KWG is involved in the discovery of the “Big Daddy” chromite deposit and plans to develop a world class chromium mine in northern Ontario
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KWG is involved in the discovery and plans to develop a world class chromium deposit in northern Ontario, �
ChromiumIs “the stainless”
In stainless steel
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Chromium is the Stainless in stainless steel, and without chromium, their is no stainless steel �
Foundries add ferrochrome to iron and other metals to produce 2,300
varieties of stainless steel containing 8 to 28 % chromium
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Foundries add ferrochrome to iron and other metals to produce stainless steel�
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Ferrochrome is produced by the reduction of the mineral chromite by smelting. This is a simplified flow sheet of Outokumpus Kemi mine in Finland where chromite ore containing 25% Cr2O3 is milled and concentrated prior to being smelted, to produce ferrochrome that now contains 53% Cr2O3.�
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Ferrochrome production in Finland is small in comparison to South Africa which produces 70% of the worlds ferrochrome, all of it from the Bushveld complex. The Kemi chromium deposit is very similar to our “Big Daddy”, in that they are both large bulk minable deposit, �
Mining in the
Bushveld Complex
S. Africa
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Unlike the South African deposits which are thin shallow dipping sheets, half a metre to 2 metres thick.�
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The Kemi mine feeds its chromite concentrate to a smelter – at Tornio, which in turns feeds a foundry that produces a varuiety of stainless steel products, �
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This fully integrated operation produces stainless end user products like tubing and sheet metal�
Kemi
Mine, Finland
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The chomitite layer at Kemi can be traced for 15 kilometers, but only a 3 kilometer segment is thick enough to be mined.�
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The chromite was first discovered in 1959, and the go ahead decision made in 1964, production from the open pit began in 1968, started�
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This is a cross section of the main pit at Kemi, the purple band is t chromite ore which has an average thickness of 40 metres, an average grade of 26% Cr2O3�
In comparisson, these are the results of the discovery holes on the Big Daddy last year, which demonstrates that the thickness is similar to Kemi, but the grades are much higher, averaging just below 40%, in comparisson to Kemis 26%.�
“Big Daddy”Chromitite
Drill Section1200E
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Drilling has shown good continuity to a depth of 300 metres�
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And 400 metres of strike length . Last winter we conducted a detailed gravity survey which mapped out the chromitite, and demonstrated that the deposit is still open to the NE for another 800 metres. We have an 11,000 metre drilling program underway with the goal of fully defining the extent of the chromitite by x-mas. �
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The yelow line is the Claim Boundary of the property containing the Big Daddy, and is a Joint Venture between KWG, Spider and Freewest. Sseveral other chromite discoveries were made last year. Noront made two discoveries 4 km to the SW, the Blackbird One and Two, and Freewest made two discoveries to the northeast, the Black Thor, and the Black Label. We believe that these discoveries form one continuous layer of chromitite, shown as the heavy black line, which are contained within the Ring of Fire Intrusion, shown in purple. The potential of this chromitite horizon is valued in the billions of dollars�
Ring of Fire
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And this represents only a small segment of the Ring Of Fire, where the rate of discovery of high quality metals deposits, of such diversity, over such a short period of time ,,,,is unprecedented in Canadian History.�
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The Ring of Fire is 200 km west of Debeers victor mine which went into production this summer, and 300 km east of Goldcorp Musslwhite mine. Also shown on this map is the location of the railroad that KWG intends to build.�
Recent Activity●
Initial metallurgical studies on the Big Daddy Chromitite
indicate that high value chromite
concentrates can be produced.●
Cliffs Natural Resources, the largest iron ore company in N.America, has purchased 20% of KWG.
●
Cliffs has chosen KWG to be its strategic partner in developing a chromite
mining operation, and the rail link to new smelter.●
Land acquisition for railroad is nearly complete.●
Railroad construction engineering and data acquisition has begun.●
Baseline environmental data acquisition has begun.●
Canada Chrome Corporation was incorporated as a subsidiary of KWG to be the operating company.
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A $5,000,000 drilling program is underway, leading a resource estimation on the Big Daddy deposit.
Chromite Information• 90% of the chromite
mined is used in the production of stainless steel
• In the production of stainless steel there is no substitute for ferrochrome
• 70% of world chromite
reserves currently located in South Africa
• China is largest consumer of ferrochrome (50%)
• High-grade chromite
ore is valued at $350-$350/tonne delivered to port
• The medium to long term price looks set to rise as fundamentals become favourable with strong demand from the far east.
• A strategic metal with no North American source.
About Cliffs Natural Resources Inc.Cliffs Natural Resources (NYSE: CLF) (Paris: CLF) is an international mining and natural resources company. They are the largest producer of iron ore pellets in North America , a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal.
With core values of environmental and capital stewardship, their colleagues across the globe endeavor to provide all stakeholders operating and financial transparency as embodied in the Global Reporting Initiative (GRI) framework. The Company is organized through three geographic business units:The North American business unit is comprised of six iron ore mines owned or managed in Michigan, Minnesota and Eastern Canada , and two coking coal mining complexes located in West Virginia and Alabama . The Asia Pacific business unit is comprised of two iron ore mining complexes in Western Australia and a 45% economic interest in a coking and thermal coal mine in Queensland , Australia . The South American business unit includes a 30% interest in the Amapá Project, an iron ore project in the state of Amapá in Brazil .
Over recent years, Cliffs has been executing a strategy designed to achieve scale in the miningindustry and focused on serving the world’s largest and fastest growing steel markets.
