Local mining expert says Noront's Ring of Fire deal a great sign

A Thunder Bay mining expert is optimistic Noront Resources’ $20-million deal to acquire Ring of Fire claims from Cliffs Natural Resources is a step in the right direction.

John Mason, project manager of mining services with the Thunder Bay Community Economic Development Corporation, says the unexpected sale was a pleasant shock to wake up to on Monday morning.

“I think really demonstrates Noront’s commitment,” Mason said.

It includes 103 claims owned by Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc., a deal which includes a 100 per cent stake in the Black Label chromite deposit, a 70 per cent interest in the Big Daddy chromite deposit and 85 per cent ownership of the McFauld’s Lake copper zinc resource.

The company will now hold 360 mining claims and 80,000 hectares of land, or about 65 per cent of the Ring of Fire, situated about 500 kilometres northwest of Thunder Bay.

“It means Noront now controls four of the six chromite discoveries in the Ring of Fire. So that’s spectacular. It’s about 200-million tonnes of chromite ore,” Mason said.

He added the company also has about 10 years of exploration work completed on its existing claims, which include the Eagle’s Nest nickel, copper and platinum deposit and the Blackbird chromite deposit.

The deal involves a seven-year, $22.5-million loan financed by Franco Nevada Corp., who will see a three per cent royalty payment from the Black Thor deposit and two per cent payments on all of Noront’s other claims in the region, with the exception of the pre-existing Eagle’s Nest claim.

Noront president and CEO Alan Coutts, in a release issued Monday morning, said the deal will help the company achieve its vision of becoming the leading resource developer in the region.

“This purchase consolidates the world-class discoveries made in the Ring of Fire,” Coutts said. “It also underscores Noront’s long-standing belief and commitment to the region. We have made significant investments in the Ring of Fire and our team has become experts in the region from both a technical and social point of view. We also believe in the considerable exploration upside which we are eager to develop.”

Mason said when Cliffs pulled out of the Ring of Fire in 2014, it quieted a lot of talk about the viability of the multi-billion projected, which for years has been touted as an economic saviour for Northern Ontario and the province as a whole.

“We’ve had this quiet period, when I don’t think we had many companies interested in the assets, but nobody took the lead. The fact of the matter is, with Franco Nevada … they’re banking on production downstream of ferrachrome and chromite to pull their money back and have their investment grow,” Mason said.

The question that remains, he added, is whether or not Noront can raise the money needed to develop their claims.

“I guess there are more questions than answers at this particular point, but it’s an exciting day,” Mason said.

There’s plenty of potential for impact on Thunder Bay.

The company still plans to develop the Eagle’s Nest first, which is good news locally for suppliers and potential workforce, Mason said.

He also expects he companies Thunder Bay office to grow as a result.

Asked about the possibility of a ferrachrome smelter being back in play for the city, Mason said it was a question worth asking. Cliffs originally named Sudbury as its preferred location.