I am not a usual poster on these boards - like reading more than writing (had a C- on essays at school ... you will notice it down below). But to name a few:

KWG holds a 1% net smelter royalty in all three prospects. The planned mine (on other two prospects acquired by Cliff from FWR) is expected to produce 1 million-2 million tones of high-grade chromite ore annually, which will be further processed into 400,000-800,000 tones of ferrochrome. If I am not mistaken the price of ton of chromite ore is between: $215/t (CIF) from South Africa to $360/t CIF from India with Turkey somewhere in the middle. Grades from all three countries are consistent with what's being reported from the drilling @ ROF. KWG gets 1% smelter royalty from anything that gets mined from under the surface. Mind though - ROF is going to be an open pit mining compared to say South African.

Here is a recent article about the ore pricing (March 5th, 2010): http://www.miningweekly.com/article/south-africa-exporting-more-raw-chrome-ore-at-low-prices-2010-03-05)

And here is an article on estimated ore production from two prospects acquired by Cliff as part of the FWR deal: http://www.tradingmarkets.com/print/.site/news/TOP%20STORY/2718168/

As for the price valuation:

1. Now we have: great reports on drilling out on March 5th + Ontario government support + "free" publicity coming up on Global + share prices on the way out of the "penny stock" zone = funds that could not have purchased KWG before because of its "penny stock" status can start buying now.

2. "Someone is hiding in the bushes" factor. FWR was an easy target - no "real" second bidder there - just Cliff (NOT was not a real contender). High volumes in the last 2 (count 3 now) days point to a possible accumulation on behalf of someone big out there. That "big" is "hiding in the bushes" and getting ready to come out of the shade when the offer comes from Cliff to acquire KWG at 0.25-0.30 range. Who this "big" is you may ask? Well - can't tell you for sure but a few names come to mind:

* XSTRATA (huge interests in South Africa) but their biggest customers in North America - sound like a no-brainer to scoop the next possible biggest chromite prospect in the world for pennies

* Chinese state companies - China is the biggest user of chromite ore

And one more thing: National Instrument 43-101 compliant resource estimate was reported to commence on Big Daddy Chromite Deposit. The anticipated date when it is going to become available is: late April - beginning of May 2010. If what we have seen so far from the drilling results translates into a "knock-out" NI 43-101 (or should I rather use "When" instead of "If") we have a new game rules.

And don't forget one more thing: all non-chrome assets will be spin off by Cliff if (when) they get full control over KWG. Yes I am talking about Debut Diamonds.

And ... (sorry for being a pain in you know where) ... did FWR have the rail that is going to be used by each and every company in the ROF? They did not (at least to the best of my knowledge) and KWG does. What's the economic potential - can't tell you for sure - it's not a CN Rail type of operations but I am sure they won't provide free rides to their competitors once the rail is complete.

Thanks for reading this and sorry for taking too much of your time.

Cheers!

Hooligan