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)

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Message: Re: Questions on chromite shipping

"Does Noront have any plan to slurry pipe chromite to Webeque, as they do with the nickel?"

Two totally different processes involved.

The nickel concentrate is crushed to a powderlike form, and a portion of the waste rock is removed to increase the ratio to the 15-17% range. This powder is then mixed with water to make slurry.

The chrome is in the neighborhood of 35% chrome, and at 2-1 also contains 17.5% iron, making better than 50% mineral as it comes from the ground. It would ideally be shipped in chunk form, with a minimum amount of processing to remove obvious waste.

This does, however, bring up a point that hasn't been discussed much. Noront's game plan involves an expenditure of 25% of the cost of upgrading the winter road route in from Pickle lake. This is based on the assumption that someone else will make an equal contribution, along with the remaining half coming from the two levels of government.

If this someone (CLF) was to contribute to this project, it would do little to serve their requirements, as it only gets the road in to Webequie Junction, and the pipeline concept does nothing for them.

Noront has taken the path of least resistance, as it is environmentally clean, and most likely to get full support of locals. It should allow them to leapfrog ahead of CLF, if things do eventually result in a fight for control of the area in some way. If one accepts the fact that the Ontario Gov't does intend to support the development of the ring of fire, which concept has the most likelihood of support? One that environmentalists accept and first nations want, or one that has the support of neither?

A decision of support for one concept over the other will become increasingly important. It is only reasonable that one entity develop the area, as there is a definate loss of synergy otherwise. A figure of 600mill for Noront has been tossed about here and elsewhere. If CLF did not try that, they could easily expend half that amount in additional expenses through duplication of efforts, and still end up playing second fiddle to NOT.

Best regards

K

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