Ni and other metals:This Micon report contains a nice pie chart (fig 1.2) that shows the relative values of various metals at NOT Eagle. There is also a table showing the value, in M USD, for each metal above the pie chart.

http://www.norontresources.com/Investors/getDocument/norontTechnicalReport-PreliminaryAssessment.pdf/138

They have gone through the calculations: Ni contributes 75% of the total value, Cu next @10% (surprised?), Pt & Pd @ 8 and 6% respectively, Au@1% and they threw away Ag (@0%).

It's always been my understanding that at Eagle, it's Ni that is the most valuable component of the mix. The slurry pipeline from the mine to Webequie Jct is to carry the concentrates with Ni @10%, so that the volume, and hence the number of trucks required, would be reduced by approx a factor of 6. That would make transportation cost of Ni low.

Chromite:This is more complex, since without the concentrator at site (even the one proposed by CLF for BT mine to bring the grade up would not provide significant "compression" of the volume. The biggest issue for chromite would be to get it out to the smelters located in nearby large centres such as Sudbury. Transportation by rail is the only cost-effective way to handle the bulk, since running monster trucks year round would tear up the roads. Also, one needs to pay attention to the severe weather up in Ontario Far North. The trains are on tracks, but truck drivers need visibility and they would hesitate to drive on slippery roads.

Note: Not sure if it's feasible to carry DSO-quality chromite by pipeline (more abrasive than nickel concentrate?). Also due to the bulk, dewatering and drying chromite ore before put it on the trucks would be more time-consuming/expensive (bigger pipe, pumps, dryer, and electrical power generators).

As I have indicated in some previous posts, NOT proposal is a viable and stand-alone mine, mainly due to the Ni and the ability to "compress" the volume for trucking on a proposed E-W road ($195 M). For CLF, in addition to the RR availability, BT/BD is completely "surrounded" by companies like PRB, FNC, KWG (30% of BD) and NOT. CLF should be prepared to negotiate with those companies to get some access rights for their trucks to get the chromite ores to the RR staging area near Koper Lake.

In summary, unlike Ni, chromite due to the bulk would require train transportation. CLF has indicated it would embrace this proposal, despite all the noise about the $600 M N-S road to carry the ore to staging area for taking it, by CN train, to a smelter (to be built with a price tag of 1.8B) near Sudbury.

goldhunter