Some excerpts from the MD&A that I found interesting. Go to SEDAR and read the full report, if you get the chance.

Company Overview ...

"KWG has made representations for the Ontario Northland Transportation Commission to assume a leadership role in the creation of this transportation corridor on behalf of all stake-holders. The Company has also recommended to the incumbent Chief of one of the principally affected First Nations communities, a suggested formula through which the area’s indigenous population might be vested with an economic interest in the transportation assets.
CCC and the NSR are owned outright by KWG, as is Debuts Diamonds Inc., a wholly-owned subsidiary into which all the Company’s diamond exploration properties were transferred after the termination of a prior joint venture with Spider Resources Inc. (Spider) covering all their then mutually-held mineral assets (JV). When the JV was terminated the parties agreed to operate programs on their chosen properties independently until the non-operating party’s interest was reduced to 33%. KWG has since operated the MacFadyen Kimberlites and other contiguous interests that are all adjacent to the De Beers Victor Diamond Mine. Spider has since operated the McFaulds East and West VMS project (in which it gave UC Resources the right to earn up to 55%); the Kyle Kimberlites (in which it and KWG gave Renforth Resources the right to earn up to 60%); and, the Wawa diamond project. The Diagnos project was maintained under rotating operatorship on a 50/50 basis, as was the Freewest Option. The Freewest Option agreement enabled KWG and Spider together to earn a majority operating interest in a joint venture to be created with Freewest Resources Canada Inc. (Freewest), upon the option being fully exercised, in a group of contiguous mineral claims located in the “Ring of Fire” area of the James Bay Lowlands of Northern Ontario."

Railroad Route Analysis
Transportation access will be required to support the possible development of a large chromite mine and other properties in the James Bay Lowlands. The construction of a railroad is the most likely avenue to achieve this. The selection of railroad route alternatives, preliminary soil analysis and claim staking was completed during the 4th quarter. The initial terrain analysis by Krech Ojard & Associates, which generated several alternative routes for a railroad, was supplemented by flying a LIDAR survey on a preferred route located on higher ground. The resulting digital terrain model was the basis for creating a geometric alignment, and preliminary hydrology of water crossings. Golder Associates has initiated a geotechnical drilling program on the preferred alignment using two track mounted auger drills and three fly drills supported by four helicopters. Geophysical surveys are being conducted at water crossings. The field component of this program will be completed during the second quarter of 2010, followed by the completion of preliminary design of water crossing structures, preliminary hydrography and hydraulics, preliminary cost estimates and feasibility, and concept level construction schedule. Nuna Logistics has been engaged to develop a potential construction schedule to inform required consultations and such transportation feasibility study as may follow therefrom.

Debuts Diamonds
The Company’s previously announced plan to effect a return of capital to its shareholders by delivery of the shares of Debuts Diamonds Inc, has been frustrated thus far by the inability to provide Debuts Diamonds with adequate capital for its independent undertakings as a reporting issuer with shares listed for trading on a stock exchange. Diamond production was curtailed at the De Beers Victor Mine, adjacent to the Company’s MacFadyen Kimberlites. The curtailment of this diamond production has impacted the Company’s ability to fund the project. It is hoped that a greater interest in the exploration potential of these properties may result from a recently improved diamond market and the resumption of increased production at the Victor Mine.