Now if the First Nations were give 20 million shares of NOT held in trust untill milestones of feasability...,production decision and production were met... I would bet they would be a lot more co-operative when they see the results of their blocades measured in a real value loss in the shares they hold.....JMHO

They remind me of the young offender that steals cars over and over because there are no consequences for his behovour..... angain JMHO

Noront faces second Marten Falls blockade

2011-02-01 15:48 ET - Street Wire

by Stockwatch Business Reporter

The Marten Falls First Nation is planning to once again blockade the Koper Lake ice landing strip in the Ring of Fire area of Northern Ontario, where Noront Resources Inc. has just begun a 10,000-metre drill program at its McFaulds Lake project. It could not complete the drilling last year because of the Marten Falls and Webequie First Nation blockade which lasted from January to March. Winter is the only time Noront can drill on its McFaulds Lake project's AT-12 target because of wet ground conditions. Investors are undoubtedly awaiting drilling at AT-12, as the company received encouraging assays from there in late 2009. At the time, the stock was trading over $2. It closed today at 79 cents.

Last year Noront's president, Wes Hanson, stopped exploration, claiming the company supported the actions of the blockading Indian tribes. Careful not to ruffle any feathers, he euphemistically called the blockade a "logistics halt" and a "denial of service." On Jan. 25, 2011, Noront received a letter from Marten Falls to "terminate exploration immediately," but unlike last year Noront has chosen to continue with its drill program. Mr. Hanson says this year's "requested work stoppage" comes from a dispute between Marten Falls and KWG Resources Inc./Fancamp Exploration Ltd., and Noront "has more than fulfilled our duties to consult."

Indian demands

Marten Falls Chief Elijah Moonias disagrees. He says there will be another blockade and stresses that last year's blockade demands have not yet been resolved. (Marten Falls wants a negotiator, a geologist, an environmentalist and a lawyer to help determine the value of the area.) On Jan. 26, Chief Moonias told the Wataway News, of Thunder Bay, that his community is concerned about a 40-man camp built on muskeg along Koper Lake. That camp is not being used by Noront, but by KWG and Fancamp. However, Mr. Moonias told Stockwatch that he wants all companies "to leave the area then we will talk with government. Then, we need MOUs and exploration agreements that address the future prior to next phase of exploration." His band, he says, is trying to set up a camp at Koper Lake right away but is having difficulty because "airlines have refused us service because they received threats from Noront business will not come their way if they service the Indians." If the Marten Falls band cannot get help from an airline, Chief Moonias says his band members plan to travel the 130 kilometres to Koper Lake by Ski-Doo in minus 40 degrees.

High costs of doing business

Mr. Hanson is hoping that Marten Falls will consider Noront's consultation efforts and allow the company to continue its drilling. Mr. Hanson would not say how much Noront spends on appeasing the bands, only that, "A significant portion of our corporate budget goes to consulting initiatives."

Part of the corporate budget went to compensating the Marten Falls band for past exploration on what it calls "traditional lands." (Traditional lands are lands on which aboriginals have rights based on their "traditional use and occupation of an area," according to Indian and Northern Affairs Canada. Indians have the rights to hunt, trap and fish on their traditional land, however they do not own the title.) In April, 2009, Noront agreed to retroactively pay Marten Falls for exploration that took place between Aug. 25, 2007, and Dec. 31, 2008. During that time Noront drilled 29 holes comprising 5,382 metres. The company did not disclose monetary details, however chief financial officer Greg Rieveley, says Noront pays about $6 per drill hole and $3 per metre. Using those figures it would have paid Marten Falls at least $16,320. At that time, the company also said it was in discussions for a future agreement. Since then, Noront has drilled another 98,983 uncompensated metres.

Noront also signed a historical compensation agreement with the Webequie band, in June, 2010. That agreement covered past exploration between December, 2009, and June, 2010 (18,253 metres for about $55,000). In addition, the company entered a memorandum of understanding to compensate for future drilling (another 13,144 metres, or about $40,000), and to pay the Webequie $12,500 a month as a consulting fee, beginning January, 2010. To date, it has paid $162,500 in consulting fees.

Although Noront has two historical agreements and one MOU, the company still has not signed an agreement with either of the bands that lays out what it will pay. Even with the help of its five-man First Nations advisory board, the company has only gotten as far as signing a "relationship protocol" to begin joint discussions. Meanwhile, for the six months ended Oct. 31, 2010, Noront attributed $328,000 of its exploration expenses to "First Nations." It also attributes a portion of its general and administrative costs to "donations for First Nations initiatives." For the year ended April 30, 2010, donations came to $141,000.

Noront employs 20 members of the two bands and pays for training. The company has two employees devoted to Indian relations: Chief Glenn Nolan, vice-president of aboriginal affairs, and Leanne Hall, vice-president of human resources. The company even touts Ms. Hall as an "active mother of two Cree children." She helps arrange several local youth programs. Noront gives bursaries to teenagers, sponsors a dramatic arts program and this summer paid for a summer camp to teach the local children about mining. The company says it is concentrating on the youth because they will be adults by the time it reaches the production stage. Noront is trying extremely hard to win the affections of the children, not unlike McDonald's. For the past two Christmases the company has hand delivered one wrapped gift to each child.

Chief Moonias says he is not happy with the arrangements: "These PR programs were thrust to us by Noront, not part of any agreement. If they want to take back their gifts, that's their business to do so. If I [as a giver] brag about my gift, then it no longer is a gift. Gifts are unconditional."

Other companies exploring in the area have also begun extending peace offerings. For example, KWG has invited the chiefs of five nearby bands to join the board of its subsidiary, Canada Chrome. No one has accepted the offer so far, says KWG communications director Bruce Hodgson, they are still digesting the information. Mr. Hodgson says he is aware that Chief Moonias has threatened a blockade, but Marten Falls does not have the support of the surrounding tribes. Also, he says KWG is not worried about a blockade because it has almost finished its winter drill program, which has only a few weeks left. Mr. Hodgson says drilling is not as important to KWG because it has begun the transition from explorer to developer.

Noront is still in the exploration stage and a blockade could prevent it from drilling its prospective AT-12 target for the second year in a row. A blockade also means that the past year of euphemistic language and donation spending was not enought to advance relations between the company and Marten Falls.