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.

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Re: KWG Clarifies Press Release

KWG Resources Inc.

over 7 years ago

in response to AGORACOM's message

So the total tonnage of chromite found so far in the ROF may not be recoverable. Most of us know that, and we also know there is more as yet undiscovered, so a figure giving a per ton price can easily translate into a very rough approximation of the 'value' of the deposits at current prices.

We and the Chinese know that figure is something that will change with market fluctuations, but still, in my personal opinion, 343+ million tonnes of 30% chromite could be worth more than 10X the figure given by the Globe article. In short $1.65 per pound of contained chrome metal for the processed ore gives a total of $3,630Canadian per ton(of chrome metal), and $370+billion in total.

Capital, mining, shipment and processing costs are still unknown and will be substantial. Also some chromite will probably be sold as ore, giving a much lower return.