June 28, 2011 – Republic of Mining

[Ring of Fire] A Market For Chrome – by Brian Sylvester (Mining Markets – September, 2009)

June 28, 2011

Please note this article was originally published in Mining Markets in September 2009. Much has changed in the Ring of Fire since then and this article is posted here for archival reasons. – Stan Sudol

Noront Resources (NOT-V) president and CEO Wes Hanson says the global ferrochrome market is somewhere around 17 million tonnes, while his predecessor and Noront director, Joe Hamilton, believes it’s closer to 12 million.

German firm Heinz Pariser Research is forecasting an average ferrochrome price of US$0.79 per lb. and US$1,600 per tonne until 2017. Raw chromite fetches US$200 per tonne.

With global demand of 14.5 million tonnes (the average of the earlier estimates), the global ferrochrome market is worth about US$23.2 billion. A 5% share of that market would be worth US$1.16 billion annually.

Some rough estimates put the chromite tonnage in the Ring of Fire well into the billions but it takes 2.5 tonnes of chromite to make 1 tonne of ferrochrome. And if you saturate the market with too much production early on, prices will sink and the financial models used to finance development would be rendered useless.

[Ring of Fire] When In Chrome: A Brief Histroy – by Brian Sylvester (Mining Markets – September, 2009)

June 28, 2011

The ‘Ring of Fire’ contains vast gobs of black ore known as chromite. Some wild-eyed folks are speculating that there is enough ‘black gold’ for 100 years worth of production at current demand levels. No junior in the camp really knows how much chromite it has but they are all racing to find out.

Somewhere beneath the labyrinth of peat bogs, meandering streams and shallow lakes, there is a hole in an Archean-aged greenstone belt that started everything.

Two men are largely responsible for drilling that hole and finding Canada’s biggest chromite deposits (as well as others): Spider president and chief operating officer, Neil Novak, who until June was the vice-president of exploration of — you guessed it — Noront Resources; and Richard Nemis, Noront’s former president and CEO, and current chairman emeritus.

Spider was seeking diamond-bearing kimberlites in the McFauld’s Lake area, since dubbed the ‘Ring of Fire’ in the late 1990s when it engineered a joint venture with De Beers Canada. It was a good fit: De Beers had cash and, Spider, prospective concessions.

[Ring of Fire] Chrome – Brian Sylvester (Mining Markets – September, 2009)

June 28, 2011

Please note this article was originally published in Mining Markets in September 2009. Much has changed in the Ring of Fire since then and this article is posted for archival reasons. – Stan Sudol

If Las Vegas odds makers were handicapping the field to determine who will be first past the post in the ‘Ring of Fire’ Chromite Derby, Noront Resources (NOT-T) would be the surefire front-runner; Freewest Resources (FWR-V), the dark horse; KWG Resources (KWG-V) and Spider Resources (SPQ-V), the long shots; while Probe Mines (PRB-V) would be the pretender — at least for now.

The winner will publish Canada’s first National Instrument 43-101-compliant resource estimate for a chromite deposit — a feat that could be worth millions.

“I have got the first resource estimate, for sure,” claims Wes Hanson, president and CEO of Noront. “Certainly some of the other players in the camp have very interesting chromite discoveries. Unlike Noront, they are probably about two years behind us in terms of getting it drilled off to a level sufficient enough to allow them to do a 43-101 resource estimate.” While that may or may not be true, Noront’s leader-of-the-pack status did not happen without a plan.

Peat Resources hopes to fuel the Ring of Fire – Resource World Magazine – (May 2010)

June 28, 2011June 28, 2011

http://www.peatresources.com/

http://www.resourceworld.com/

Dr. Peter Telford, President/CEO of Peat Resources Ltd. [PET-TSXV] has a question. How can Ontario meet its political commitments and achieve northern economic development, specifically, how to meet the need of the Ring of Fire proponents for reasonably priced power?

His company may have the answer. Peat Resources has identified over 200 million tonnes of fuel-grade peat in northwest Ontario, representing about 22 million tonnes of pellets, enough to supply Ontario Power Generation’s northern generating stations for over 20 years. Peat is considered biomass and is used in electricity generating stations requiring a long-term, assured supply of environmentally friendly, economically competitive and consistently stable, quality fuel.

“Before going into production, we need to do some feasibility work and scale up our pilot plant operations to a full-scale production facility at Upsala, located 130 kilometres northwest of Thunder Bay, Ontario,” explained Telford. “Right now we can process about 25 tonnes per day. The plant was set up to prove up the technology that we are using and provide us with material for marketing and testing purposes.”

Early warnings for the [Ontario] North ignored – by Wayne Snider (Timmins Daily Press – June 28, 2011)

June 28, 2011

Wayne Snider is the city editor for The Daily Press, the city of Timmins newspaper. Contact the writer at news@thedailypress.ca.

OPINION: Report pushed highest growth in southern urban centres

Many people believe Northern Ontario is largely ignored, both at the provincial and federal levels. This isn’t a new phenomenon, nor is concept limited in terms of the political stripes of ruling governments.

For decades population growth in the south has resulted in a long line of provincial and federal riding boundary adjustments. Provincially, urban centres, particularly the GTA, has been getting more and more clout in Queen’s Park, while seats have been cut in rural and Northern areas.

The voice of the North and rural Ontario is becoming increasingly drowned out by urban centres. So it should not come as any huge shock that government planning has largely centred on southern urban centres. This is by design.

In February 2004, the report Investing in People: Creating a Human Capital Society for Ontario was presented to Premier Dalton McGuinty.

[Sudbury’s Laurentian] Mine school offering MBAs – by Tony Muma (Sudbury Star – June 28, 2011)

June 28, 2011

The Sudbury Star, the City of Greater Sudbury’s daily newspaper.

Michael Lesher, director of mining initiatives at Laurentian University, said the new School of Mines, announced on June 23, will take the institution’s existing expertise in fields related to mining and put them under one umbrella.

“We’ve already been doing many of the things that mining schools have. We’ve got one of the top mineral exploration programs in the world, one of the best mining engineering programs in the world, and we do environmental restoration like nobody’s business,” he said.

“We (also) want to develop programs in mining-related occupational health and safety and offer programs on aboriginal consultation as it relates to potential new mining communities up north.” Asked whether or not the new school would have its own building, Lesher said it wouldn’t “right now.” “I don’t think a building is on the table.”