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: Ring of Fire development a political winner, but not quite so for mining compani

It is misleading to equate "commodity prices" which have fallen, with chromite or ferrochrome prices, which still remain fairly stable.

A "significant rebound in metal prices is needed" before mining companies commit to investing in iron ore or nickel, prices for which are low, but this doen't apply to chromite. Current prices for chromite, and especially for ferrochrome, are at a level which can make a new mine in the Ring of Fire profitable, and this is especially the case if KWG's reduction process is used. This process saves costs by using natural gas instead of expensive electricity & also by requiring less heat/energy to do the work.

The stars are aligned quite nicely, but journalists have yet to put the whole picture together, it seems.

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