Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Message: CANADA CHROME RAILWAY PROJECT Ring of Fire Smoulderin’ by Edgar J. Lavoie.

CANADA CHROME RAILWAY PROJECT Ring of Fire Smoulderin’ by Edgar J. Lavoie.

posted on Apr 09, 2010 03:45PM

This article has most probably been cited here before but wow, when you look at what Moe Lavigne of Canada Chrome says, it's most interesting to re-read because I'm starting to think about buying into Cliffs too, since all the other mining companies are about to give them the ring of fire. If you can't be beat, join 'em!

The following was published in the Times Star, a community weekly based in Greenstone, Ontario, in January, 2010: CANADA CHROME RAILWAY PROJECT Ring of Fire Smoulderin’ by Edgar J. Lavoie.....

http://www.kwgresources.com/_resources/media/2010-Jan-Canada-Chrome-Railway.pdf

I've just taken parts of the pdf above.

...On Wednesday evening, January 13th, Canada Chrome and Krech Ojard made a presentation to GANRAC – Geraldton Area Natural Resources Advisory Committee. M.J. “Moe” Lavigne, vicepresident/ exploration and development, represented Canada Chrome, and Nels J. Ojard, PE, spoke for the Krech Ojard firm.

Moe Lavigne began by explaining that a railway is necessary to, first, bring in the heavy
equipment to develop a mine, and second, to bring out the ore, in either raw or concentrated form. Once it reaches the CN Rail main line near Nakina, it can be shipped practically anywhere to a smelter.

How big are the chromite discoveries? How rich? “The volume is bigger and richer than
anything else found on the planet,” said Lavigne.

Moe Lavigne of Canada Chrome compared the site to the only chromite mine in the European Union, the Kemi in Northern Finland. The Kemi mine has reserves of 41.1 million (M) tonnes, and additional resources of 86.1 M tonnes. The Big Daddy deposit has, so far, outlined 450 M tonnes.

The Kemi resources described above have grades of 24.5% and 29.1% chromite. The Big Daddy has a grade of approximately 35%.

KWG continues to drill and outline the Big Daddy deposit. Mine infrastructure will include a 150-person camp, a power transmission line, and all-weather airport, and of course, a railway to link up with the CN main line at Exton. Although the chromite ore is extremely rich, Lavigne suggested there may also be a concentration (an enrichment) of some of the ore before shipping.

In the Q&A session after the presentation, Ojard described the proposed railway as a Class 3 heavy-load line, the same class as the CN main line. Lavigne stated that the initial estimate of the railway’s cost is $600 M.

Residents of Greenstone, take note. Once the ore reaches Exton on the new private railway, it can go anywhere in Canada or the United States. Moe Lavigne stressed that the cost of power is a very large consideration in the smelting process. He pointed out
that the X-Strata Copper smelter in Timmins is closing its doors and the Kidd mine ore will be transported to Rouyn-Noranda, Quebec, for processing. He suggested that the cheaper cost of power in Quebec is a big factor.

It is interesting to note there was no suggestion of building a smelter in Thunder Bay District, or using a port nearby.

Look out people, I was in on the Freewest gravy train, hope some of you ride this one too. As always, do your own dd, I own KWG and SPQ and present a biased view!


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