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The way to value Noront right now is:
1. Value of known resources = $250-300MM.
2. What is the upside potential
Geology Upside
AT-12 is 10km from Eagle 1
Eagle 2 is 2 km from Eagle 1
If the sulphide inducing intuit is midpoint between Eagle 1 and AT-12 the potential square km covered is at least 78 sq km.
From what I have been able to deduce from Voisey Bay Discovery we are talking about no more than 2km in each direction or a distance of 12.5 sq km.
If the sulphide inducing intuit is directly under Eagle 1 this would increase the potential km covered to 314 sq km. I think this is the most likely scenario because of the super high concentrations of Ni in this deposit, the massive sulphides are a heavier part of the magma soup and logic would presume the heavier concentrated sulphides would stay closer to their point of origin.
Element needed for massive find:
1. Sulphide inducing intuit (the cauldron) - for base metal separation.
2. Significant magma flow
3. Chambers for massive sulphides to separate from other magma flow and be trapped.
We know 1 and 2 are a definite go. And now number 3 looks more promising than ever.
My point is that we have more than likely 6x the area for finding suitable massive sulphides than Voisey Bay and it could be as high as 25x.
I am at 50/50 on having a 100MT of Massive Sulphides or more (please no heckling - I am serious), and we could be talking upward of 200MT+.
So now we get into what is your risk tolerance and the time value of money. We know at 100MT we are worth $3B. Share price of $18. Right now we are at $1.87, probably the value of known resources. Very low considering upside.
Without risk or time value of money we would be looking at a $9.00 share price. Market doesn't like risk but I think we are worth $3+ prior to assay results.
I think the fun times are just beginning!
