Many investors may not have heard of naturally occurring stainless steel or nickel-iron alloy.

http://www.fortstjamesnickel.com/i/pdf/CorporatePresentation.pdf

The Company with its exclusive proprietary extraction technology is a World leader looking into commercial production of this nickel-iron alloy although it has been known by academics for well over 100 years.  This mineral occurs in certain ultramafic rocks, which initially formed on the ocean floor in many parts of the World.  These ultramafic deposits typically contain about 0.25 percent nickel, but the nickel was held in the silicate lattice of rock forming minerals and to extract it would not be economic or practical.  However, during subduction of this ultramafic during mountain building the metaphoric process resulted in the breakdown of the original minerals liberating the nickel.  The nickel commonly goes back into new minerals.  However, under very specific conditions, with the right pressure temperature and chemistry, some of the nickel combines with iron to produce awaruite, a natural, stable, high-grade, nickel-iron alloy.

 

As a result of this process the mineral is disseminated, which on occasion can be over very large areas, which is one of the keys for its economic importance.  The grade is such that you can only make a mine that is a bulk tonnage or open pit, or that has low cost-per-tonne-production cost.  It is very similar in this respect to a porphyry molybdenum mine, which are also relatively low value per tonne.  When the extent of the mineralization is such that you can mine plus or minus 50,000 tonnes per day, that�s what makes those mines work.  Our mine would be a direct analogy to these types of mines in that respect.  However, the mineral is very magnetic and quite dense, so separation is by very straightforward magnetic separation followed by a gravity upgrade if warranted.   In this respect they are potentially simpler than porphyry mines that use flotation.

 

Because it has no sulfur, we can potentially sell the product directly to a steel mill.  There is no need to send it to a smelter unlike you would with the flotation product of copper, molybdenum or nickel sulfide deposits.  To separate the nickel from the sulfide takes about 20 percent of the total value.  The lack of sulfur also makes mining much more environmentally friendly.  Sulfur plus rainwater equals acid, virtually every mine has it, there are good engineering ways around it, but it costs money.  We avoid the expense as well, reducing our capital and operating costs.

.