, Chromite,
and Platinum Group Minerals.
The known Chromite deposit of FREEWEST on the NE to NORONT on the SW is about
15-20 KM.

Other sulfide deposits have been located in nearby properties, not all from Magma, in the ROF.

The distribution & concentration of Platinum Group Minerals is not yet known now.

What we know NOW;

This might be scientific guesswork, containing errors or omissions but it is herein in the sprit of clarity and information that I write and publish this.

The Chromite deposits of FREEWEST, NORONT & KWG are supposed to be subject to
NI 43-101's published before the end of 2009, but there appears considerable slippage in this date.

CLIFFS RESOURCES accepts as reall 30 years production @ 2 Million tonnes per year for
the FREEWEST Deposit. They show this production into 800K tonnes of Ferro-Chrome for 80 cent
a pound for a REVENUE of 1.4 Billion Dollars per Year from this deposit.
CLIFFS estimates their capital expense [ CAPEX ] at 800 Mil plus 400 for the RR, whomever builds or funds it.”

EDITOR NOTE: In the conference Call CLIFFS did, concering the PROFIT margin in this deposit
one of the CLIFFS officials in the meeting when pressed suggested that at the CURRENT TAKE OUT
price and the Current CAPEX, that from the 1.4BILLION REVENUE, the gross cost of producing that 1.4 Billion revenue would be, and I quote “ IN THE LOWEST QUARTILE”, leaving 1 BILLION or more as NET REVENUE for this deposit.

Part of “G-Man”'s movtivation was to attempt to help FREEWEST stock holders decide what to
do. Here I will upstage him and day, with the current CLIFF's offer rated at costing CLIFF's about
150 Mil.,and say that with the first year's PROFIT rated at about 1 BILLION, the next offers for
FREEWEST's chromite deposit should change by an ORDER OF MAGNITUDE. Given the nature of bidding, the low ball abusive mergers we have seen due to the “Financial Crises”, etc, etc, etc,
ad nausem, the actual bid for FREEWEST's CHROM DEPOSIT should ratchet up to 1 Billion divided by by the total diluted shares of FREEWEST which I estimate at 215 Million. You do the math.

That is if the bidding stays rational. Bidding may end under or over that number. All involved know the mechanic's and behaviours. So far there are six weeks in the next window [ approximately ] to a FREEWEST shareholder vote. If FWR shareholders do the math and come up with 1 BILLION divided by 215 million shares, and come up with a value for the CHROMITE alone at $4.65 @ share,
I dont think the deal will be approved.

Lots of time, plenty of bidders and the action is just heating up as the ground cools down for the winter drilling season in the RING of FIRE. Its getting HOTTER in the RING of FIRE.

Thanks to Anon. from Stockhouse for the quoted article.