Ring of Fire News

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

Ring of Fire News – 9 Jan 12

  • While not in the Ring of Fire area, another court decision giving First Nations more say in development in their back yards.  “In a decision of the Ontario Superior Court of Justice, released January 3, Madam Justice Brown ordered that Solid Gold Resources Corp. cannot carry on any further exploration activity on its claims block for 120 days, and that during this time the company and the Ontario Crown must engage with Wahgoshig in a process of meaningful consultation and accommodation about any such further exploration. She ordered that if this process is not productive, Wahgoshig can go back to court to seek an extension of the injunction. Solid Gold’s mining claims block is in the heart of Wahgoshig’s traditional territory, on land that is of significant importance to Wahgoshig. Solid Gold came onto this land and started drilling without any consultation or accommodation occurring first. The court decision clearly finds this to be wrong ….” First Nation news releaseCourt decision (HTML) – Court decision (PDF) – More more more – more
  • Premier following latest court decision:  up to businesses to consult with First Nations.  “…. Premier Dalton McGuinty would not comment directly on the ruling Thursday but he waved aside questions about whether this would make relations between First Nations and exploration companies more difficult. “There is an important legal obligation now placed on businesses to consult in a formal and thorough way,” he said after an announcement in Waterloo, Ont. “We need to get beyond the times where First Nation communities and the interests that they had in resources were given short shrift and were disrespected.” That obligation to consult, he added, is there “for a good reason.” “We fully expect that if businesses have an interest in pursuing these kinds of explorations, that they will consult.” ….”  Sourcealternate source if first link doesn’t work (PDF)
  • A former provincial energy minister-turned-consultant said First Nations will have the ultimate say on how the Ring of Fire mineral developments will unfold, and that includes the location of a proposed ferrochrome smelter. George Smitherman is pitching for the furnaces to be located in the northwestern Ontario municipality of Greenstone, and the village of Exton, which is already designated as a future ore transloading junction. Cliffs Natural Resources has maintained Sudbury is the frontrunner among four Northern Ontario communities to land the processing plant, and its 400-plus jobs, but only if provincial power rates are competitive with neighbouring jurisdictions. The international miner is expected to name the site for the plant sometime this year. “If the company persists in seeing the decision narrowly on the basis of power, then this has great project risk.” ….”  Source – A reminder:  Smitherman is working for the Municipality of Greenstone and Aroland First Nation trying to get a smelter into that part of northwestern Ontario.
  • Lakehead University economist worried about implications of Conference Board of Canada report for Thunder Bay’s port, Ring of Fire.  “The new report by the Conference Board of Canada titled Northern Assets: Transportation Infrastructure in Remote Communities on transportation in northern Canada provides a case study of Churchill Manitoba as a potential international gateway that may give the Port of Thunder Bay some cause for concern. The Port of Churchill and its Bay Line rail line play a key role in what is referred to as the Government of Manitoba’s Churchill Gateway System. Churchill could increase its role as a shipping hub by diversifying the range of agricultural products it handles and by increasing its share of Nunavut-bound freight—especially for mining projects. As well, climate change and melting sea ice is opening up the possibility of developing polar shipping lanes between Churchill, Asia, and Europe …. Alarm bells should be ringing in Thunder Bay given that this new strategy is not just a Manitoba government lobbying strategy but now also seems to have been given the blessing of the Conference Board of Canada. What’s next? A call for Federal government funding to build a rail link from Churchill to the Ring of Fire?”  Source Conference Board reportalternate report link if first link isn’t working (PDF)
  • Predictions (1)  Lakehead University economist:  “As 2012 dawns, Ontario’s Northwest begins another year of change and anticipation of change …. Despite the new knowledge economy, rocks and trees will still be important to the regional economy in 2012. However, despite the promise of the Ring of Fire, nothing substantial will happen without the cooperation of the First Nations, competitive energy prices and new transportation infrastructure ….”  Source
  • Predictions (2)  “…. Patrick Dillon, Business Manager of the Provincial Building and Construction Trades Council of Ontario, said work is currently picking up in transportation, mining and utility projects. All areas of the province will be seeing growth, like the north, where mining is getting stronger, roads need to be built and the Ring of Fire has potential for huge growth. “We as industry partners are really going to have some forethought and discussion, basic understanding between us about the Ring of Fire. It’s pretty remote and it’s going to take a pretty major construction workforce to supply,” said Dillon ….”  Source
  • Ring of Fire junior miner, KWG Resources announced it’s raised $1.75 million through flow-through shares to help pay for exploration at its high grade chromium project in the James Bay lowlands. In a Dec. 30 release, the Montreal-based company said it’s using the proceeds to fund half of its current drilling program at the Big Daddy deposit, currently being conducted by Cliffs Chromite Far North, formerly Spider Resources. Of the 17,500,000 units issued at a price of $0.10 per unit, insiders of the company purchased 2,500,000 units, or 14 per cent of the offering.”  Source KWG news release
  • Noront Resources Ltd. is pleased to announce the completion of the private placement financing originally announced on November 29, 2011.  Noront has issued 4,073,800 total flow-through common shares (“Flow-Through Shares”) at a price of $0.86 per Flow-Through Share for gross proceeds of $3,503,468. Dundee Securities Ltd., acted as lead agent on behalf of a syndicate including Raymond James Ltd.  In connection with the Offering, the Agents received a cash commission equal to 5.0% of the gross proceeds raised under the Offering. All securities issued will be subject to a four month hold period under Canadian securities laws. The gross proceeds from the sale of the Flow-Through Shares will be used for Canadian Exploration Expenses (“CEE”), with the Company to use best efforts to qualify such CEE as “flow-through mining expenditures”, to fund ongoing exploration activities on the Company’s McFauld’s Lake project. Such CEE will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2011 ….”  Source
  • Green Swan Capital Corp. has successfully secured financing to fund a mining joint venture it has been working on with Melkior Resources Inc.  The Ottawa capital pool company raised $647,019.98 via flow-through and cash financings. Flow-through financing included 1,807,846 shares at 13 cents per share, and the cash financing comprised 4,120,000 units at 10 cents a share. Last August, Green Swan announced it was looking to acquire an option to purchase up to a 70-per-cent interest in Melkior’s RiverBank and Broke Back claims in the Ring of Fire area of northern Ontario ….”  Source

More open source information (excerpts from information monitored 1 Dec 11-6 Jan 12 (PDF) here.  All information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act.  We’re not responsible for the accuracy of the source material, and inclusion of material doesn’t mean endorsement.

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Ring of Fire News – 15 Aug 11

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Information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act.  We’re not responsible for accuracy of original material, and inclusion of material doesn’t mean endorsement.


  • Premier McGuinty:  Ontario’ll put up infrastructure money for Ring of Fire (as soon as we see how much the private sector puts up).  “The Ontario Liberals will wait to see how much money the private sector is willing to invest in infrastructure to develop the Ring of Fire chromite deposits before it puts government money into the area, said the premier. The province will “definitely” have to help build infrastructure, such as roads, to bring the project online, but it wants to “maximize” its opportunities before it does so, Dalton McGuinty told reporters in northern Ontario Saturday afternoon. Any public investment would have to be shown to benefit Ontarians — and especially northern Ontarians — and that includes businesses and First Nations. “We’ve got an opportunity to do this in a way that’s never been done before so we’re excited about that,” McGuinty told reporters at Sudbury’s Laurentian University. “But, yes, at some point in time, it will call for an investment in infrastructure,” said the premier ….” (Source: Toronto Sun/QMI Media, 13 Aug 11)
  • Ontario NDP leader:  if it’s mined in Ontario, it’ll be processed in Ontario.  “In a campaign swing through northern Ontario, NDP Leader Andrea Horwath vowed to stop resources mined in the province from being exported if they can be processed here. “Companies are pulling them out of the ground and shipping them elsewhere for processing and it doesn’t have to be that way,” Horwath said Monday from Dubreuilville, Ont. “We need to be conscious about what is happening with our natural resources. It helps us put some control over how much of our resources get processed and it creates good jobs for Ontario families.” ….”  (Sources:  Toronto Star, 9 Aug 11; Ontario NDP news release, 8 Aug 11)
  • Ontario Minister of Northern Development, Mines and Forestry:  Ontario NDP doesn’t get it.  “…. “What the NDP appears to be willfully ignoring is that in Ontario we process minerals from other jurisdictions — from Quebec, British Columbia, Newfoundland and Labrador,” he said. Even the United States, Peru and Chile send ore to Ontario to be smelted. “If they are prepared to say they are going to close the doors by absolutely demanding processing take place in Ontario they are very much risking hundreds of jobs that are there now,” Gravelle said from his Thunder Bay riding ….”  (Sources:  Toronto Star, 9 Aug 11; ministerial statement, 9 Aug 11)
  • Editorial:  Ontario NDP doesn’t get it.  “…. As mining resurges in importance, Horwath wants ore processed here wherever possible instead of being shipped away to less-expensive locations. Northern communities are already tripping over themselves trying to convince Cliffs Natural Resources that theirs is the best location to process chromite ore from the Ring of Fire development. Cliffs can simply send the stuff wherever it wants and Ontario has disadvantages beginning with higher electricity costs than any other jurisdiction Cliffs is considering. What is Ontario promising Cliffs to convince it to process its chromite here? Under Horwath’s plan, if a suitable smelter exists, it would be guaranteed the right to process the ore that Cliffs and others take out of the ground. The danger here is that a sole, protected enterprise would inevitably become uncompetitive and might ultimately fail. Then it would be up to government to bail it out, a result that would serve no one in the long run.”  (Source:  Chronicle-Journal, 10 Aug 11)
  • Technology Centre:  Don’t put all your economy eggs solely into the Ring of Fire basket.  “…. The Ring of Fire not only sounds exciting but seems to hold great promise for the future of our economy. Regional communities are busy strategizing and committing resources toward ensuring that their community realizes the benefits and wealth from this development. The Northwest has the resources and the world wants them. Many believe that our economic woes are solved! This worries me. I sense that we are once again focused on the resource economy dream. Have we learned any lessens from what happened with the forestry sector? The Northwest’s economy was driven by the forest sector with minimal diversification, innovation and value-added activities ….”  (Source:  Letter to the editor, 10 Aug 11)
  • Mining Watch Warning via Twitter Cliff’s approach in BC doesn’t bode well for Ontario’s Ring of Fire.”:  “Tl’azt’en Nation issued a stop work order to Cliffs Natural Resources Inc., a company that is illegally operating on their territory. Cliffs Natural Resources Inc. is a large US mining company based in Ohio. Tl’azt’en Nation Chief Ralph Pierre says, “Cliffs is a multi-billion mining company from the United States that seeks to develop properties in central British Columbia and in the Ring of Fire deposit in northern Ontario. They are a multi-national company from a developed country so they should know better than to lie to the Indigenous People.” In April of this year, Cliffs committed to postpone their 2011 mineral exploration program until a signed exploration agreement was in place with Tl’azt’en. Negotiations immediately commenced in May and then company used unethical means by making commitments to our trapline holders to gain their support. Instead of continuing negotiations directly with the Chief and Council, the Cliffs consultants did an ‘end run’ and promised to assist Keyoh holders in the remote village of Middle River (the closest Tl’azt’en village to the exploration site) with telephones, internet service, clean water, sewage upgrades, church repairs, jobs, etc …. ”  (Sources:  Mining Watch Twitter post, 14 Aug 11, Tl’azt’en Nation news release, 11 Aug 11)
  • Canada, Ontario agree to joint assessment panel for proposed mineral project near several northern Ontario First Nations (not this one, though).  “Canada’s Environment Minister Peter Kent and Ontario’s Minister of the Environment John Wilkinson announced today the establishment of a three-member joint review panel for the environmental assessment of the proposed Marathon Platinum Group Metals and Copper Mine Project in Ontario. Minister Kent, in consultation with Minister Wilkinson, has appointed Dr. Louis LaPierre as the Panel chair, and Dr. David Pearson and Dr. Philip H. Byer as Panel members. Biographical information on the Panel chair and members is available in the accompanying backgrounder. The Panel has a mandate under both the Canadian Environmental Assessment Act and the Ontario Environmental Assessment Act to consider whether the project is likely to cause significant adverse environmental effects. After the conclusion of the review process, the Panel will prepare a report setting out its conclusions and recommendations relating to the environmental assessment of the project ….”  (Source:  Canadian Environmental Assessment Agency news release and backgrounder, 9 Aug 11)
  • Melkior Resources Inc. is pleased to announce that drilling on its 100% owned McFaulds East Rim property located in the Ring of Fire area, James Bay, Ontario is ongoing. The McFaulds East Rim property consists of 1208 claim units covering 193.28 km2. In addition to drilling East Rim, Melkior drilled Riverbank and Broke Back, which recently signed a revised letter of intent with Green Swan Capital Corp …. Riverbank and Broke Back combined consist of 69 unpatented claims covering 147.84 km2 ….”  (Source:  company news release, 12 Aug 11)

Summary of more open source information and sources cited (1-14 Aug 11) also available here (PDF).

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