Noront is after the chromite
posted on
Nov 28, 2014 01:42PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
KWG Resources Inc. was served on July 23, 2014 with a notice that Noront Resources Ltd. will appeal to the Mining and Lands Commissioner of Ontario to set aside the finding of the Provincial Mining Recorder that KWG was the first to stake two 16 unit claims when they came open on the morning of June 17, 2011.
The OMLC is still processing the paperwork involved with Noront's action against KWG.
At the same time, "You just need to get a base hit" Allan Coutts, CEO of Noront Resources is actively pushing it's Northern East West (adjusted to appease Marten Falls)' all weather road application to the Ontario government.
This would give Noront a leg up on all the other companies invested in the Ring by precluding a Devco infrastructure decision, allowing them time to develop it's nickel in order to finance their chromite mine and obtain a monopoly. Noront has the backing of an equity ownership group with Baosteel Group, one of China’s largest steel makers.
Fang Li, Chinese consul general in Toronto, who accompanied the premier on her first overseas trip was quoted as saying “Ontario is the most important for China among the provinces of Canada,” adding that the large, but inaccessible chromite and nickel deposits in the James Bay lowlands could lead to a cooperative arrangement between the two countries.
"The demand for the minerals is high in China; we can work together if the necessary infrastructure such as a rail line can be built in this area," Fang said.
Apart from the needed chromite early revenue streams, sparse area aggregate and it's transport to mines and roads in the area, and $10 per ton verses $60 per ton transport costs are reasons why the north south rail should be built in conjunction with an east west service road.
There is no question that a light service east west road should be apart of a Ring of Fire area development plan but the route should be selected to service local first Nations needs while justifying the whole mining area economics and the entire regional development.
What good are comparatively small $10B nickel revenue sharing agreements with First Nations if the $50B chromite is not included in this equation? The Deloitte report on the subject should be completed in time for the Devco's consideration.
Successful Ring of Fire development must supply and deliver chromium concentrate, ferro-chrome, and nickel at the best long term competitive world price and the cost of energy is a key cost component.