Do we still believe the East West option is dead?
posted on
Feb 24, 2013 02:47PM
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)
Re-reading some of the early discussions around Noront's proposed E/W road option, and the support it had amoung both northern mayors and aboriginal communities I began thinking today about what has changed in the broader scope of considerations.
The following appeared in the Thnder Bay Newswatch
tnnewswatch Feb 21st (in response to the KWG study induicating rail is a cheaper option)
Noront Resources Ltd. Chief Operating Officer Paul Semple heard about the study but hadn’t had a chance to look it over before tbnewswatch.com contacted him Thursday afternoon.
Semple believes a road is a better option for them since the company is looking at developing a mining camp and not just a single mine.
“Our first project is Eagles Nest,” he said.
“We’re not talking about shipping of three million tons of concentrate. We’re talking about 150,000 tons. We saw the evolution of the camp like every other camp in Northwestern Ontario it would start with roads. As other developments come to fruition, maybe on a larger scale then you would probably justify a rail line at some point in time. We just didn’t think it was necessarily today.”
Paul Semple is subtle but still committed to the E/W option being the best in the short term. (self serving but probably still true)
It seems to me that if I were a Ontario or Federal bureacrat, I would be re-examining the option of upgrading the winter road (E/W route) that could cost only $400M vs north of a billion for a N/S road that could get mired in legal issues (do you expropriate KWG's interests) and environmental assessments. If the region eventually needs a rail let economic drivers determine the outcome.