Finally, after a month’s absence, I’ve returned to post the following article about KWG Resources and their exploration program in the Ring of Fire. The month was spent productively researching and writing articles for the March Issue of Mining Life and Exploration News Magazine, which will be released at the Prospectors and Developers Association of Canada Convention. http://www.pdac.ca/pdac/conv/
The stories I wrote in January will be appearing on A Northern Blog shortly…
Mining Life and Exploration News will also be launching an online site with the latest news and features from the world of mining….stay tuned. http://mininglifeonline.net/
Glenn Dredhart the publisher of Mining Life and Exploration News also puts on The Canadian Mining Expo the largest mining industry show in Northern Ontario http://www.canadianminingexpo.com/
As for this story- the top part of the story is original and published here for the very first time. The second part of the story appears courtesy of Glenn Dredhart and Mining Life and Exploration News Magazine.
Please let me know what you think of the article and your comments are always welcome.
KWG Resources Signs Agreement with Bold Ventures Inc. to Fund Drilling Program at Black Horse Chromite Discovery Site
By Frank Giorno
KWG Resources is the third company in the Ring of Fire that has advanced the most towards exploration of mineral potential and towards finishing its feasibility studies and environmental assessment studies. Along with Cliff Natural Resources and Noront Resources, KWG Resources Inc. (KWG) has found major sources of chromite at its Big Daddy property.
KWG-Bold Ventures Agreement to Explore Black Horse Site for Chromite
However a recent announcement made on February 4, 2013 could be a game changer. KWG Resources and Bold Ventures Incorporated – a fast rising exploration company – announced an agreement that will see Bold Ventures drill the Black Horse chromite discovery in the Ring of Fire, starting as soon as the transaction with Bold Ventures Inc. closes.
The intent of the program is to determine whether this chromite mineral deposit is of sufficient quantity and quality to make it feasible for mining. KWG is advocating the construction of a rail line as the best, most cost-effective method for transporting the chromite for refining.
“There is compelling geological and geophysical evidence to suggest that this mineralization could be part of an extensive continuous emplacement. If this drilling program is able to confirm that, we would be the first Canadian company to develop markets for the Ring of Fire chromite by providing transportation over Canada Chrome Corporation’s contiguous claims, ” Smeenk said.
Bold Ventures Obtains Option to Acquire Black Horse from Fancamp Explorations Ltd.
Earlier in December, 2012, Bold Ventures concluded a four stage option to acquire the Black Horse claims from Fancamp Exploration Ltd., subject to Fancamp retaining a price variable gross metal royalty (the “Fancamp Option”).
Under the terms of the recent agreement between KWG and Bold Ventures, KWG can acquire up to 80% of Bold Venture’s interest in the Fancamp Option by funding 100% of Bold’s earn-in expenditures and option payments. The current program has budgeted $2 million to drill the chromite horizon. An additional $1 million has been budgeted to drill a contiguous possible nickel target.
KWG – Bold Ventures Agreement to Explore for Nickel and Other Non-Chromite Minerals
KWG working towards developing its Big Daddy site in the McFauld’s Lake area received a National Instrument 43-101 compliant resource estimate from Sibley Basin Group over the summer of 2012.
The report was based on an update of a 42-hole core-drilling program at the Big Daddy Mine in the Ring of Fire totaling 13,459 metres that was completed in March, 2012.
Objective of the Drilling Program
The objective of the program was to upgrade resources to the indicated and measured categories, suitable for use in mine design at Big Daddy. The drilling program was managed by Cliffs Chromite Far North Inc. who are also developing the Black Thor chromite mine.
The results show that at a 15% cutoff, the measured resource is 29.5 MT (megaton), grading 29% chromium oxide (Cr2O3) the indicated resource is 7.9 MT grading 26.7% Cr2O3, and the inferred resource is 4.8 MT grading 25.0% Cr2O3.
“We are pleased to note that this updated resource calculation has now confirmed a measured resource category, an important step in determining feasibility of the Big Daddy deposit,” said Frank Smeenk, KWG President.
“The overall size of the deposit has increased without drilling deeper. We are now presented with different options as to how best to mine the Big Daddy, including the possibility of ore sorting or selectively mining the high-grade massive domains with the potential for high-grade direct ship,” he added.
Previous Resource Estimates
The previous resource estimate prepared by Micon International (KWG PR, May 3rd, 2010) also modeled the deposit at a 15% cutoff and produced an indicated resource of 26.4 MT grading 39.37% Cr2O3. The Micon report indicated resource corresponds to the Sibley combined measured and indicated of 37.4 MT grading 28.5% Cr2O3. The lower grade and higher volume of the new model contemplates the use of a less selective approach to mining and incorporates lower grade material, resulting in a lower average grade.
The most significant difference between the two resource estimates is in the inferred category. The Micon model extrapolated the depth continuity to 250 to 300 m beyond the drilling intercepts, while the new model extrapolates the resource to only 50 m beyond drilling. For the purpose of mine planning, this conservative approach is more prudent.
The report entitled “National Instrument 43-101 Technical Report, Big Daddy Chromite Deposit, McFauld’s Lake Area, Ontario, Canada, Porcupine Mining Division, NTS 43D16, Miner Natural Resource Estimation Technical Report” has an effective date of June 1, 2012. The report has a signing date of June 27, 2012. The full report was filed on the System for Electronic Document Analysis and Retrieval (SEDAR) on August 13, 2012 along with the requisite material change report.
The Sibley Basin Group staff person responsible for this resource estimate is Mr. Alan Aubut, a Qualified Person as defined in 43-101 who is independent of KWG Resources Inc., and who has approved the contents of this press release.
Aggregate Permits Sought by Canada Chrome Corporation Along Route of Proposed KWG Railroad Right-of-Way
Meanwhile KWG Resources Inc. reported that its subsidiary Canada Chrome Corporation filed applications with the Ministry of Natural Resources (MNR) for thirty-two aggregate permits at sites that located within the mineral claims along the company’s 308 kilometre-long railroad right-of-way. The sites are located along the proposed route for KWG’s railway to the Ring of Fire region, and may provide material for the construction of the planned rail bed. An environmental assessment and consultation with affected parties have not yet been concluded.
“In our meetings with Matawa First Nations Management Inc. officers and the Canadian Environmental Assessment Agency to review our draft Project Description, we have indicated our preference that the consultation requirements and protocols be developed in their entirety by the affected First Nations, to ensure the adequacy of the process,” said KWG President Frank Smeenk.
“To make that exercise meaningful, we felt that the physical consequences of the development should be described as fully as possible within the regulatory framework. For that reason we have prepared and filed preliminary aggregate borrowing plans to enable a relatively more informed determination of consultation requirements.”
Plan for Permanent Amphibious Aerodrome
Canada Chrome Corporation has also made application to MNR under the provisions of the Public Lands Act, for the grant of title to the lands it has tentatively designated as the “Port of Koper Lake” at the northern terminus of its right-of-way. The application covers two 16-unit claim blocks which include the western shore of Koper Lake where temporary float-plane docking facilities are now in use. As included in the draft Project Description, preliminary plans envisage the development of a permanent amphibious aerodrome at that location together with an adjacent and permanent East-West all-weather runway and heliport terminal as an adjunct to a railroad terminal, fuel storage compound, communications hub, accommodation services, and repair and maintenance facilities.
KWG has a 30% interest in the Big Daddy deposit. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario where the Trans Canada line of the Canadian National Railway can be connected.