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: possible solution for transport of chromite/nickel

BB,

To add to your reply to TM, here are some comments:

- Slurry pipes are usually low presure systems and the stuff they carry (Ni and Chromite are not combustibel), hence they are not expected to cause exploasion resulting in great fireballs as in some cases where oil and gas pipeline accidents. Even in some accidents, a fire is a good for burning of the leaked gas/oil, since there are safety mechanisms to stop the flow and to isolate the damaged section. The pipeline companies have sphisticated computer system to monitor the "state of health" of their pipelines 24/7 at their HQs. They also have patrol (on foot/ATV, air survey with helicopter/drones?, and surveillance with satellite technology to have early detection of potential accidents. These guys don't want an accident, since this means losing money big time for them.

- The NS slurry pipe is quite short (some 300km) compared to thousands of km for gas and oil pipelines. So, in the big scheme of thing a 300km line is nothing (NOT original idea had a 100km slurry pipe, so 300km should not be a burden if NOT would factor in the dual use for the same pipe...Ni now, and chromite later. Or, NOT and KWG can put heads together to create some synergy for some mutual benefits (being friends is always better than being enemies).

- Ni and chromite are inert in water. Besides, the time for the concentrates to be in a wet state is short, and at the end of the pipe, almost all the Ni concentrates would be recovered after the dewatering operation (draining/drying). In case of a spill (pipe leak/break) the water in the slurry would be drained out (naturally) and the concetrate would be left behind to be recovered (just like scooping up the stuff from a stockpile at site). Any small amount left behind following a clean-up is not expected to cause any impact on the environment. If required, they can have an industrial vacuum cleaner to suck all the Ni concetrate up.

- Jobs for local people: Just like maintenance of the ice roads, the local people would have a good opportunity to provide security and patrolling services along the pipelines. Perhaps, NOT and KWG should sell this idea to the FNs...a win-win situation.

goldhunter

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