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Infrastructure, Resource

KWG’s Ring of Fire tramway south estimated to cost US$657M

DCN-JOC News Services
KWG’s Ring of Fire tramway south estimated to cost US$657M

TORONTO — KWG Resources Inc. has announced it has received an engineering and design services report on the cost of a tramway that would be built to transport chromite from the firm’s deposits in the Ring of Fire region of Ontario to a potential processing facility to the south.

The report, from Rail-Veyor Technologies Inc., estimates that the capital cost of construction of a Rail-Veyor tramway system designed to transport 10 million tonnes of chromite yearly over 338 kilometres from the proposed underground workings of a potential mine at the Company’s Black Horse Project in the Ring of Fire to a potential processing and/or transfer facility near Nakina, Ont. will be US$656.7 million, a Dec. 23 release stated.

The report also indicated that the operating cost will be US$2.88 per tonne. The estimates in the study are at a plus or minus 25 per cent confidence level.

KWG and its subsidiary, Canada Chrome Corporation (CCC), also announced discussions with the newly incorporated Gitchiziibii Company Inc., which has recently been formed to, among other things, assist with the creation of a trust for members of the Matawa and Mushkegowuk First Nations. The trust is being designed to be endowed with the beneficial interests in infrastructure assets required for mining in the Ring of Fire, located in the James Bay lowlands.

Gitchiziibii, KWG and CCC are currently planning an application for designation of a proposed Rail-Veyor ore haulage tramway system as mining works under the Ontario Mining Act in preparation for flotation of a bond issue for construction financing.

In addition to the Black Horse chromite project, KWG also owns 100 per cent of CCC, which has staked mining claims between Aroland, Ont. and the Ring of Fire.  CCC has conducted a surveying and soil testing program to assess the prospects for the engineering and construction of a railroad along that route between the Ring of Fire and Aroland. CCC has engaged Cormorant Utilities and Rail-Veyor for completion of engineering proposals for the construction of a utility corridor within the route.

KWG has also acquired intellectual property interests, including a method for the reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary Muketi Metallurgical LP has acquired two chromite-refining patents in Canada and one in the USA and in South Africa.

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