Cliffs’ application for an easement over Canada Chrome claims dismissed – by Henry Lazenby (MiningWeekly.com – September 12, 2013)

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TORONTO (miningweekly.com) – The Ontario Mining and Lands Commissioner on Wednesday dismissed an application by a subsidiary of US iron-ore miner Cliffs Natural Resources seeking an easement over mining claims that TSX-V-listed junior KWG Resources had staked from Exton, in the Ring of Fire, in Northern Ontario, on which it proposes to build a railway.

In August 2012, Canada Chrome said it was pushing ahead with its proposed 300 km railway and had applied to Ontario’s Ministry of Natural Resources for 32 aggregate permits on sites located along a string of claims that could form the bed of its proposed railway. The claims on the northern half cover the only ridge of high ground where road and rail is constructible.

However, Cliffs brought an application seeking that the Minister of Natural Resources grant an easement under the Public Lands Act over Canada Chrome’s mining claims.

The easement was sought to build a road for the development of the Black Thor deposit, while Canada Chrome wants to build a railroad to develop its interests in the Ring of Fire, including the Big Daddy and Black Horse deposits.

In a recent interview with Mining Weekly Online, KWG Resources CEO Frank Smeenk said that given the vast potential of Northern Ontario’s still-dormant Ring of Fire polymetallic region, the timing is now ideal to extend the existing provincial railway infrastructure northwards to open up the region for mining.

REVISED GEOLOGICAL REPORT

Meanwhile, KWG Resources this week received a revised geological report and resources calculation inferred from drilling data recovered to date from the Black Horse chromite deposit, from Sibley Basin Group Geological Consulting Services.

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