Chromite and base metal junior miner Noront Resources has chosen SNC-Lavalin to conduct a transportation study for its McFauld's Lake project in the so-called 'Ring of Fire' of the James Bay Lowlands.
The study is intended to review all potential transportation alternatives and routes from site to existing permanent infrastructure such as road and rail lines in Northern Ontario.
By way of infrastructure, the company is starting with a blank slate as the whole area is a series of bogs, wetlands and eskers.
"It's a challenging environment to say the least," said Noront Chief Operating Officer Paul Semple, who compares the ground conditions as being similar to the Northwest Territories and Nunavut.
Before joining Noront, Semple worked on feasibility studies and mine developments for companies like Western Goldfields and SNC-Lavelin.
The first phase of the study will evaluate all options and recommend a preferred route and method of all-season access to the site. A work program will be defined to minimize the transportation risks in support of a feasibility study. If successful, a feasibility study on infrastructure and transportation will be completed by the end of 2010.
"You can only do so much off satellite, topographic maps and geological surveys. For certain parts of the road and (transportation) corridor, we're not too sure about."
The next phase is getting on the ground to do soil and ground testing and find an economic route starting with a winter road.
"We've got a pretty fair idea what we think is the preferred route and have given (SNC-Lavelin) a clean slate to draw some conclusions."
Semple said all routes and modes of transportation to move supplies into the camp is being considered including road, rail, barges, "everything is being considered."
"Obviously the cost of getting material in and out of the site will have a big impact on the subsequent feasibility study on the mining part of the project."
Noront has a large 1,100-square-kilometre land package containing six potential economic deposits with possible huge tonnages, including its flagship Eagle's Nest nickel-copper-platinum group metals deposit and its Blackbird chromite project. The company has raised $25 million for exploration over the next 12 to 18 months.
Their camp is currently served by an ice strip on nearby Copper Lake during winter and by float plane and helicopter during the summer.
The results from the transportation study will have an impact on next year's scoping study on Eagle's Nest and Blackbird, which is a first phase performed on a mineral deposit to determine its economic viability.
The company intends to speak with project managers from De Beers Canada, which runs the Victor diamond mine 110 kilometres to the east, to compare notes on operating in this area.
The Victor Mine is serviced by a winter ice road but an all-season road from Attawapiskat is being considered. A big issue up there is finding a good source of aggregate close to the intended road.
Nakina is the closest community connected by paved road about 300 kilometres to the south.
The closest rail connection is the Ontario Northland which reaches Moosonee-Moose Factory on the James Bay coast.
Semple said the study isn't geared just to serve Eagle's Nest but all their properties at McFauld's Lake.
"We believe that with continued success, Eagle's Nest will be supported by winter road access," said Semple, and spin off enough cash to make a contribution for permanent infrastructure which would make the chromite and other deposits more economic.
"You have to look at it from a camp development perspective and believe there's more in the Ring of Fire than just Eagle's Nest and Blackbird."
In November, the company is the midst of a $90-million takeover bid for Freewest Resources, a fellow McFauld's Lake chromite exploration. Noront has a well-publicized merger-and-acquisition strategy to consolidate properties in the Ring of Fire.
The company has formed a First Nation advisory board recognizing that consultation and engagement is going to be an important part of their strategic planning "so we avoid mistakes and do things right the first time."
They have retained experts like Chief Glenn Nolan, a vice-president with the Prospectors and Developers Association of Canada, who can help negotiate impact benefit agreements and developing training and educational programs.
Noront has a memorandum of understanding with some local bands to conduct exploration.
www.norontresources.com
