I had a very good talk with Chris Meraw yesterday and it seems that the PDAC show was very successful. The KWG/DDI was booth was well attended with many presenting some very interesting opinions and questions. He and I discussed a number of factors which play into many different possible outcomes...here is one that may have slipped under the radar IMHO.

On this and the SH board many outcomes have been proposed but most of them pit the development of BD juxtaposed against the intented development of BT which CLF has professed on numerous occasions.

It is my firm belief that both deposits will be developped in concert, possibly offset by a few months. In order to create optimal financial returns, both deposits need to contribute to the revenue stream given that they both present advantages that the other doesn't necessarily offer.

To put it simply, I think that ore from BD will be shipped to the smelter to produce the 600,000 tons of Ferrochrome and ore from the BT deposit will be concentrated for direct shipping to the North American market.

The advantages are as follows:

1. the high grade of BD will create as much as 60% savings in hydro power required during the smeltering thus offsetting a portion if not all of the premium cost of Ontario's hydro. This will also create the canadian "value add" jobs that are required by law for all resource extraction companies (processing of resource in situe - different percentages for different resources) as well as provide the quality-of-life opportunites for FN current and future generations.

2. the good but variable grades and the volume of ore of the BT deposits will adequately accomodate the concentation process while optimizing its cost; this concentrate will then be available for direct shipping to the North American markets, through the north / south corridor RR right to connections of the CN and CP rail lines facilitating cross-border delivery. This aspect will also provide job opportunities to FN populations

3. the north/south RR, which will be owned in a PPP (3P) manner, will be operated by FN in cooperation with an existing rail operator. Residuals will be paid to the partners of the "Rail consortium" thus supporting the governments decision to support the RR in these times of economic deficit (both Ont and Fed) and assisting them in passing the Globe and Mail test as it relates to public perception.

I think that CLF has come to the realization that they absolutely need KWG as a partner...they may hate the cost of this partnership, but they have come to realize that this junior company is anything but junior in its knowledge / relationships with FNs, its knowledge and agility around Canadian legal system and economy, as well as its undiniable bargaining position with respect to essential componets of the whole development. (RR, staging area, 4 season landing strip, possible sources of financial support, northern source of aggregate material etc...)

I also think that CLF will eventually take over KWG (on its own or as a subsidiary of a bigger company) but only after KWG has completed its pivotal role in the advancement and developement of this valuable resource. As I have shared before, if Pierre Berton was alive today he would be working on his next best-seller..., the one about a little known exploration company who was able to stave off anhialation, by being visionary in its approach, bold in its strategies, timely in its decisions and considerate of its share-holders and affected populations (FNs).

I sincerely believe that this scenario will play itself out, because IMHO it represents the best possible dstribution of prosperity for all stake-holders (pardon the pun) of this incredible geological anomily. I am really looking forward to going to the KWG take-over party in Toronto, in the nor-to-distant future...

Best of luck to all KWG and DDI longs

Le Penseur