BARRIE (miningweekly.com) - Canada's bustling Ring of Fire mining camp is still in its infancy, and the big discoveries there are yet to be unearthed, the CEO of Toronto-based Noront Resources said on Thursday.

“It's still a very early stage exploration camp and the major discoveries are still to be found,” CEO Wes Hanson said in an interview.

Noront was exploring for nickel, platinum and palladium at its Eagle's Nest project in North Eastern Ontario, and hoped to complete a feasibility study on the project in the second half of next year.

Should the study prove positive, construction would begin in 2012, with first production coming in three to five years, Hanson told Mining Weekly Online.

He said the biggest unknowns that would determine when the a mine might start producing at Eagle's Nest were permitting and the ability of capital markets to fund development.

“These days it's [the financial market] not looking too rosy,” remarked Hanson, despite confidence having improved significantly since last year.

Noront has budgeted C$20-million for exploration until March next year, at which point it would probably need to approach the market for further funding.

The company has already raised $45-million in recent months to pay for its exploration programmes.

Eagle's Nest is primarily a nickel project, which at current economics would account for around 70% of revenues. Platinum and palladium would make up for 20% to 25% of sales.

MAJOR MINER

Noront has the ambitious objective of becoming “the next major miner in Canada”.

That is the long-term goal. Eagles nest is a very valuable asset. It could be the start of next major mining company.

“That is the long-term goal. Eagle's Nest is a very valuable asset...and it could be the start of the next major mining company.”

The project boasts an indicated resource of 6,9-million tons at 2% nickel, 0,95% copper and 4,7 g/t of platinum and palladium.

According to Noront, the nickel grades it has identified so far are higher than both Xstrata's and Vale's Sudbury operations, but slightly lower than Thompson and Voiseys Bay.

CORPORATE ACTIVITY

The past few months have seen a number of corporate buyouts of companies operating in the Ring of Fire.

This week, US firm Cliffs Natural Resources said it owned 82% of Spider Resources, which had earlier broken off a merger agreement with KWG Resources.

Noront itself last year had to back down from a bid for Freewest Resources Canada, also operating in the McFauld's lake area, after Cliffs offered Freewest shareholders more money.

Hanson said there was “absolutely” more room for consolidation in the Ring of Fire.

“There are always opportunities for consolidation - we're always looking for opportunities,” he noted.

“I think in the future you'll see a little more consolidation. It's going to hinge on exploration success.”

Noront touts itself as a leader in the Ring of Fire, saying it has assembled the largest drill hole database for the area.

The Ring of Fire has generated much excitement as an alternative source of platinum-group metals and chrome to South Africa.

But Hanson said it would be hard for the region to compete with established chrome producers: “It is going to be difficult to rival that.”

Noront was trading up 6% on the TSX Venture Exchange on Thursday at C$1,05 a share.

The company has a market capitalisation of just under C$200-million.