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: Time to build a road to prosperity in the Far North

Time to build a road to prosperity in the Far North

An all-weather road would increase economic development and provide a better quality of life

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August 13, 2013

OTTAWA, ON, Aug 13, 2013/ Troy Media/ – Over the last decade Canadians have become increasingly aware of a number of First Nation communities that have been in serious crisis.

The plight of communities like Attawapiskat, Pikangikum, and Kashechewan are well known in the national media but what is less well known is that they are all in the same region, Northern Ontario.

These communities are three of the approximately 30 First Nation communities in Ontario’s Far North. Most of these communities have much in common and are facing remarkably similar challenges. The Far North – comprising some 42 per cent of Ontario’s landmass (approximately 420,000 square kilometers) – has more in common with the arctic than with the rest of the province. Consider the following:

• it has virtually no community infrastructure;
• there is little access to the hydro grid in the region;
• these communities are dependent on diesel generators for power; and
• the cost of transporting diesel to these communities is staggering and further contributes to air and ground pollution.

For these isolated communities, the main mode of transportation for the provision of goods and services is winter roads. With the changes in climate, the availability of winter roads is reduced; in some years by up to 20 per cent, which means community supplies for the entire year must be hauled north in a two-to-three month window of time. Perishable goods must be flown into these communities by air, making some basic necessities (e.g., milk) four times more expensive than in the south.

To get a better sense of the servicing cost in this area, consider First Nation healthcare. Most communities have a nursing station, but the majority of the region is serviced by the zone hospital in Sioux Lookout, which is responsible for 31 communities in an area larger than France.

Not surprisingly, transportation is one of the largest costs of the healthcare system. Most importantly from a First Nations and a legal perspective, this entire region is a Treaty area, assuring First Nation rights to a traditional livelihood. Treaty 9 (1905-06) covers the majority of the region; a small section in the northwest is covered by Treaty 5 (1908).

Although First Nation lands are under federal jurisdiction, it is important to recognize that Treaty 9 is one of the few Treaty areas where the province is an official signatory. This is an important fact because Crown land south of the 60th parallel (excluding the Yukon, Northwest Territories & Nunavut) is provincial jurisdiction and reserve land is under federal jurisdiction.

First Nation traditional activity often conflicts with provincial surface use of Crown lands. In 2010, the Ontario government passed the Far North Act, as a precursor to the Ring of Fire development. The legislation essentially froze development in half the area north of the 51st parallel.

The bill was widely praised by environmental groups but was bitterly opposed by First Nations. Of the 49 communities that make up Nishnawbe AskiNation (NAN), the political voice of the communities in northern Ontario, only two signed a memorandum of understanding with the province. This brought a sense of disconnect to a relationship once viewed with a new sense of hope.

Throughout Canada, there are many examples to illustrate that First Nations people are not opposed to economic development. They want to build on their economies and be included as equal partners during the process of development. They weigh the long-term cost of development and how it will have a direct impact on their lands and environment. For the communities in Northern Ontario, why would they expect any less?

Since the mid-1970s, this area has been subject to a mining development moratorium. However, that may be about to change. It is reported that the Ring of Fire’s development plan is based on the possibility of 10 new mining projects coming on line over the next 10 to 15 years.

Understandably for most Canadians, the affected First Nation communities would like to have a Joint Review Panel Environmental Assessment (EA) review of the development plan and potential effects on those communities in the region. Again not surprisingly, the local non-native community in Greenstone – the gateway to the Ring of Fire – strongly supports the conduct of an EA review.

What emerges from this development plan and the review process are a variety of business opportunities for First Nation consideration. By way of an example: to develop a mine site will require thousands of truckloads of equipment, supplies and manpower on a year-round basis. Absent all-weather road or rail access, the costs of development become prohibitive and could render the proposed mines uneconomical.

The construction and operation of an all-weather road will certainly improve the economics of most mine projects (and will fatten the provincial royalty wallet when the mines are producing). An all-weather road will also improve the conditions, and reduce the costs of services to the now-isolated First Nation communities.

Is it time to think about building an all-weather road, a road system that would start in Greenstone and head north? A road system is often the precursor to the provision of hydropower and broadband. Those with a business mind will see an opportunity where an all-weather road could be constructed using some variation of a public-private partnership. Those people will also see an opportunity to include the First Nations as part of the ownership of the road during construction and as part of the long-term operations of the road.

Road maintenance and operations may provide new employment opportunities to these communities. Hydro and broadband access will allow the communities to move into the 21st century. For the mine developers, a road becomes available to them on a fee-for-service basis but they will not have the capital costs to manage.

For the province, a road opens up the Ring of Fire for development; a potential boon to the treasury. It gets a road into the north with considerable private sector contributions over time and it becomes the basis for a new and positive relationship with First Nations in the region. Additional roads may follow.

The provision of infrastructure (road, power and broadband) will significantly reduce the cost to service these communities, and removes the hindrance to new investments and economic development, while providing a better quality of life.

Mark Quinn is the President of Quinn Public Affairs, an Ottawa-based government relations firm. In the past, he has served as Chief of Staff and as Senior Advisor for Economic Development to the Minister of Indian Affairs & Northern Development. He also served as Special Assistant to the Deputy Prime Minister and Minister of the Environment. This essay originally appeared in Inside Policy, published by the Macdonald-Laurier Institute. To subscribe to Inside Policy, click http://www.macdonaldlaurier.ca/inside-policy/subscriptions/.

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© Troy Media

http://www.troymedia.com/2013/08/13/time-to-build-a-road-to-prosperity-in-the-far-north/

http://www.republicofmining.com/2013/08/16/time-to-build-a-road-to-prosperity-in-the-far-north-by-mark-quinn-troy-media-august-13-2013/

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