Massive Black Horse Chromite Discovery

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

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Message: Re: Cliffs: Opportunity For New Direction towards Real Market Diversification

I base my opinion of a likely cost range for a pipeline on estimates given for a slurry pipeline through mountainous country in British Columbia. Mind you, these are 2008 figures, and for coal slurry. These figures are for 3million tons per year, and for distances between 250kilometres & 555kilometres, depending on route.

                                                                        Pipeline
                                                                        to
                                                                       Hazelton    Pipeline
                                         Pipeline    Pipeline    & Rail to        to
                                            to          to            Prince        Prince
    Item           Scenario:    Stewart     Stewart      Rupert      Rupert
    -------------------------------------------------------------------------
    Route Distance               254 km      254 km       320 km      555 km
    -------------------------------------------------------------------------
    Pipeline Capacity               1.5 Mtpa    3 Mtpa       3 Mtpa      3 Mtpa
    -------------------------------------------------------------------------
               Capital Cost Estimate (millions of 2007 dollars)
    -------------------------------------------------------------------------
    Pipeline                               154         199          219         303
    -------------------------------------------------------------------------
    Service Road                          50          50           28          50
    -------------------------------------------------------------------------
    Briquette Plant, Water
     Treatment & Land                   25          30           30          35
    -------------------------------------------------------------------------
    Rail Loadout                             0           0            10          0
    -------------------------------------------------------------------------
    Stewart Port Improvements       16          29           0           0
    -------------------------------------------------------------------------
    Total Capital Costs                   245         308          287         388
Costs will be higher, simply because it is now 2014, 6 years inflation added, but also because
coal is less abrasive than chromite, so different lining technology will be needed.
Their costs were estimated at around $250 million for just a pipeline & service road over a 320k distance
Here is their site
http://www.newswire.ca/en/story/266049/fortune-minerals-announces-slurry-pipeline-transport-study-results-for-mount-klappan-coal-project
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