KWG Longs,

Does everyone see the pieces falling together?

1. KWG secured their own chromite deposit in Black Horse and are no longer tied to the Big Daddy joint venture with Cliffs. As I see it, intent would be to mine Black Horse via underground shaft with or without partnership with Noront. I don’t think Cliffs will be able to mine Black Thor open pit as they have planned due to environmental constraints.

2. Successfully defended ownership of the route by having Cliffs’ easement application dismissed. I believe this to be the catalyst for #3 and #4 below.

3. KWG has explored and is now patenting the natural gas method of chromite processing which has been used in South Africa for years. With both cheap and readily available supplies of natural gas available in Canada, this further reduces the cost of processing in Canada and thereby allows KWG to avoid having to ask for electricity rate concessions from the Ontario government as Cliffs is whining about.

4. Last piece of the puzzle is the transportation infrastructure. Based solely on the pieces I see falling into place above, Frank’s track record and my own opinion, I suspect a private deal for transportation is forthcoming. Again, very different than the scenario of Cliffs with their hand out and their mouth open for a publicly funded all weather road.

In the Northern Ontario Business article entitled “Ring of Fire Situation a real Cliffhanger” on October 23, 2013, Bill Boor wonders why the Ontario government is not talking to him: “The company is further frustrated with the pace of negotiations with the Ontario government since the leadership changeover last winter from Dalton McGuinty to Kathleen Wynne. Boor said there have been no meaningful discussions on the issues of power rates, a commitment to mining-related infrastructure, and approval on the terms of reference for the project's environment assessment.”

No kidding they are not talking to you, Cliffs. You are irrelevant.

All the best to KWG Longs,

Keep Digging