Re: KWG Resources Inc.: Black Horse Option Term Extended(spoke to Bruce)
posted on
Mar 14, 2015 02:40PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
OK, my assumption was incorrect, you do realise the road option is uneconomic for chromite.
CLF may have been similarly aware of this, but some Govt people mightn't be. Of course, if CLF could manage to get others to pay for construction, as they hoped, the road becomes more economic for them, and them only.
If CLF and KWG came to an amicable agreement and CLF had begun constructing their private road they would have run out of money by this time, and if the project were still underway, the Ontario taxpayers would now be on the hook for it. CLF would've certainly been locked in to their own exclusive right to use this road, as any use by others might lessen their monopolistic grip on ROF resources. With a lock on the transport corridor they could buy up other chromite deposits in the region at low cost.
There would be no room for a heavy duty road and a railway along the narrow corridor, so once this proposed road was built, the railway would have to be built alongside, but off the high ground, and in the swamp at least part of the distance.
In my personal opinion.