This speech on "Ring of Fire:Challenges and Opportunities" was given at the annual North American Strategic Infrastructure Leadership Forum in Washington D.C. on October 12, 2011.

1. “Ring of Fire: Challenges and Opportunities”
North American Strategic Infrastructure Leadership Forum
Washington, D.C. , October 12, 2011

2. Agenda
1. Location
2. Scope of Ring of Fire Opportunity
3. Value of Historic Mineral Production in North America
4. Ring of Fire Discoveries
5. Infrastructure Components of Ring of Fire
6. Current Status of Ring of Fire Projects
7. Native Canadian Community: Planning and Consultation
Considerations
8. Forecast

3. Location

5. Scope of Ring of Fire Opportunity

6. Scope of Ring of Fire Opportunity
 Black Thor and four adjacent chromite deposits make up largest deposit of chromite in
North America with potential production life of 100 years and gross value of $30-50 billion.
 Chromite mined to produce ferrochrome for stainless steel industry.
 One of the most significant mineral developments in Central Canada in over a century.
 Historic opportunity to plan for economic development:
1. Strategic infrastructure
2. Partnerships and Native Canadian engagement
3. Value-added manufacturing
4. Land use planning
5. Training/employment

7. Value of Historic Mineral
Production in North
America

8. RING OF FIRE
$30-50B
• Ontario is an exploration and mining destination; $10B
annual contribution to economy.
• 60% of world’s mine financings are Toronto-based.
• Active miners in Ontario include: Barrick Gold, Goldcorp
Inc., Debeers, Vale and Xstrata.

9. 173,000
square
miles
164,000
square
miles

10. Ring of Fire Discoveries

12. Ring of Fire Discoveries
 $155 M spent on exploration in
Ring of Fire in last 5 years.
 35 exploration companies active,
lead by Cliffs Natural Resources
Inc. (CLF- S&P 500 Index).
 2000 square miles staked – one
of largest staking rushes in
Canadian history.

13. Largest and first Ring of Fire Discoveries
deposit to be
developed by
open pit
methods. 69.5 mt
and grading
31.9% Cr2O3.

14. Ring of Fire Discoveries
• Wet, remote, no infrastructure.
• All activity is supported by
fixed wing or helicopter.

15. Ring of Fire Discoveries
Importance of Chromite
 Oxide mineral Cr2O3.
 Strategic metal – essential for
industry and national security but
North America has little/no
supply.
 Used as an alloy to produce
stainless steel (there is no
substitute).

16. Infrastructure Components of
Ring of Fire

17. Railways and Major Roads in Central Canada

18. Infrastructure Financing Requirements of the
Ring of Fire
Key Components
 Open pit mine and concentrator on site.
 Transportation corridor, rail and all weather roads being
assessed.
 Ferrochrome Processing Facility (FPF) at a location near north,
requiring 300MW electricity.

19. Infrastructure Financing Requirements of the
Ring of Fire
Key Considerations
 Transportation requirements include
rail/road options.
 I.e. North/South Corridor – 206
miles.
 Electrical transmission – mines and
remote communities.
 Enhancing community infrastructure:
water treatment, housing, airports.

20. Current Status of Ring of Fire Projects

21. Current Status of Ring of Fire Projects

22. Current Status of Ring of Fire Projects
 Cliffs Natural Resources Inc. commenced environmental assessment on
Black Thor.
 Pre-feasibility study, environmental studies, bulk
sampling/metallurgical testing.
 Noront Resources Ltd. (NOT – TSXV) completed metallurgical testing at
Eagles Nest – drill results AT12 and assessment of Blackbird deposit.
Baosteel Corp. China (Shanghai Stock Exchange), now strategic investor.

23. Current Status of Ring of Fire Projects
• KWG Resources (KWG – TSXV) continued geotechnical assessment of
North/South rail corridor.
• KWG Resources filed application with Public Private Partnerships Canada
to assist in funding.
• Total railway cost $1.984 Billion.
• Applied for license to construct and operate short line railroad.

24. Native Canadian Community: Planning and
Consultation Considerations

25. Native Canadian Communities
 Communities of Matawa tribal council are
directly impacted.
 Includes five remote communities located in
the far north and four road access
communities.
 Chromite and nickel discoveries fall within the
traditional areas of remote Matawa
communities.
 Infrastructure corridor and location of
processing facilities would transect a broader
group of Native Canadian communities as well
as intersect with Métis and municipal interests.

26. Forecast

27. Employment Forecasts
2200 – 5500 construction jobs. 1200 direct operating jobs.
4200 indirect/induced.

28. Comparative Construction Costs
Ring of Fire (Forecast) Rest of Canada
$ 3.5 - $4.6 Billion. $200 Million – Musselwhite Mine, ON.
Mine, railroad, power, $750 Million – Ekati Mine, NWT.
road, mill, ferrochrome $1.0 Billion – Victor Mine, ON.
processor.
$1.3 Billion – Detour Gold, ON
(forecast).
$1.3 Billion – Diavik Mine, NWT.

29. Aggressive Timelines
 Environmental Assessment 2012 - 2013
and feasibility studies
2013
 Production decision
 Construction 2013 - 2015
 Production 2015 - 2016

30. “Based on the history of other world class mineral
deposit developments, only 20% of the wealth has
been found to date in the Ring of Fire.”
- Dr. Jim Franklin

31. For more information please contact:
Steve Demmings, CEO
John Mason, Project Manager, Mining Services
Thunder Bay Community Economic Development Commission (CEDC)
P.O. Box 800
Thunder Bay, Ontario
CANADA P7C 5K4
General Office: 807 625-3960
Toll Free: 1-800-668-9360
Fax: 807 623-3962
Email: develop@thunderbay.ca
Website: www.thunderbaycedc.ca