VANCOUVER (miningweekly.com) – The largest landholder in the so-called Ring of Fire, an emerging base and precious metals mining camp in Northern Ontario, has signed an exploration and project advancement agreement with the Marten Falls First Nation (MFFN).
The accord stipulates compensation for work already completed on traditional lands and outlines a one-year process that will be used to negotiate a pre-development agreement for the Eagles Nest nickel/copper/platinum/palladium mine.
Under the terms of part of the agreement, and by fulfilling certain obligations and arrangements, MFFN becomes a shareholder of Noront. The company has agreed to issue to the First Nation 311 111 shares valued at C$0.225 apiece, the closing price on April 12, subject to approval by the TSX-V.
Noront’s first development project will be Eagle’s Nest, which has an 11- to 20-year life, capable of providing direct employment to more than 300. According to Noront, the project has the highest-value ore in the Ring of Fire and requires a more modest infrastructure commitment than the company’s other bulk chromite-focused projects.
The company expects mine construction to start in 2018, when building of an access road is expected to start, with first concentrate production expected to get under way in 2021.
The Eagle’s Nest deposit has proven and probable resources of 11.1-million tonnes grading 1.68% nickel, 0.87% copper, 0.89 g/t platinum, and 3.09 g/t palladium, as well as inferred resources of 9-million tonnes grading 1.1% nickel, 1.14% copper, 1.16 g/t platinum, and 3.49 g/t palladium.
Eagle’s Nest is expected to produce 234.2-million pounds of nickel and 19.2-million pounds of copper a year.