Massive Black Horse Chromite Discovery

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

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Message: Who will mine KWG's chromite?

rj,

Just tracked down a link that reports what CEO of Matawa FN and Coutts said at the North Bay Conference. Link and relevant excerpt below, for info.

http://samssa.ca/ring-fire-round-table-north-bay-mining-week/

Excerpt:"....Achneepineskum says they are more supportive of using roads as it would connect more First Nations communities with all-weather roads.

There are nine First Nations potentially impacted by this mining deposit development and Achneepineskum says, “If the mine is going to go beyond 25-30 years and we see a feasibility of a rail line being put there, certainly that’s something we can look at in the future. But I don’t feel that’s a priority right now.”

Alan Coutts agreed with that point of view.

Coutts is the President and CEO of Noront Resources, which is the main developer in this process.

“The first development we’re looking at is going to be a shared development. So it will support economic development of the mining region, but at the same time brings infrastructure to the First Nations communities.”

Coutts added, “We’re dealing with the Canadian Shield so there are some rocky areas and there’s also some areas that are quite boggy. It’s not unheard of to construct roads over this type of terrain. Northern Alberta, the Oil sands, have numerous roads constructed over similar type of terrain and this is no different. Is it more expensive per kilometer to construct? Absolutely. But that’s part of the process of developing the northern communities.”

If cost isn’t the main issue, timing certainly could be."

Comments:

- It's not surprising to hear that kind of remark from the FN, since mining development of the RoF does not seem to be high on the FN agenda. The main objective is to get modern infrastructure in the FN communities, things like roads, telecommunications, including high speed internet etc...They are looking for government funding for the stuff. There seems to be little consideration for co-existence between mining development and community development, at least on the Ontario side. On the Quebec side, there seems to be a different atmosphere, a spirit of mutual co-operation between all stakeholders, government, FN, industry,...Just look at their Plan Nord and the generous tax incentives from the Quebec government on exploration funding.

- Things are a bit more complicated on the Ontario side. Communities like Attawapiskat (~100km east of De Beers Victor Mine) has the isolation problem (a fly-in community) with ice road connection to Moosonee. A state of emergency was declared not too long ago, but permanent roads have not been embraced by everyone as a solution. The reason: Even the ice rods brought in alcohol and drugs, permanent roads would bring more bad influence from the south, such as alcohol and drugs. So, some folks would just want to preserve the old-fashioned way of life, and keep the environment the way it is, meaning no mining development, i.e. we may just say goodbye to the RoF and leave the stuff (Ni, Cr, and all) in the ground.

- Also, it's no surprise to hear Al Coutt's remark. He has been saying that for years. It's fine for him to advocate NOT EW road, since his main objective is to get the Ni mine going. But he should not forget that NOT has a lot of chromite that would need the RR to transport the bulky chromite out from the RoF. A single prong proposal, the road, the EW road from Pickle to Weberquie Junction (and from there to the Ni mine) does not solve road connection for all FN communities (those on the eastern side, including Marten Falls)

The long-term solution for the industry and the FN community connection would be a network of transportation including the NOT EW road, KWG alternate EW road, the NS RR with a two-way service road. And the planning and discussion should start now, and in parallel, especially if the NS route (RR and service road) is financed by the Chinese (and that would come with the development of the chromite mines, most likely financed by the Chinese as well, ...since they want the chromite).

- May be somebody should have a chat with Al Coutts to remind him that NOT has some 14% stake of KWG, and if KWG is succesful NOT can ride along as well. Co-operation is a good thing.

- BTW, any other stakeholders such as KWG was present at the conference to promote their game plan?

GH

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