Resource World Magazine

32 www.resourceworld.com j u n e / j u l y 2 0 1 4 Ontario's Ring of Fire will generate up to $9.4 billion in new economic activity over the first 10 years of operation and sustain 5,500 jobs annually according to a report by the Ontario Chamber of Commerce (OCC), Beneath the Surface: Uncovering the Economic Potential of Ontario's Ring of Fire. In a February 20, 2014 press release, the OCC stated that mining development in the Ring of Fire "could generate more than $25 billion across numerous sectors in Ontario by 2047, including $2.7 billion in revenues for the financial services sec- tor and $1.2 billion for the wholesale and retail trade sectors." The Ring of Fire is in a remote area approximately 500 km northeast of Thunder Bay. It is rich in chromite, nickel and gold estimated to be worth up to $60 billion. It hosts one of the world's largest chromite deposits. But signifi- cant challenges impede the development of the region's resources – the lack of infrastructure, specifically, the lack of a transportation route has been a major bar- rier to resource development. On November 20, 2014 Cliffs Natural Resources Inc. [CLF-NYSE] announced the indefinite suspension of its chromite project in the Ring of Fire stating that it will "not allocate additional capital for the project given the uncertain timeline and risks associated with the development of necessary infrastructure to bring this proj- ect online." Also in the Ring of Fire is Noront Resource Ltd.'s [NOT-TSXV] Eagle's Nest Project where it has conducted ~$150 mil- lion worth of exploration. Noront plans to develop the project with the goal of "establishing commercial production around 2016/2017." Exploration activity continues in the Ring of Fire. Bold Ventures Inc. [BOL- TSXV] and joint venture partner KWG Resources Inc. [KWG-TSXV] recently announced that drill results extended the Black Horse chromite deposit – see below. MacDonald Mines Exploration Ltd. [BMK-TSXV] has also received results from its 2013 drill program that tested two tar- gets: Butler 3 and Butler 4. In an effort to support resource devel- opment in the Ring of Fire, the Ontario government announced that it is willing to commit $1 billion toward the development of Ring of Fire infrastructure contingent on a matching federal contribution. The fed- eral Conservative government has invested in the development of the Alberta oil sands and the province hopes they'll similarly support development in the Ring of Fire. The OCC report concludes, "Ontario is at an economic crossroads. The decisions and actions we take today will resonate for a century. The Ring of Fire repre- sents a generation-defining opportunity. Government, Aboriginal communities, business and others need to collaborate to ensure that we leverage this opportunity for the greater good of all Ontarians." n Ontario Government challenges federal government to match $1 billion investment in Ring of Fire Bold venTureS/KWG exTend ChromiTe depoSiT; find Gold Bold Ventures Inc. [BOL-TSXV] and KWG Resources Inc. [KWG-TSXV] recently reported assay results from a dia- mond drill program on their Koper Lake Joint Venture in the Ring of Fire region, 530 km northeast of Thunder Bay, Ontario. The property is held under a 100% option by Bold from Fancamp Exploration Ltd. [FNC-TSXV]. In turn KWG has optioned the property from Bold. At the completion of the various earn in requirements, Bold and KWG would have an 80% and 20% working interest respectively in any and all metals other than chromite and KWG would have an 80% working interest in chromite while a 20% carried interest would reside with Bold. The primary objective of the program, funded by KWG, was to increase the size of the inferred resource contained by the Black Horse chromite deposit that currently stands at 46.5 million tonnes grading 38.8% chromite (Cr 2 O 3 ). Three holes, FN-14-040, 042 and 043, intercepted chromite mineralization which confirmed the continuity of the Black Horse chromite deposit. The drilling also demonstrated that the deposit is substantially thicker than anticipated. Highlights include FN-14-040 that returned 129 metres grad- ing 37.63% Cr 2 O 3 , including 70.5 metres of 42.02% Cr 2 O 3 , including 19.5 metres of 45.78% Cr 2 O 3 . Subsequently, KWG has released an updated, inferred, chromite resource totaling 77.9 million tonnes at a grade of 35.3% Cr 2 O 3 . Unexpectedly, from 223.97 to 224.47 metres, hole FN-14-039 intersected a 0.5- metre quartz vein that assayed 8.85 grams gold/tonne. A re-assay of this sample returned 12.20 grams gold/tonne. Future drilling will focus on the higher grade northeastern portion of the chromite deposit which remains open at depth and on strike to the northeast. The gold poten- tial will also be investigated. Bold Ventures senior management were also senior management of Noront Resources Ltd. [NOT-TSXV] during the Double Eagle (later named the Eagles Nest) nickel-copper-PGE discovery as well as the Blackbird chromite and the Thunderbird vanadium deposits, all located in the Ring of Fire. Also in the Ring of Fire region, Bold has been systematically carrying out air- borne VTEM electromagnetic surveys over underexplored areas followed by drill test- ing anomalies that meet the Bold model criteria. This has been funded through earn-in option agreements with a subsid- iary of Dundee Resources Limited whereby they have the option to earn up to a 1/3 interest in Bold and its subsidiary Rencore Resources Ltd. Ring of Fire properties by funding $5 million of exploration. n MINING MINING

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