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: OK, Here Are The Next Hurdles

In the Goodman file that was reported this AM, it looks like there will be 90 days of debating and required discussion with the concerned parties. Should be a good 3 months and I read it, that this is just a formality in the process. Sounds like this is a done deal for Eagle's Nest.

Approval Process Moving Forward

While Noront has taken a significant step forward by submitting the Report, a number of obstacles lie ahead. Critical next steps to gain approval are:

  • MOE Review - The MOE will review the Report over seven weeks with Aboriginal communities, the public, and government technical staff having an opportunity to comment.
  • Comprehensive Study Report ("CSR") - During the seven-week comment period, the Canadian Environmental Assessment Agency (the "Agency") will prepare a draft CSR, which will provide Aboriginal groups and government technical reviewers an opportunity to comment. The CSR is the report which the Federal Minister of the Environment will ultimately rely on to make a final determination on whether or not to approve the Eagles Nest Project.
  • Ministry Review - At the end of the seven week comment period, the MOE will publish a Ministry Review indicating whether (1) Noront met the EAA requirements; (2) the environmental assessment was prepared in accordance with the approved Terms of Reference (being a work plan for preparing the environmental assessment and satisfying public consultation requirements); and (3) the proposal is in the public interest.
  • Comment Period - After the Ministry Review is published, a five-week period will commence where Aboriginal groups, the public, and government technical reviewers may provide comments.
  • Submitting CSR - The Agency will submit the CSR to the federal Minister of the Environment where the public and Aboriginal groups will have a further opportunity to review and comment.
  • Provincial Determination - The MOE will make a recommendation to the provincial Minister of the Environment which, with the approval of the Ontario Cabinet, may approve the project with or without conditions or refuse the project outright.
  • Federal Determination - The federal Minister of the Environment will either determine that the project (1) will not likely cause significant adverse environmental effects, in which case federal permits and authorizations may be issued; or (2) is likely to cause significant adverse environmental effects, in which case no required permits or authorizations may be issued.

In a time where mining activity in Canada has slowed down, it will be interesting to see how the co-ordinated review process will work with the various stakeholders. Just recently, federal cabinet approved the expansion of Jackpine Mine in Northern Alberta even though the project was found to cause significant adverse environmental effects. Arguably, federal cabinet approved the Jackpine Mine expansion in part because of the economic benefits it would bring to the region, Alberta, and Canada. How federal and provincial levels of government will balance environmental concerns against economic benefits for the Eagles Nest Project is unclear, but will likely be an important factor in the decision-making process.

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