For those that have been around for a while, you may remember discussions about the economics of mining just chrome alone....I think that was back in the FWR days. From the most recent news release, we get this...
"The close proximity of Blackbird to our flagship Eagle’s Nest nickel sulphide deposit offers exceptional synergies as both deposits can be exploited using the same underground infrastructure, limiting the incremental capital cost while minimizing the environmental footprint."
Going forward, it will certainly be interesting to compare the economics of Cliffs plans to that of Noronts.
Other factors involve an east/west corridor vs a north/south. On that front as well, it appears Noront is gaining the upper hand, especially with this recent development....
"First Nations around Ring of Fire pledge to build East-West corridor"
Another consideration is the land package...say between Noront and Cliffs. Again, Noront wins hands down. Lets not forget that at this time we do have other discoveries that have the capacity to grow significantly....and the enormous potential for new discoveries....for which we continue to drill for...
If we take Cliffs out of the picture, Noront's chrome alone is enough to satisfy world demand for some time....and yet there are vast amounts yet to be uncovered.
With respect to the government, I can understand how they would not want to make any concrete decisions about infrastructure that may favor one company over another. So at this time, it is up to the respective companies to battle it out for superiority. In the end though, there could probably really only be one producer of chrome. The economics will decide that.
Now we see this interest by another third party...gaining control of over 10% of the shares. As others have suggested, the timing of exposing themselves now could have some significance.....with both a federal and provincial budget close at hand....and with Noront trippleing their chrome deposit...in close proximity to their flag ship project....while they continue to drill for new discoveries in close proximity.
We could find out soon enough just how much Cliffs is feeling the pressure.
