Ann: Fisher East Scoping Study, page-3

A joke, yacheng? The company paid good money for external consultants to produce the updated Scoping Study. The economics look OK but it is based on JORC resources rather than reserves and so the JORC defined resouces have not yet been assessed as being economic to mine. So this is still an early stage study to give assurance that the exploration activity is worth continuing as potentially economic. The report states that it will be followed by a Pre-Feasibility Study (PFS). The PFS is the next step in the economic assessment process and if things still stack up, then it will be followed by a Definitive Feasibility Study (DFS). The DFS will be based on JORC defined reserves which identifies ore that can be economically mined. The DFS will give a more accurate assessment on both mining and ore processing methods and costs and allows managment to make a rational decision on whether to proceed with a mine. It will identify the capital needed to create and operate a mine and any processing facility.
So, exploration and economic assessment goes through these various stages and takes a good deal of time and effort before there can be any decision to mine and produce. In view of the large sums required, this is appropriate and people would be very concerned if the process was short-circuited wih stages missed out.

In other words, RXL is still at at an early stage with finding deposits of nickel that can be mined at a profit over the life of a mine (or mines). RXL has some JORC defined resources that it is looking to expand through current exploration activity but it needs to turn these resources into reserves which means they can be mined economically, provided the company raises the capital required to construct a mine and processing facilities as well as find buyers of the output.

Mining is both an expensive and extensive activity for a modern and profitable mine to be established. RXL is part way down the track at present and the Scoping Study continues to give grounds that it should continue its activity.