Ring of Fire News

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What's up with the biggest thing happening in mining in NW Ontario?

#RingOfFire (#RoF) News – June 23, 2017

  • More on Sault Ste. Marie & Sioux Lookout looking for some RoF linkages “The Sault Ste. Marie Economic Development Corp. is joining their counterparts in Sioux Lookout to support initiatives that will bring economic diversity to the North with the Ring of FireThe proposal calls for a trans-load facility to be established in Sioux Lookout, where raw materials can be trucked and transported via rail across the region.  Sault Ste. Marie was selected as the ideal partner for the project because of its location, history and infrastructure, said EDC CEO Tom Dodds.  Dodds was recently in Sioux Lookout to tour the proposed trans-load facility location and discuss integrated transportation systems and the commercial and industrial networks that could benefit from the proposal.  “Our concept is the same and we see the synergies that could be created from an east west route,” Dodds said.  That east-west route, would run along an old winter road system that is already in place to service communities to Pickle Lake …” more (mynorthbaynow.com)
  • Still with the “who gets the smelter?” hunt “Noront Resources’ search for a home for a potential ferrochrome smelter took them to Sudbury and Timmins in mid-JuneThe largest claim holder in the Ring of Fire recently tweeted photos of visits to the northeastern Ontario cities as part of a pan-Northern Ontario scan to find a suitable landing spot for a $600-million to $800-million processing plant.  Sudbury, Timmins, Sault Ste. Marie and Thunder Bay-Fort William First Nation are in the mix to host the facility which could be years away from construction given the slow pace of development talks between the Ontario government and First Nation communities in the James Bay region …”
  • One analyst’s take on Noront“The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Noront Resources Ltd. is -7.009414.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Noront Resources Ltd. is -12.091297.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Noront Resources Ltd. is -6.652539. This ratio is found by taking the current share price and dividing by earnings per share …”
  • … and another’s “Noront Resources Ltd delivered 112.4% ROE (Return on Equity) in the last year. However, to put Noront Resources’s Return on Equity in perspective, we must compare it to the performance of its industry, which averaged an ROE of 18.17%. Although, Noront Resources appears to outperform the industry, we can call it more efficient only after assessing the role of leverage in generating those returns and its sustainability based on current financial health …”
  • Here’s whazzup one of the other Rof players … “Bold Ventures Inc. and Marten Falls First Nation are pleased to announce the signing of a Memorandum of Understanding that outlines the values that both the First Nation and the Company will uphold in their relationship. This agreement provides the frame of reference and guidance for both the Company and the First Nation regarding exploration and development work within the Marten Falls First Nation traditional lands …” – more from a recent company update here
  • … and another “Golden Share Mining Corporation is pleased to announce that it has filed Articles of Amendment to change its name to Golden Share Resources Corporation. Shareholders approved a special resolution to change the name at the Company’s Annual and Special Shareholders Meeting held on June 22, 2017 … Golden Share’s participation of a potential rail road to the Ring of Fire region located in north-western Ontario provides tremendous potential for the Company …”
  • Some Fraser Institute think-tank commentary … “IT’S OFTEN said that successful First Nations must operate at the speed of business, not the speed of government. That certainly applies to First Nations affected by the Ring of Fire mining proposal.  Long delays and lack of communication between governments and the nine First Nation communities involved have plagued efforts to establish mining of largely chromite deposits in the region 500 km north of Thunder Bay.  A central bone of contention is the construction of an all-season transportation corridor to get the mined ore to plants in Northern Ontario where it can be refined …”
  • … and a bit of pessimism from a mining company with no dog in the RoF fight: “… “The Ring of Fire . . . is too much pie in the sky,” Gino Chitaroni says.  “There are too many working parts. You don’t need millions of dollars there. You need billions. There is no way in hell it will be developed anytime soon.”  Chitaroni, president and manager of PolyMet Labs in this old mining town, says political problems are delaying the Ring of Fire project in northwestern Ontario even more. It will be at least a decade – probably more – before anything comes out of it, he believes …”
  • RoF an example of how a proposed infrastructure fund could help “Any government initiative with a $35-billion price tag is bound to drum up political debate, and the Canada Infrastructure Bank (CIB) has been seeing its fair share. But I stand with the International Monetary Fund, Canadian and global business groups, and aboriginal organizations who say that the CIB, if well structured, is exactly what Canada needs to grow the economy over the long term … It could help finance run-of-river hydro in Nunavut and take mines and communities off diesel. And we already know how helpful a road would be to Ontario’s Ring of Fire region …” – more on the CIB idea from the Infrastructure Canada info-machine here
  • And, among the Tory seats of the Ontario Legislature … “With Ross Romano named the new Progressive Conservative critic for the Ring of Fire, Vic Fedeli of Nipissing wouldn’t be surprised if the rookie Sault Ste. Marie MPP is already planning a visit to the chromite site. He says the two biggest players at the site, Noront Resources and KWG have been very active recently at the site on their own no thanks to the Wynne Liberals …”

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#RingOfFire (#RoF) News – June 12, 2017

  • New KWG-First Nation partnership afoot KWG Resources Inc. and Marten Falls First Nation have agreed to negotiate the terms of a partnership agreement for mining undertakings in the traditional territories of MFFN, particularly chromite resources in the Ring of Fire. The partnership has been conceived of as an equal sharing of profits that may be derived from mining activities after provision for fully-absorbed manufacturing costs, including comminution, concentration and transportation, plus reclamation, and the amortization of project-finance borrowings …” (company news release) – more (Sudbury Star) – more (Northern Ontario Business)
  • More from KWG’s Chinese experts on the proposed railway north into the RoF“A delegation of KWG Resources and Marten Falls First Nation (MFFN), one of the communities near the Ring of Fire deposits, completed a trip to China to lay the foundation for a Far North railway and project financing. A June 1 KWG release said the group was provided with an overview of the feasibility study began last year, when they most recently visited with their project partner, China Railway First Survey & Design Institute Group (FSDI), at its headquarters in Xian, China on May 15 …”
  • … as well as some work toward getting the Soo a piece of the action from another proposed east-west route into the Ring “Economic development officials in Sault Ste. Marie and Sioux Lookout, Ont. are partnering on a joint initiative to support the Ring of Fire. The proposal calls for a trans‐load facility to be established in Sioux Lookout, where raw materials can be trucked then transported via rail across the region.  To help move the project forward, and to represent his community at the project table, Tom Dodds, CEO of the Sault Ste. Marie Economic Development Corporation, attended a meeting … of the Sioux Lookout Trans‐load Facility Partners …”
  • In other corporate news, a new face on the Noront board“Noront Resources Ltd. … announced that John Pollesel, Senior Vice President, Mining at Finning Canada has been appointed to the company’s Board of directors. Pollesel has over 25 years of mining, operations and finance experience. He was previously Chief Operating Officer and Director of Base Metals Operations for Vale’s North Atlantic Operations, with responsibility for Sudbury, Voisey’s Bay and Manitoba operations along with other mining and metallurgical assets. Prior to that, he was Vice President and General Manager for Vale’s Ontario Operations …”
  • … and KWG pulling in mo’ money & paying some bills “KWG Resources Inc. is pleased to announce closing effective as of June 6, 2017 of an additional tranche of its previously announced private placement (the “Private Placement“) of units (each, a “Unit“) at a price of $0.021 per Unit … The Company issued a total of 8,809,524 Units for aggregate gross proceeds of $185,000, in respect of which 5,000,000 Units were issued for cash proceeds of $105,000 and 3,809,524 Units were issued to a consultant of the Company in payment of consulting fee in the aggregate of $80,000 …”
  • Headline & sub-heading seems to sum it up: The Ring is there – what’s needed is fire to get the job done, says Moe Lavigne — Talking about the Ring of Fire has become an industry unto itself,’ said the KWG Resources Vice President …”
  • A bit of an overview of the latest via sudbury.com
  • as well as myespanola.com
  • On the political front, Ontario’s Tories name a new Ring of Fire critic … Sault Ste Marie’s new MPP, Ross Romano, will be the PC critic for Northern Ontario jobs and the Ring of Fire. Ontario PC Leader Patrick Brown made the announcement at Queen’s Park, updating critic roles for his caucus.  “As our newest MPP for Sault Ste. Marie, I’m looking forward to having Ross Romano work hard every day for Northern Ontario families and as part of the PC caucus,” said Brown in a release. “Ross won a riding that the Ontario PCs have not won in 30 years due to his hard work and commitment. Given his background in serving his community as a city councillor, I know he will dedicate his efforts at Queen’s Park to bring about positive change.” …”
  • … while Ontario Conservative leader Patrick Brown mentions the RoF during recent campaigning “… While knocking on doors during the byelection, Brown said the main issue he heard was the government’s inaction on the Ring of Fire — an estimated $60 billion in chromite deposits located about 400 kilometres northeast of Thunder Bay that the PC leader calls a ‘generational opportunity’. Timmins and Sault Ste. Marie are being suggested as possible locations for a future ferrochrome smelter to process the chromite, which can then be used in the manufacturing of stainless steel.  “The fact the government is not at the table pushing the infrastructure investment is a huge problem. There would be spinoff jobs across northern Ontario with the Ring of Fire,” said Brown.  The development of a transportation corridor, currently under consideration by the Liberal government, would be a priority for Brown …”

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#RingOfFire (#RoF) News – June 2, 2017


Filed under: Uncategorized

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