GM,

I was thinking along the same line about the "easement" (if CLF won the Appeal) that could bring value to the package that CLF has in the RoF, but I have some other view for this added value.

- It does not look like CLF has any chance to win this Appeal, just based on the "public interest component". The Commissioner has spoken with her judgement based on the law of the land.

It would be a total surprise to me if the AG would come out to say that her application of the law was in error. Even if the application of the law were in error, this would not mean that CLF has the right for the easement to carry out its plan (which was suspended indefinitely) to take the chromite out of the RoF. My guess is that the AG would come out to support the application (not interpretation) of the law (the Mining Act).

As Frank Smeenk has said, and I paraphrase, "This is the frontier, and what you found is your", i.e. CLF cannot just walk in demanding KWG to surrender its claims for CLF to build a private road.

- Goodwill aside, BT is not the only game in the RoF. Now we have BH, BB and perhaps BC withe much higher grades suitable for DSO. Note BT would require an onsite concentrator, and CLF also proposed an elecric arc furnace which would cost $1.8B and require subsidy from the Prov for electricity rates. Overall, this is a much more expensive project to develop and to operate compared to BH/BB/BC and the proposed gas-powered furnace which is cheaper and does not require any government subsidy.

- The study by Deloitte commissioned by the Prov could be a smoke screen so that it would be considered as impartial consclusion from a third party. The RR is known to be the most economical to haul bulk material and other stuff for the benefit of all miners in the area and the PUBLIC, especially the FN communities. Roads, especially private road, would not stand a chance, in addition to to cost of maintenance and the diesel fuel. The hovercraft option is a joke and probably put in there as a throw-away. But why put it in there in the first place (just wondering where all the technical advisers to Minister Gravelle were? Were they the same as those responsible for the $1B fiasco for cancelling gas-fired generating station at Oakville and Mississaga?) It would appear that Deloitte has an easy job, just ask KWG for the report on the rail/road comparison, and refer to it come up with a recommendation for the RR.

- CLF is broke and it will not have $3.3B for RoF development. It could probably use some cash from the sale of the assets in Ontario/RoF. Just have a nice chat with Baosteel, or better still, talk to Frank and he would sort out the sale of 16% of KWG and 41% of BD and perhap BT as well. This could rake in a few hundred $M and a potential to earn 29% from BD without having to run it.

It appears quite simple. Hopefully, the "new" CEO would see it in the same light and come up with a $1M or so to pay for KWG court costs (dropping the Appeal to save some money). If he drags this on, perhaps Casablanca would have a new CEO to simplify CLF headache by divesting the entire international wing, RoF included.

$1M is chump change for that kind of headache (in addition to what would be considered as "bridge burning" with Canada). It's time to grow up.

goldhunter