HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

Free
Message: Interesting re Cliff's

I think that NOT is more of a nickel play than chrome. If Cliff indeed gets Freewest and get the infrastructure inn(rail plus power), then it would be critical for NOT to be involved and get rights to use of both rail and power. This in talks with governments and Cliff. It is clearly in Ontario's intererest to get as many new jobs as possible, so they will force (at least try) Cliff's hand.

A nickel concentrate with a nickel grade of 15 to 20 % will have a value of at least 3,000$ per tonne while chrome ore will have a value as low as 1/10 of that at 300$ or so. This means that the tonnage transported for nickel will be much less for the same value.

On the other hand, the electric power consumption will be higher for the nickel processing facilities as compared to a chrome ore mining operation. So for NOT it would be critical to get high power lines with sufficient capacity put in place. Milling to sufficient fine size is pretty energy intensive.

In terms of manpower, more jobs should be created for a nickel mine and concentrator than just a chromite mine. Of course jobs will also be created at any future ferro-chrome smelter, but that will be at a different location closer to Thunder Bay.

I suspect that government aids and support are required and that this will only be provided if the region has the potential to create sufficient jobs, meaning both chrome and nickel mining and processing. In my oppinion chrome along will not carry the day, while if significant enough nickel ore can be found, then that potentially could stand alone.

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