In late 2007 and early 2008, Noront Resources Ltd. was the talk of the junior mining world after its spectacular "Eagle One" nickel-copper discovery in Northern Ontario, in the area that came to be known as the "Ring of Fire."
But by late 2008, the company was making headlines for all the wrong reasons: a collapsing stock price and proxy war that led to the ouster of former chief executive Richard Nemis.
Today, the company claims to be back on track. In an interview at the PDAC, interim co-CEO Paul Parisotto said the company is working hard at delineating its nickel and chromite discoveries in the Ring of Fire and hopes to have a chromite resource firmed up by the end of the year. It would be the first substantial chromite deposit ever found in North America.
Even better, he said that the collapse of the junior mining sector is creating consolidation opportunities for Noront. When the company discovered Eagle One, it triggered a massive staking rush in the Ring of Fire. But now, many of those other juniors that staked ground are running out of cash and have stopped work. As a result, the action in the Ring has slowed considerably.
Mr. Parisotto said: "I think it does create opportunities for us because we're well financed and we've drawn a lot of attention. Other companies that can't raise capital or can't do work creates opportunities for us to look at these companies in the future."
Noront plans to spend $19-million on exploration this year, and will still end the year with about $10-million of allocated working capital. The company is looking for a permanent CEO to replace Mr. Nemis, and Mr. Parisotto said that progress is being made on that front.
