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Express 2007-07
September 19, 2007
A quick note on this morning's Noront news
After long trading halt delay Noront reported only one additional piece of information this morning, namely that the 36 metre interval in hole #1 of the Double Eagle project which graded 1.84% nickel and 1.53% copper also grades 1.04 g/t platinum, 2.87 g/t palladium and 0.127 g/t gold. This adds about $77 rock value to the $642 rock value attributable to nickel and copper at $13/lb and $3.40 per lb. It is significant because it signals that this system is capable of simulatenously elevated base metal and PGM grades. The McFauld's Lake stocks sold off sharply this morning in what was clearly an over-reaction because nothing has really changed, and they have since bounced back. My guess is that the market thought inside information about nickel-copper grades from holes #2 and #5, which based on proximity to hole #1 and a visual assessment that nickel and copper sulphides are more massive in these holes, had been leaked. No assays appear to have been received from the lab which is backed up. My view is that when they arrive they will be better than hole #1, so the logic behind the excitement remains intact. What is still unclear is the volumetric scale of this discovery, which is the key to whether or not it qualifies as having world class potential and justifying a Great Canadian Area Play. Noront is now drilling hole #6 at an angle near the vertical #5 hole in an effort to determine the true width and orientation of this system. Expect these juniors to remain volatile over the next few weeks. MacDonald and Temex (TME-V) have announced acquisition of a substantial land position in the McFauld's Lake area through joint venture staking under Bruce Durham's direction. Some of this staking is quite a distance from the discovery, so some geologists clearly are seeing broad regional implications for the existence of magmatic style mineralization.
All my earlier comments remain unchanged
*JK does not own shares in any of the securities mentioned herein
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