HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: 43-101 Airstrip / Railway or Road

I have posted several references to Thompson Manitoba, as a comparison to what we have here at Mcfaulds. In the case of Thompson, they did proceed first with the railroad, with the roadf coming 4/5 years later. There were several reasonsfor this that don't apply here though.

There were existing rail facilities within 70 km of the site, while there was no road within 200 km. There was no particular need to provide service to other localities except Thompson itself. The natural best way to serve a mining camp would be rail on acct of the heavy tonnage required both to construct the facility and to remove the end product, so it was an easy decision. They built the railway first.

Although the same would apply here that a railway would provide the best way to bring in equpt and remove the end product, it is not feasible. We are talking about 400 km of rail line that would serve one location. That would be a huge undertaking.To get government assistance here there will have to be a demonstrated benefit to the whole area. That can only be accomplished with a road. This road will either have many branches to the different communities or will be a lengthy road that winds thru several of them.

The year round airstrip they are planning is an absolute necessity if there is to be further development in the area. The present cost of supplying Mcfaulds has to be huge, and this cost could be drastically reduced with larger aircraft that would come with a proper airstrip.

Regards

K

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