KWG Resources forms Ring of Fire LP an organization to accelerate Ring of Fire development
KWG one of the top mining companies, along with Noront Resources and Bold Ventures, that is hoping to mine chromite in the Ring of Fire has announced the formation of a Ring of Fire LP as a method for accelerating development of the Ring of Fire.
To help fund the Ring of Fire LP, KWG will host a reception at the Design Exchange in Toronto on June 18, 2018. The event was originally set for April 5, 2018 but has been delayed until June.
The purpose of the event is to raise awareness of the present opportunities to accelerate development of the Ring of Fire and to fund the establishment of an association to compile and publish relevant research and data.
“The revised reception date will ensure that current international trade issues and prospects affecting this development do not interfere with the campaign of any person seeking election as a Member of Provincial Parliament,” said Bruce Hodgman, KWG vice-president.
On March 5, 2018 KWG announced the creation of the Ring of Fire LP, a limited partnership flow-through fund that will drilling and exploration costs for the preparation of a comprehensive feasibility study and mining plan for the Black Horse Joint Venture.
The Ring of Fire LP was created by Ring of Fire GP Inc., established by Patrick Lilly, its CEO, and John Rule, its Secretary-Treasurer. Its goal is to raise $50 million
KWG proposes to create a blockchain-contract offering that will be backed by the Ring of Fire’s chromite discoveries, a concept which KWG describes as a ‘bank-in-the-ground’.
Despite the threat of levying a tariff on steel and aluminum from Canada earlier in March, by President Donald Trump, KWG cited a December 20, 2017 report in which Trump ordered his secretary of the interior to compile a list of critical minerals.
Chromium is on the list of critical minerals.
The tariffs against Canada were later removed by Trump.
While rival Noront Resources is conducting a four-city search to place its ferrochrome smelter, Thunder Bay, Sault Ste. Marie, Timmins and Sudbury, KWG Resources favours a rail route from the Ring of Fire Area to Hearst and then railed via Algoma Central Railway to Sault Ste. Marie.
KWG Resources envisions some of the facilities being in Sault Ste. Marie Michigan.
The Port Authority and Missinabie Cree territory:
Because the Algoma Central Railway traverses the traditional territory of the Missinabie Cree First Nation, its pro-development people have been proactive in seeking a commercially secure future for this invaluable transportation link. As an asset of a federal agency the Railway would be governed by the business and geographical communities that it serves. To make viable the exploitation of the Ring of Fire's chromite deposits, that agency could then finance and construct an extension of the railroad from Hearst to the Ring of Fire. While the proposed expansion of the area's road network is desirable for the linkage of its remote communities, trucking at ten times the cost of rail would render the chromite's exploitation economically unfeasible.
Creation of a Ring of Fire Port Authority
KWG had previously propounded a plan to Prime Minister Stephen Harper and his designated Ministers, for Canada's participation in the development of the Ring of Fire by creation of a Port Authority under the provisions of the Marine Act. Their colleague, the Honorable Maxime Bernier, applauds that model in his current role as Opposition Critic for Innovation, Science and Economic Development.
About KWG:
KWG is the Operator of the Black Horse Joint Venture after acquiring a vested 50% interest through Bold Ventures Inc. which is carried for 10% (20% of KWG's equity in the JV) by KWG funding all exploration expenditures. KWG also owns 100% of CCC which has staked claims and conducted a surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary, Muketi Metallurgical LP, is prosecuting two chromite-refining patent applications in Canada, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA. The national phase filings are under review in each of those jurisdictions, save that Canada and South Africa have notified that they will each grant a patent for the direct reduction method.
KWG Resources is an exploration stage company that is participating in the discovery, delineation and development of chromite deposits in the James Bay Lowlands of Northern Ontario, including 1,024 hectares covered by four unpatented mining claims (Fancamp Claims) approximately 280km north of Nakina, Ontario, which contains the Black Horse chromite deposit, named the “Black Horse Project” and 1,241 hectares covered by seven unpatented mining claims (Big Daddy Claims) approximately 280km north of Nakina, Ontario, which contains the Big Daddy chromite deposit, named the “Big Daddy Project”.
Both the Big Daddy and Black Horse chromite deposits contain 43-101 compliant resources. Please visit the (Technical Reports) page to access the 43-101 reports.
KWG Resources is now the Operator of the Black Horse Joint Venture after acquiring a vested 50% interest through Bold Ventures Inc. which is carried for 10% (20% of KWG’s equity in the JV) by KWG funding all exploration expenditures. The Corporation has the right to acquire: (i) up to an 80% interest in respect of chromite contained in the Koper Lake Project; and (ii) up to a 20% interest in respect of the non-chromite minerals contained in the Koper Lake Project. The Corporation also has a 30% interest in the Big Daddy Project.
KWG favour rail as the prime transportation method
Canada Chrome Corporation a subsidiary of KWG Resources has also staked a corridor of mining claims with the intent of developing a railway, linking its chromite deposits to the national infrastructure of road, rail, and natural gas pipelines within the municipality of Greenstone.
KWG Resources is also developing a novel method of reducing chromite to ferrochrome using natural gas that has much lower energy consumption than the current practice of using Electric Arc Furnaces. KWG is confident that it will overcome the key hurdle, the marketing of its ferrochrome, because of its ongoing discussions and agreements with Chinese corporations that cover all aspects of this development.
The low-cost bulk transport of raw ore from a small footprint underground mine in the “wetlands” to an integrated chromite reduction facility located on a brownfield site not only optimizes the economic sustainability, but also the development’s environmental and social sustainability. KWG Resources is seeking its social licence for these developments by inviting the most affected First Nations to be both partners in and owners of the development.
Contact Information:
KWG Resources Inc.
Bruce Hodgman, Vice-President
416-642-3575
info@kwgresources.com
www.kwgresources.com
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