Don, now that Inco and Falconbridge are owned by foreign Companies it is more difficult to know what they are thinking. They think globally not locally.
One thing you can be sure of is that they know more about RoF than we do.
I can understand them being cautious in this economy but what is puzzling is that they would let Cliffs get first dibs on things.
Like Voisy's Bay was, it is very much high stakes poker. Sometimes it is best to keep your cards close to the vest. If you make your move too early it just tells the others what you are prepared to bid.
Remember Inco thought their first low bid for Voisey's would go through unchallenged until Bill James made a counter offer driving up the price. The mining world and Diamond Fields, was shocked. James likely knew that Inco would outbid him eventually but he simply wanted to make sure Inco did not steal it. His strategy worked. Now the $4B price seems like a steal.
What is the value of the minerals proven to date at RoF? Somewhere near $100B US? Noront has been drilling for 3 months now and withholding results. It is a safe bet that they have discovered more chrome, nickel etc. There is lots of drilling to go. Noront will spend $19M this year on drilling.
The point is that whoever wants this had better have deep pockets. IMHO there will not be more cheap selloffs like Cliffs/KWG. Mac told us at PDAC that he will not sell cheap and will continue to drill.
Don, now that the Ont Gov't has laid down the gauntlet, the Feds will not be far behind. Call Minister Gravelle when he is home for the Easter weekend and see what he says.
You told me at PDAC that there is lots of Electric Power capacity at Thunder Bay to supply RoF. That seems to be the logical supply source.
This economic recession has got the Gov't thinking about running deficits to fund infrastructure spending. Looks like this downturn is a blessing in disguise for the RoF.
The First Nations peoples of James Bay lowlands need some roads etc to facilitate supply routes to their Reserves.
The Ontario Action Plan for Northern Development was posted on Agoracom recently. This has been in the planning stages for several years now. This opportunity fits very nicely into that plan and the timing is right.
IMHO the required funding is not far off.
Stay tuned.
SN
