Friday 9th December 2016

Resource Clips


Posts tagged ‘ring of fire’

KWG Resources president Frank Smeenk emphasizes the need for Ring of Fire community support

September 20th, 2016

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A critic bemoans bikini-clad Theresa and Ashley promoting the Ring of Fire for KWG Resources

September 7th, 2016

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The optimistic route

August 26th, 2016

As one Ring of Fire road study disappoints proponents, another surfaces

by Greg Klein

A 2013 expression of Ring of Fire optimism now sounds dispiriting: “With the support of the critical parties, planning and permitting for the main all-weather access road could be completed in 2014, and actual construction operations could commence in 2015.” That was the conclusion of a study commissioned by KWG Resources CSE:KWG three years ago but not published until August 26.

The company posted the 18-page “preliminary scoping exercise” on its website four days after CBC reported that a federally and provincially funded study on the same subject had been completed but not released. Although anticipated to herald a breakthrough, that study simply called for more study, the network stated. Moreover the report didn’t even consider a route to the proposed mining region, focusing only on connecting four native bands with a highway.

As one Ring of Fire road study disappoints proponents, another surfaces

Warmer temperatures make winter roads increasingly
unreliable, according to a KWG-commissioned study.

Release of the $785,000 report would be up to the four communities that led it, Ontario mines minister Michael Gravelle told the CBC. The network somehow obtained a copy but quoted only a few short excerpts. KWG president Frank Smeenk tells ResourceClips.com he wanted to counter disappointment with “an alternative that is feasible, financeable and attractive.”

KWG’s study estimated the cost of connecting its proposed north-south rail line with an existing road near Pickle Lake, about 305 kilometres west, between $83.6 million and $99.9 million. Trunk roads to four reserves would add another $36.1 million to $73.1 million. The four communities total roughly 2,500 people, according to numbers then available to the researchers.

The study didn’t consider expenses related to potential cultural or archaeological surveys, or the environmental assessment.

As for the region’s existing winter road, access “appears … increasingly unreliable as a consequence of warmer winter temperatures.”

Socio-economic benefits would include training and employment, as well as easier access to health care, police, schools and social services. The road would lower shipping and personal travel costs. Economic spinoffs could encourage growth in forestry and tourism, along with industrial, mechanical, transportation, commercial, financial and legal sectors, according to the study.

It was conducted by GreenForest Management, a Thunder Bay-based firm whose previous work included planning, construction and maintenance of 700 kilometres of all-weather roads north of Sioux Lookout and of 360 kilometres of all-weather roads north of Nakina.

Smeenk calls the report, which cost KWG between $25,000 and $35,000, “a good news story” that counters disappointment in the government-funded study.

While a proponent of a north-south railway, Smeenk says year-round east-west road access will be “a necessary ingredient to building the rail, which in turn is a necessary ingredient to creating a mining camp at the Ring of Fire.” A railway would be necessary to develop chromite deposits, the company argues.

But Noront Resources TSXV:NOT proposes to develop its Eagle’s Nest nickel-copper-PGE project first, using an east-west road. That company holds about 75% of the region’s claims, having closed a 75% acquisition of MacDonald Mines Exploration’s (TSXV:BMK) RoF properties this week. Noront holds 70% of the Big Daddy chromite deposit and 85% of the McFaulds copper-zinc deposits. Noront is also KWG’s largest shareholder.

KWG holds 30% of Big Daddy, an 80% option on the Koper Lake project/Black Horse chromite deposit and 15% of McFaulds.

KWG has an agreement with China Railway First Survey and Design Institute Group to conduct a feasibility study on a link to a Canadian National Railway TSX:CNR line 340 kilometres south. China Railway expects to add that to the Ring of Fire library by year-end.

News of the government-funded study prompted opposition politicians to criticize the federal and provincial Liberals. But the proposals seem mired in the duty to consult. On August 25 the Globe and Mail stated it obtained that report’s three-page conclusion. “Some of the unresolved issues include who would own and manage the roads and how the new road connections would affect social assistance payments,” the paper stated. “Some social programs pay more to residents of remote fly-in communities.”

Late August 26 the G&M said it now had the entire 147-page final report, which estimated road-building costs between $264 million and $559 million. “Among the positives, people said road access would make it easier for parents to visit children who must move away to attend high school,” the story noted. “Cheaper food and other goods from the south are also viewed as a benefit, along with new links between first nations communities. Common concerns were that a road could bring more hunters from the south, which could negatively affect trap lines and other traditional hunting practices. Many fear that more drugs and alcohol could reach the communities.”

Clearly nothing is going to be built in that part of Canada without social licence.—Frank Smeenk,
president of KWG Resources

While emphasizing the positive, Smeenk seems resigned to slow progress. “Clearly nothing is going to be built in that part of Canada without social licence,” he emphasizes. “We’ve flown a number of trial balloons on how that might best be accomplished. The best is that the first nations whose traditional territories will be traversed by this transportation infrastructure should be equal partners in it. So we’ve proposed to the first nations of Webequie and Marten Falls that we create an equal partnership in both the mine and transportation.”

In June KWG announced that chiefs of those bands were considering a proposal to place its mining claims in a limited partnership to be held half by KWG and half by the two communities. To buy their way in, KWG offered the bands a non-recourse loan of $40 million.

This week a Webequie drum group opened a new drill program at Eagle’s Nest “to ensure minimal disturbance to the land and water and for the health and safety of the workers,” Noront stated. The project reached feasibility in 2012. Earlier this month, in apparent expectation of the latest government-funded study, Noront said it “anticipates that mine construction will begin in 2018 when road construction starts, resulting in first concentrate production in 2021.”

Despite pessimistic reports of the government-funded study, Noront reiterated its expectation that Ontario will “make a joint announcement with local first nations regarding plans for a shared regional access road before the end of this year.”

The province has committed $1 billion for RoF infrastructure and has asked Ottawa for matching funds.

Update: Ring of Fire road study stalls as KWG rail study proceeds

August 22nd, 2016

by Greg Klein | August 22, 2016

Hours after KWG Resources CSE:KWG updated its Ring of Fire rail proposal, CBC reported that a highly anticipated government-funded road study simply called for more study. Specifically excluded from its scope, the network added, was a route to the potential mining sites.

CBC obtained a copy of the document entitled All Season Community Road Study, Final Report June 30, 2016 and quoted this excerpt:

KWG’s Ring of Fire rail study proceeds, government road announcement anticipated

KWG looks to China to support its proposed railway.

“This study has always been considered to be focused on an all-season community service road rather than an industrial road to connect to the Ring of Fire mineralized zone. Its intention was always to (1) link the four communities together and (2) link the communities to the existing highway system.”

Release of the federally and provincially funded report had been expected since its scheduled completion in June. Ontario has pledged $1 billion to Ring of Fire infrastructure and asked Ottawa for matching funds.

“This study was going to be the one that was going to give us the road map forward, literally,” the network quoted NDP MP Charlie Angus. “Now it’s just going to be kicked down the road for more delay, more study and more excuses.”

CBC stated that Ontario mines minister Michael Gravelle “said those discussions are ongoing and there is no timeline for coming to definitive answers. The study was led by the First Nations and it’s up to them to release it to the public, he added.”

Besides the report’s disappointing lack of a call to action, news that the study excluded the Ring’s mineral deposits will take many observers by surprise. Noront Resources TSXV:NOT favoured an all-season east-west road that would connect its deposits and four native communities with Highway 599 at Pickle Lake, which leads south to a Canadian National Railway TSX:CNR line at Savant Lake.

KWG maintained that rail would be necessary to develop the region’s chromite assets. Noront countered that its nickel-copper-platinum-palladium deposits should be developed first, pending better market conditions for chromite. A road would be the faster, cheaper option, the company argued. KWG has said Chinese investors have shown interest in a railway.

Hours before CBC posted its exclusive, KWG announced that a “conditional bankable feasibility study” for its proposed railway should be complete by year-end. The company stated it has “agreed on the deliverables and timetable” with China Railway First Survey and Design Institute Group to examine a 340-kilometre north-south route linking its properties with CN at Exton.

Noront’s flagship Eagle’s Nest nickel-copper-PGE project reached feasibility in 2012. In an optimistic news release earlier this month, the company stated it “anticipates that mine construction will begin in 2018 when road construction starts, resulting in first concentrate production in 2021.”

Noront’s other Ring of Fire assets include the Blackbird chromite deposit and the Black Thor and Black Label chromite deposits. Noront and KWG hold 70%/30% respectively of the Big Daddy chromite deposit and 85%/15% of the McFaulds copper-zinc deposits. Noront is KWG’s largest shareholder.

Noront recently signed a definitive agreement to buy a 75% stake in MacDonald Mines Exploration’s (TSXV:BMK) regional properties, increasing Noront’s portfolio to around 75% of the Ring’s staked claims.

KWG also holds an 80% option on the Koper Lake project with its Black Horse chromite deposit.

Both companies have faced recent public criticism. Last week CBC reported the Neskantaga First Nation issued a “cease and desist” order to Noront, after the company announced a drill program. An online video posted by KWG drew widespread censure for its display of bikini-clad women.

KWG Resources promotes Ring of Fire with—harrumph!—women in swimsuits

August 8th, 2016

by Greg Klein | August 8, 2016

President Frank Smeenk had KWG Resources CSE:KWG create a YouTube channel to bring Ontario’s Ring of Fire broader public exposure. But one recent video exposes too much, according to an outraged article on Sudbury.com.

KWG Resources promotes Ring of Fire awareness with—harrumph!—women in swimsuits

KWG boss Frank Smeenk keeps his eyes on target.

“Socially progressive this video is not,” fumed the news site. The offending film opens with “Theresa and Ashley” lounging on a boat somewhere in northern Ontario as they’re about to relate five interesting facts about the Ring of Fire. The next scenes take place on land, allowing the co-hosts to shed their life preservers and display swimsuits as well as some presumably bug dope-covered flesh.

Investors might wonder how much KWG spends on these efforts. But the content and production quality would hardly intimidate the high school students who took part in mining video contests in Ontario and Nova Scotia.

Nor is this the first time anyone’s offered a light-hearted look at the Ring of Fire.

Check out KWG’s five interesting facts but be forewarned: Only slightly suggestive content follows.

March 26th, 2015

Rio dismisses “harebrained” Fortescue iron ore plan NAI 500
The world’s largest gold mints GoldSeek
Cliffs to sell Ring of Fire chromite claims to Noront Stockhouse
Ceramic challenge: Why synthetic proppants have it tough
Industrial Minerals
Philip Richards: Why Goldman Sachs is wrong about commodity prices Equities Canada
Eric Lemieux: Quebec is back, ready for renaissance Streetwise Reports
Great deposits of the world—Hishikari, Japan Geology for Investors

March 25th, 2015

The world’s largest gold mints GoldSeek
Cliffs to sell Ring of Fire chromite claims to Noront Stockhouse
Apple puts batteries at the centre of its EV master plan NAI 500
Ceramic challenge: Why synthetic proppants have it tough
Industrial Minerals
Philip Richards: Why Goldman Sachs is wrong about commodity prices Equities Canada
Eric Lemieux: Quebec is back, ready for renaissance Streetwise Reports
Great deposits of the world—Hishikari, Japan Geology for Investors

March 23rd, 2015

Cliffs to sell Ring of Fire chromite claims to Noront Stockhouse
Apple puts batteries at the centre of its EV master plan NAI 500
Ceramic challenge: Why synthetic proppants have it tough Industrial Minerals
Philip Richards: Why Goldman Sachs is wrong about commodity prices Equities Canada
Eric Lemieux: Quebec is back, ready for renaissance Streetwise Reports
The new London gold fixing GoldSeek
Great deposits of the world—Hishikari, Japan Geology for Investors

January 10th, 2015

Chris Berry identifies commodity companies with the disruptive advantage Streetwise Reports
Lithium-ion batteries looking to store the green revolution, not just drive it Industrial Minerals
Why December dog days might precede new year rally GoldSeek
Tesla to miss 2020 delivery target by 40%, analyst forecasts VantageWire
Evolution of China only means opportunities NAI 500
Putin promises ruble will recover, accuses West of economic sabotage Stockhouse
Why is Ontario’s Ring of Fire on the back burner? Geology for Investors

Economist David Robinson wonders how innovative transportation might improve northern industry and communities

December 23rd, 2014

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