Of course we have to take the recent Canada Chrome developments into account when assessing the possible value of FWR chromite in particular. There are two deposits on FWR 100% claims, Black Thor and Black Label, and a deposit, Big Daddy, on ground in which KWG, SPQ and FWR have a joint venture. Recently KWG has announced they are forming a subsidiary, Canada Chrome, which is intended to be the operator for exploitation of the KWG, SPQ and FWR joint venture chromite deposit, together with the FWR 100% owned deposits. Canada Chrome will build and operate a rail line from the McFaulds Lake area (known as the Ring of Fire) to Nakina, where it will join the existing rail network. KWG has a low market capitalisation, so this large scale enterprise seems a bit much for such a small company.

What makes this plausible is the fact that Cliffs, the largest iron ore and coal supplier to the North American steel industry, has taken a 19.9% stake in KWG, and a 9.9% stake in FWR. Cliffs intention, according to a presentation by a KWG representative at the recent Cambridge Resource Conference, is to ship 2.8 million tons of chromite a year by this rail line, to supply a smelter they intend to build, with some high-grade ore shipped overseas at a premium price.

With this news of course the value of the chromite deposits in question immediately can be seen in terms of the current and projected market price for chromite, rather than as essentially of very little value.

Just what that value might be in dollar terms we cant really say for sure, other than estimate a very rough Gross In-ground Value; Since we dont yet have a NI 43-101 resource estimate for any of the chromite deposits in the area, any figures are hypothetical. NI 43-101 compliant resource estimates are being prepared for the Black Thor and Big Daddy deposits, as well as for NOTs chromite. It is thought that the Black Thor deposit alone has enough high grade chromite to supply Cliffs needs as stated, for certainly twenty years, and probably much longer. This particular deposit is very likely to be the first choice for a chromite mine in the area because of consistently high grades and ease of mining - believed to be suited for open pit methods. Over twenty years at 2.8 million tons a year the total would be 56 million tons. Present prices of chromite vary from $350 a ton upwards to over $500 per ton depending on grade. This price could well drop, so I will use the much lower figure of $300 per ton. So a rough calculation gives a gross in ground figure of $16.8 billion, just for the projected requirements of one company, a willing buyer, and for the one deposit alone.

Cliffs is said to be interested in the chromite only, they dont need or want any other of FWRs assets, so a deal for the chromite assets alone is quite possible. This would leave FWR with the Clarence Stream gold project. currently something over 300,000 ozs proven and probable, and hopefully 1 million ozs., as well as several other large projects elsewhere.

As has been said by Glorieux, Not is believed to have perhaps 30 million tons of chromite. Grades are said to be variable, though some very good intercepts have been reported. This deposit is very likely to be equal in value to FWRs Black Label deposit.

With NOTs Eagle1a high value multi metal deposit, NOT has been the leader in the ROF for some time, both in share price and perceived value, while the value of the various other finds in the area has been dismissed due to the lack of infrastructure in the area. Eagle1a has a current gross in-ground valuation of $1.7 billion.

With the planned rail line however we are looking at a brand new outlook for all the ROF exploration companies.

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