In the Micon Report, they mention ISM can open pit on both the L-1 and L-2 properties. I have no concern regarding what ISM can do with the L-1, but the L-2 is a different story. Considering LBE owns the properties directly adjacent both west and south of the major part of the drilling results of L-2’s Micon Resource Report; and the Nighthawk Lake boundary is adjacent on the Eastern boundary of the ISM claim, it is my opinion there very well could be problems with ISM getting at the full resource without possible encroachment.
The concern has been brought up many times over the years, yet I don’t think fully answered. In a previous AIF, the company said they could Open Pit on the L-2 to two hundred meters within their current property boundaries. When that statement was challenged, ISM then had to make “restatements” in the AIF. The above 200 meter statement was then deleted with no further explanation from the company why this was done.
There is only a limited amount of meters across the small ISM claim that holds the major portion of the Resource defined in L-2. It is easy to work out what those meters are. With LBE’s property lines both West and South of this claim and the Nighthawk Lake Boundary on the East, it is my opinion that ISM will have a very difficult time centering the Pit over the ore body to get the maximum extractability of the full % of the Resource without encroachment or at least loosing a potion of that resource. That is not to say deals cannot be worked out, but it is a major concern for some that have an investment in ISM and they should have the reassurance from management there is no issues here. It should be an easy question for ISM management to answer now that they have had many years working on this property.
Is the set back of property boundaries 6 meters or 60 meters due to the underground workings in the area of both properties? How wide will the road allowance have to be around the pit including the berm? How many meters across at the top of the pit will it have to be, if one is going down on a slope to two hundred meters deep. This small property will have much overburden to remove. How far away will this material have to be hauled to leave room to work the pit if ISM is squeezed by others boundary lines?
The real issue is; can ISM center a two hundred meter Pit over the resource within its current boundaries without encroachment. Any portion or (%) of the Resource that may be left out because of this problem could greatly affect the financial viability to extract.
Can management be questioned to give a 100% certainty ISM can center the pit to take 100% of the resource in a two hundred meter pit without encroaching on others property boundaries? This is a question I think would be appropriate to ask at the AGM and I would ask that it be included on the list.
Best
Nickel77
