In response to the Ontario Securities Commission, KWG clarified its mineral resources at the Ring of Fire. The Black Horse deposit has inferred resources 85.9-million mt of 34.5% Cr while the Big Daddy deposit has measured reserves of 23.3-million mt of 32.1% Cr and 29.1-million mt of measured and indicated resources grading 31.7% Cr.
In checking with mining analysts, they all said the ore would have to be beneficiated but the key element is the SiO2 which will provide an indication of the extent the ore can be beneficiated.
Regardless, the cost will be an additional $20-25 per mt.
KWG, according to competitors, has been trying to get partners to the project but no one is interested, even the Chinese. Assuming that Noront and KWG can get the Canadian government to spring for a C$1-billion to build the transportation infrastructure, the cost of moving the ore from upper Ontario to China, the only likely buyer, would be prohibitively high.