Very good points GH...I would like to reitirate my comment of 6 Nov.

I have been around long enough to realized that comments made in public view often have 3 components to them: 1.one of partial truth, 2.one of strategic impact and 3.one of constructive influence. When the opportunity to be fully transparent is not available, then the speaker must make the most of all three components.

In the past four years I have found Frank to be very skillfull in his comments. He often gives enough to project a positive influence on the readers, without necessarily devulging factual projections or plans that would compromize future capabilities. In his statement, there seems to be a hidden message for the Govs who do not seem to grasp the urgency of this situation as well as the reality of the value in the ROF, if only to create a sound bite for the media.

and add the following:

IMHO Frank is playing his cards very smartly. He and his company cannot be perceived as being dependent on the govenment and he is moving forward with what represents the best economic option for his incestors. He has to maintain the position that KWG has an independant plan/option with which to move forward (slurry pipe) but I truly believe that it is not his preferred option nor does he assume that this option would fit with both the Fed Gov and Prov Gov priorities for the following reasons:

1. the slurry pipe does nothing to develop the northern economy, nor does it improve the quality of life for the FNs. There are very few permanent jobs created except in the construction phase. You cannot bring goods and equipement for consumtion and operations through a pipe...you cannot entertain diversity in what could be a blossoming northern economy by building a pipe...you cannot develop the industries of travel, tourism, hunting and fishing by building a pipe.

2. the slurry pipe does not create capabilities for anyone else but KWG. Yes that would be great for KWG's purposes but neither government is concerned about making money for KWG. That outcome has to remain in the effect column not the cause column. The Fed Gov will prioritize economic development for the country, while massaging the Ontario voters by posturing itself as the one who has created all the permanent jobs for the future. The Ont Gov will have to play ball with the Feds because of its financial state going forward but at the same time will have to be seen as contributing to roads, education, training as well as facilitating the logistics of development. (Port Authority not DevCorp).

3. the slurry pipe does nothing to attract deep pockets from around the globe except as it relates to KWG's prosperity. The infrastructure that needs to be built (from the Gov perspective) is one that accomodates cost-effective exponential growth in the future without increase to the environmental impact. Large investors or deep pocket companies will not buy into infrastructure that does not allow them to be in control of their costs; they can allow for fluctuations in the top line, but they have to be able to forecast the costs over a long period going forward;

4. Only the RR is congruent with a)Fed Gov goals for economic prosperity, b)with Ont Gov goals of job creation and permanent infrastructure investment and c) with global attention as it relates to prosperous opportunities in the Ring of Fire, by virtue of its economics, environmental advantages AND its collateral contributions to the quality of life for the FN who live up there as well as for the secondary industries who will greatly benefit from this potential economic engine . You don't build roads to a slurry pipe on-load facility but you do develop a road network that connects to a Rail head;

5. the transfer of financial burden (capital risk) cannot be achieved with a slurry pipe given that it accomodates only one commodity and 2 or 3 companies who would be mining it. The only way to create WEALTH is to create the opportunity for predictable and significant growth both in functional capabilties relative to the initial capital investment. The ROF itself could secure the CPP and the Ont Supplemental Pension Plan for years to come if you allow them and others (ex:OMERS etc...) the opportunity to invest in rail bonds, green bonds or even in the companies themselves who would most certainly experience exponential growthfor many years to come as more mines get developped and more volume gets shipped on the RR.

IMHO Frank is doing a very astute job of developping a realistic and plausible vision, executing strategic decisions, negotiating with potential investors and walking the political/media line while maintaining the confidence of KWG investors. He in fact is probably laying the ground work for the future of the ROF after having defended it from idiots and cartoon characters who tried to portay themselves as viable custodians of this project but in reality were mindless sharlitans who had nothing else but their own interests at heart.

He has also done a great job of generating interest from deep pockets without which the ROF would be hard pressed to make a viable case for itself, notwithstanding that the Govs would have to explain why they dropped the ball on such a nation-building project. In his last interview, I am glad that Frank skillfully brought the Govs back into the picture; I say this because I truly believe that if Frank was to declare a significant move towards building the slurry pipe, the Ont Gov would play its "public interest trump card" and not allow it. Conversely, this would almost assuredly force the Ont Gov. to declare which option IS IN THE PUBLIC INTEREST. (wink! wink! Railroad).

We can only speculate why they haven't revealed the Deloitte report yet, but I think a sub plot is developping as we speak. Let's face it...the only reason that the Ont Attorney General requested leave to intervene at the hearing, was to obtain veto power for the Liberals and Mi(ni)ster Goofy and as such insure that they untimately would decide what was going to be built on the esker. Thank goodness the Commodity Gods saw fit to shift the winds of iron ore, and take Cliffs ut of the picture, otherwise we would be faced with AN EVEN MORE POMPOUS GOOFY GRAVELLE (IF THAT'S POSSIBLE) touting his exploits of building a private road for the fiancial gain of an american company.

The fact that Cliffs has now done a 180 degree turn with respect to the road vs RR issue, tells me that they a) want to maximize the value of their assets in order to seell them at a higher price, b) they want to clear the road for Govs to take the same position, again to increase the value of their assets and c) they need to do whatever it takes (desperation) even if it means contradicting themselves and their three year legal battle to obtain the easement under the guise of wanting to build a road.

I truly think that we are approaching the day of reckoning for many entities who have not been honest in their dealings nor have they honestly prioritized the ethical develpment of the ROF. It is my assumption that Cliffs bought in with the intention/expectation of forcing KWG out at some point but greater economic forces bared Cliffs' vulnaribilities, their lack of insight and due diligence. Poetic Justice!

JMHO....Good luck to all KWG longs

Le Penseur