Chatted with Bruce Hodgman (Communications Director for KWG) this morning. He's a nice dude and likes to talk with shareholders. Don't hesitate to call him if you have questions.

I must admit that when KWG was solely about diamonds, I wasn't interested in the company. I think I made that evident in some of my postings. However, from what I am hearing, this company (rather ironically) might be 'the diamond in the rough' when it comes to McFaulds. So I've scooped up more shares this morning.

Frank Smeenk is a different kind of CEO. He's a lawyer not a geologist. (Both types seem to be needed at the ROF.) As one of my friends through Agoracom has stated, "KWG is a proxy for Cliffs Natural Resources". But this is good.

Frank is aggressive, and he has a reason to be so (IMHO). It's all about Cliffs.

Cliffs wants the chromite. They already believe that there is an economically feasible chromite mine opportunity at the ROF. Moreover, they have all of their N.A. customers on the 'back-end' of their 'mining game plan'. (They are also chatting with potential customers in Europe and Asia.) All they need is a railway and a refinery. They could fund both.

But if you look at their 'product list' (includes iron ore), they do not have chromite. Bruce Hodgman stated that Cliffs wants to add chromite to that list. With a mine, which would have a product life of 100+ years, they are taking concrete steps to make it a reality.

A few more points:

a) Bruce is chatting with railway analysts about the exciting potential for a brand new railway in Northern Ontario

b) KWG's application for a TSX listing has been given a verbal "Go" by the TSX; KWG's board of directors will review the TSX's response at a board meeting in the Fall

c) KWG has suggested to the Toronto Resource Investment Conference (Cambridge) that there be an area set aside for Ring of Fire companies (KWG is already beside FWR); an interesting marketing opportunity.

Hope this stuff has been useful.

Snug