KWG Resources Inc.

Exploration stage company that is participating in the discovery, delineation and development of chromite deposits in the James Bay Lowlands of Northern Ontario. These deposits are globally significant source of chromite which may be refined into ferrochrome, a principal ingredient in the manufacture of stainless steel.

about 8 years ago

http://resourceclips.com/2016/08/22/kwg%E2%80%99s-ring-of-fire-rail-study-proceeds-road-announcement-anticipated/

KWG’s Ring of Fire rail study proceeds, government road announcement anticipated

by Greg Klein | August 22, 2016

A “conditional bankable feasibility study” for a proposed Ring of Fire railway should be complete by year-end, KWG Resources CSE:KWG announced August 22. The company stated it has “agreed on the deliverables and timetable” with China Railway First Survey and Design Institute Group to examine a 340-kilometre north-south route linking its properties with CN at Exton. Late last month KWG announced Quebec-based CANARAIL Consultants would provide professional services and data for the feasibility study proposed in a January MOU.

KWG looks to China to support its proposed railway.

The news comes as stakeholders continue their vigil for an anticipated provincial announcement on an east-west all-season gravel road. That route, preferred by Noront Resources TSXV:NOT, would connect the region and four native communities with Highway 599 at Pickle Lake, which leads south to a CN line at Savant Lake. A study funded by the provincial and federal governments had been scheduled for completion last June. Ontario has asked Ottawa to match its $1-billion pledge for Ring of Fire infrastructure.

KWG maintains that the 340-kilometre rail link would be necessary to develop the region’s chromite assets. Noront counters that its nickel-copper-platinum-palladium deposits should be developed first, pending better market conditions for chromite. A road would be the faster, cheaper option, the company adds. KWG says Chinese investors have shown interest in a railway.

Noront’s flagship Eagle’s Nest nickel-copper-PGE project reached feasibility in 2012. The company’s other Ring of Fire assets include the Blackbird chromite deposit and the Black Thor and Black Label chromite deposits. Noront and KWG hold 70%/30% respectively of the Big Daddy chromite deposit and 85%/15% of the McFaulds copper-zinc deposits. Noront is KWG’s largest shareholder.

KWG also holds an 80% option on the Koper Lake project with its Black Horse chromite deposit.

Both companies have faced recent public criticism. Last week CBC reported the Neskantaga First Nation issued a “cease and desist” order to Noront, after the company announced a drill program. An online video posted by KWG drew widespread censure for its display of bikini-clad women.

This article was posted by Greg Klein - Resource Clips on Monday, August 22nd, 2016 at 11:26 am.