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#RingOfFire (#RoF) News – September 9, 2016

  • Let’s see how much play the Ring of Fire gets in Monday’s Speech from the Throne kicking off the Ontario Legislature’s work once again, starting around noon, shall we?
  • “Ring of Fire could benefit from Laurentian University’s new Metal Earth project — The mineral exploration community is welcoming news of a major mining research project. This week, Laurentian University announced it’s starting a seven-year initiative called Metal Earth.  The goal is to figure out more precisely where ore deposits are, making exploration less costly for companies.  The president of the Sudbury Prospectors and Developers Association, Joshua Bailey, says it’s great to see more than $100-million being spent on mining research.  Bailey, who is also the vice-president of exploration with Wallbridge Mining and the head of the Ontario Prospectors Association, says there hasn’t been a lot of innovation in mineral exploration.  “A lot of the geophysics that we use was technology initially developed during World War 2, you know, looking for submarines and that sort of thing,” says Bailey.  The funding for the Metal Earth project is coming from the federal government, and other partners from academia and industry.  Ryan Weston, the vice-president of exploration at NorOnt expects the new Metal Earth project at Laurentian University to help move the Ring of Fire project forward. (NorOnt)  Noront Resources is one of the mining companies backing the project …” – more from Laurentian here, sudbury.com here, Northern Ontario Business here and the Sudbury Star here
  • More from that announcement Franco-Nevada Corp. chief executive officer and president David Harquail is “absolutely convinced” a mine will be built in the Ring of Fire, but realistic enough to believe it may be a future CEO who benefits from it.  Franco-Nevada loaned Noront Resources Ltd. US$22.5 million last year, at 7 per cent interest for five years. That was in return for a 3 per cent royalty on the Black Thor chromite deposit and a 2 per cent royalty of all Noront’s property in the region with the exception of Eagle’s Nest.  Noront purchased shares of Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc., independently owned subsidiaries of Cliffs Natural Resources, which held mining claims in the Ring of Fire, for US$20 million. The remaining US$2.5 million provided Noront with operating capital.  Harquail attended an event Tuesday at Laurentian University where it was announced his family foundation, the Midas Touch Foundation, was giving $10 million to the university’s earth sciences department …”
  • Back to fighting for a processing facility Five Ontario cities, including four in Northern Ontario, have expressed interest in hosting a ferrochrome smelter for Ring of Fire developer Noront Resources.  “We haven’t excluded any sites yet, but it would be a brownfield site somewhere in Ontario,” said company president-CEO Al Coutts. “That’s our preference.”  outts said they’ve been approached by “a number of parties” from Thunder Bay, Sault Ste. Marie, Timmins, Sudbury and Hamilton.  Factoring into the site selection process, he said, would be the availability of a skilled local workforce, having the electrical infrastructure already in place, and getting the power at the right price.  “I like the concept of having something in Northern Ontario,” said Coutts. “Ultimately it’s going to depend too on what kind of power price agreement we can negotiate with the province.” …”
  • Noront: Ontario SHOULD be good to go soon on RoF infrastructure  “The Ontario government has most of the data it needs to inform a decision on the infrastructure it would be prepared to build and finance in the Ring of Fire, says the head of Noront Resources Inc.  The Ministry of Northern Development and Mines has the results of several studies — those commissioned by Deloitte and Hatch Mott MacDonald Inc., environmental and engineering studies done by Noront and a $785,000 joint federal-provincial community transportation corridor study conducted. It was conducted by Webequie, Eabametoong, Neskantaga and Nibinamik First Nations.  Alan Coutts, president and chief executive officer of Noront, said it’s up to the province to take those studies, look at what it would take to meet community and industry needs, and fine-tune them into a plan.  First Nations completed the joint study at the end of June, but its results haven’t been made public. Northern Development and Mines Minister Michael Gravelle said his ministry is still in discussion with those communities “as to where we go next.” …”
  • Speaking of that infrastructure study & First Nations … Navigating the Ring of Fire road Map: We will lead the regional planning — Eabametoong First Nation Chief Shares Community Viewpoint … It seems as though each Northern Ontario news service has obtained and shared slightly differing views on, or excerpts from, our recent All Season Community Road Study. This set of news stories emerged last week while KWG was also promoting their work towards a rail corridor study (no bikinis this time). The reality is that our Community Road Study has always been for the purpose of gathering existing engineering and land use data for enabling informed dialogue among the 4 First Nation communities regarding options and priorities for road connection. It was explicitly intended to consider options for connecting communities together, and to Provincial highways; not industrial use of future corridors …”
  • Meanwhile, Noront continues to raise funds … “Noront Resources Ltd. is pleased to announce that it has filed a preliminary short form prospectus (29 page PDF), dated and filed on September 7, 2016, in the Provinces of Ontario, British Columbia, Alberta, Manitoba, New Brunswick and Nova Scotia and obtained a receipt from the Ontario Securities Commission to qualify the distribution of units of Noront and flow-through units of Noront and the common shares and warrants underlying the Units and Flow-Through Units. If the maximum offering is achieved, the Company will raise aggregate gross proceeds of $10,000,000 and $3,000,000 if the minimum offering is achieved …”
  • … and KWG grows its board of directors The Board of Directors of KWG Resources Inc. has resolved to increase its number from five to six and to appoint Bruce Reid to the new position. The Company also announces that Cynthia Thomas has resigned as a member of the Board and that Jennifer Boyle has been appointed to fill the vacancy.  Bruce Reid (macroaxis micro bioGoogle Search “Bruce Reid carlisle”) was previously a director of the Company and is the former Executive Chairman and, before that, Chief Executive Officer of Carlisle Goldfields Limited, a Canadian-based gold exploration and development company that was recently acquired by Alamos Gold Inc. He was previously the Founder, President and Chief Executive Officer of U.S. Silver Corp., the largest pure silver producer in the United States and, prior to that, he was Senior Vice President of Mining Corporate Finance at Mackie Research Capital Corporation, a Canadian investment firm. His experience in corporate finance and in the mining and mineral exploration industry extends over more than 35 years following graduation with a B.Sc. in Geology from the University of Toronto and a finance degree from the University of Windsor.  Jennifer Boyle (links to LinkedIn profile) is currently the Head of Global Corporate Finance and General Counsel for a broker-dealer and institutional forex firm, and was a director of Carlisle Goldfields Limited until its acquisition by Alamos Gold Inc. She was formerly the Chief Executive Officer of St. Eugene Mining Corporation prior to its acquisition by Claude Resources Inc. and then became the President and Chief Executive Officer of Satori Resources Inc., a spin-out company created from the acquisition of St. Eugene. Previously, she was a co-founding Director and Executive VP of Canadian Royalties Inc. Ms. Boyle practiced securities law prior to building a career on the mining issuer side of the business …”
  • One analyst’s quick take from last week: “Noront Resources Ltd Declines A lot (30 August), Is Now One of The Worst Performer”

 

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