SHN sherlock bay nickel corporation limited

bankable feasability study(bfs)status 30/03/04

  1. 4,892 Posts.
    Wow what a wicked announcement it was yesterday by Sherlock Nickel Bay Corporation Limited (SBNC). Would have installed a lot of confidence in its shareholders.

    "The current phase of the drilling program designed to assist in pit definition and design was unable to be recommenced in late January as originally planned."

    So What? I thought SBNC thought that they had a mine. This was the reason for raising $2,047,500.00 to fund ongoing work associated with the BFS on the Sherlock Bay Nickel Project. SBNC placed 31,500,000 shares at 6.5 cents per share to clients of Transocean Securites Limited and Montagu Stockbrokers Pty Ltd, announced to the market on 15/10/03. One would of thought that SBNC would have had enough data already at hand for a mining contractor to come in and give SBNC an estimate of cost and viability. I personally find this emphasis on a bit more drilling for the BFS a bit strange. I sense a rat. I may be wrong, I am not a mining professional. But I do know that the mining professionals that I have spoken to are still to be convinced that SBNC can get this off the ground and make anywhere near the 20 to 30 million dollars per year as suggested in a recent research report put out by Montagu Stockbroking Pty Ltd. And who is paying for these delays? Shareholders, I presume. Another capital raising and further dilution of the stock, as if there isn't enough already.

    "Project negotiations are progressing in a sastisfactory manner in a range of areas including Native Title compensation agreements and project off-take agreements." What, no rain?

    No mention of the original NOTICE OF INTENT (NOI) that was withdrawn from the Dept. of Industry and Resources on the 05/03/04. Why? I would have thought all shareholders would have had a right to know about how this application was progressing. These withdrawals of NOI occur by mining companies all the time. What's the drama? Without an approved NOI, SBNC can't even begin to mine. These things can tend to drag out but from what I have been told by the Dept. of Industry and Resources a lot depends on the strength and thoroughness of the application for NOI. So the onus is now back on SBNC.
    And offtake agreements, for goodness sake, we're told by SBNC that they still have to do more drilling for the BFS. There still may not be a mine. All getting a bit too weird for me. I'm still trying to determine my next buy level of entry, if at all. Been through a similiar situation in the past and it ended up all turning to sh*t.
    One has to be realistic, do their own research and find out as much as they can themselves, otherwise they might get caught up in the Bullsh*t of it all and eventually not be able to get out. This is just my opinion, you can make up your own mind...

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