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: making predictions

It seems just a short time ago (May), when we were predicting infrastructure announcements by the first part of June. Yet here it is mid July, and as some of us expected, we now await September for those same announcements.

The most recent word is that there are three options being kicked around by the companies, but rumors I hear is that there are only two. I have been predicting that the smart move would be to begin with a winter road in from Marten Falls. expanding it to an all season road within a couple of years, and eventually a railroad following basically the same route. My reasoning is that the winter road will allow access for heavy equipment required for site construction as well as roadway, but mainly for the required bridges.

The other idea being circulated is a road in from Pickle Lake, and, having spent a couple of days looking seriously at this possibility, it just may have possibilities.

Firstly, and possibly most important, it will require one large bridge, rather than two. The span will be considerably less than either of the two required from Marten Falls, and it would be located within a few miles of the end of existing road coming part way from Pickle Lake, allowing for immediate start of construction. Although the distance from Pickle to ROF is considerably greater, there is existing roadway for the first good part of it, and deleting the need for bridges can easily make up for extra miles required.

Once you take the time to consider an idea, and start to expand on it, all manner of possibilities can come to the surface. One that hasn't really been discussed in depth here is power, or more percisely "cheap" power, which is what we really need to make this Chrome thing a reality.

Ontario does not have an excess of power, nor the easy ability to produce more. Manitoba, to the west, or Quebec, to the east does, but let's just consider Manitoba.

There are, to my recollection, two or possibly three dams in northern Manitoba, that were built mainly to supply power to the smelters in Flin Flon and Thompson. For discussion purposes, let's just consider the dam at Kelsey. This dam was built in the 1950's for the express purpose of supplying power to the smelter in Thompson, 130 km to the southwest. That smelter is coming out of service in the next five years. Is there a shortage of power in Manitoba where they will be able to absorb this surplus or will it be available for a price?

If Ontario was able to do a deal for this power, where would they utilize it? A transmission line from Kelsey to Thunder bay is approximately 1100km, while that same distance to Pickle Lake would be just over 900. Almost 2/3 of that distance is through northern Ontario and would do wonders to open up the area as well as serve many small communities in it's path, and the remaining distance to the ROF, as well as the final 100km coming into Pickle would be along existing right of way, simplifying construction.

One may scoff at the idea of building a thousand mile transmission line, but there are precedents for it. Consider that BC is very close to announcing the start of construction on their Site C dam near Ft st John, in conjuction with a third transmission line taking this power south to the populated areas of the lower mainland where it is needed. The consideration here is they are going to build the dam, as well as a 1300km line, to satisfy future needs, while what we are talking about is a 1000 km line from an existing dam to supply power that is needed now.

All of the above is interesting thoughts, on a rainy evening, but no matter how interesting and/or feasilble it may seem, it does not take into consideration a railroad. And if we are going to mine chrome, we need a railroad.

Best regards

K

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Jul 13, 2011 02:17AM
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Jul 13, 2011 07:55AM
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