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http://nbbusinessjournal.canadaeast.com/journal/article/1344098

Ontario mining firm touts metal discovery in making pitch to New Brunswick investors

A Mount Allison University graduate whose firm that discovered deposits of the mineral needed to make stainless steel spent Wednesday morning meeting with New Brunswick business leaders to see who may want in on the development.

Photo: Keith Minchin/For the Telegraph Journal

Wes Hanson, CEO and President, Noront Resources Ltd.

"The chromite discovery could potentially be one of the biggest chromite discoveries in the world," said Wes Hanson, the president and CEO of the Toronto-based Noront Resources Ltd. (TSX Venture: NOT).

On Wednesday, Hanson made his New Brunswick stop on an Atlantic Canadian tour to introduce companies and investors to his organization and the mineral resources it hopes to develop.

Hanson gave a breakfast presentation to about 30 business owners and investors in Moncton, and was scheduled to meet with government officials and Aboriginal leaders later in the afternoon. Hanson is originally from Cape Breton, and completed a degree in geology at Mount A.

About three years ago, the Noront began exploring potential deposits on land it control in a mining exploration area in northern Ontario called the Ring of Fire, about 600 kilometres north of Thunder Bay.

While conducting exploratory drilling in the area, Noront discovered nickle-copper sulfide deposits. The nickle content of the deposits are of a higher value than those at Newfoundland and Labrador's Voisey's Bay development, said Hanson.

The firm also discovered deposits of chromite, a mineral that is essential in the development of stainless steel. There are currently no operations in the Americans that extract the chromite mineral, said Hanson.

"We believe that we can start development in the Ring of Fire based on our nickel discoveries, and then perhaps used the cash from that to develop the chromite discoveries at a later stage," said Hanson.

Any mine operations, however, won't begin until at least 2016, said Hanson.

He said the purpose of his Atlantic tour is to establish who may be interested in the opportunity to further develop the mining site and the infrastructure around it, said Hanson. He did, however, point to the diamond drilling industry as a potential partner.

There is an extensive amount of drilling work that needs to be completed between now and the actual operation of the mine, said Hanson, which these firms could assist with.

Marc Lalonde, a partner of Benchmark Investment Consulting who attended Wednesday morning's presentation, also noted the potential for the diamond drilling industry's involvement, considering that the Moncton-based Major Drilling Corp. is considered one of the top firms in the world.

While the mine itself will be in Ontario, the project can still be a cost-effective economic driver for New Brunswick, said Lalonde. For example, there are many business and employees who travel west to Alberta, but continue to be residents of New Brunswick and pay taxes to the province.

"To go half-way into central Canada is certainly viable," said Lalonde.

The morning's presentation also explained the company's commitment to partnering with aboriginal firms to develop the mine and the infrastructure around it. Bill Belliveau, who sits on the board of the New Brunswick First Nations and Business Liaison Group, said the fact that the actual establishment of the mine is several years away is beneficial, as it gives the community time to take a "real shot" at the out-of-province opportunity.

"Anything that provides opportunity and motivates people to complete their education and to get involved with business and start a business themselves - it's got to be helpful in the long term," said Belliveau.