Chinese to study feasibility of Ring of Fire railway for KWG Resources proposed chromite mine

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KWG Resources Inc. says in a news release that it has entered a framework strategic cooperation agreement with China Railway First Survey & Design Institute Group Co., Ltd. (FSDI).

The two organizations have also executed a Conditional Bankable Feasibility Study Consultation Service Agreement (BFSCS). Under terms of the BFSCS the parties have agreed on the deliverables and timetable for FSDI to complete a Conditional Bankable Feasibility Study on a railroad from the mineral properties in Ontario’s Ring of Fire to a junction with the CN Railroad at Exton, Ontario.

The study will include:

  • Traffic volume estimates
  • Corridor alignment identification
  • Transportation/operating plan
  • Geological analysis
  • Track design parameters and recommended design
  • Subgrade design parameters and recommended design
  • Bridge and culvert design parameters and recommended design
  • Yard and siding design parameters and recommended design
  • Analytical study of land use evaluation
  • Rolling stock evaluation
  • Water supply and drainage design
  • Telecommunication functional design and specification
  • Signalling system functional design and specification
  • Electrical power supply design and specification
  • Building functional specification and design
  • Construction schedule
  • Detailed CAPEX
  • Financial and economic analysis and financing strategy
  • Environmental Impact assessment and mitigation plan

Plans, maps, profiles and sections to be included also:

  • Recommended Corridors and Preferred Alignment Plan
  • Recommended Corridors and Preferred Alignment Profile
  • Geographical Location Map of Preferred Corridor
  • Locomotive Routing Diagram
  • Geological Map of Project Area
  • Detailed Geological Map
  • Geologic Profile of Preferred Alignment
  • Key Bridge Location Plan
  • Key Bridge Site Plan
  • Comparison Drawing of Bridge Designs
  • Geologic Profile for Key Bridge Sites
  • Junction, Loading and Unloading Yard Layouts
  • Communication Network Map
  • General Layout of Signalling Equipment
  • Sketch of Existing Signalling Equipment at Junction and Rebuilding Plan
  • Power Supply Diagram for entire project
  • Remote Controlled Devices Electrical System Layout
  • Mechanical and Electrical Equipment Monitoring System Layout
  • Linear Construction Schedule Diagram

The BFSCS contemplates that the feasibility study will be completed by the end of 2016.

The company news release says that “as the various studies and plans are completed they will be shared with the Chiefs of the Marten Falls and Webequie First Nations for dissemination within their communities to facilitate consideration of KWG’s proposal to create an equal partnership with them in the integrated mining and transportation operations.

KWG says it has engaged CANARAIL Consultants Inc. to provide the specialized professional services and data that will be required of KWG as the client of FSDI. CANARAIL will provide current materials and services pricing in Canada together with design advice and assistance in complying with local environmental, social and other applicable standards to facilitate and expedite completion of the feasibility study.

The Agreements were facilitated by Golden Share Mining Corporation (TSX VENTURE:GSH), KWG’s agent in China, which will be issued 500,000 shares of KWG to compensate it for the value of and in lieu of costs incurred since January of this year in the course of the agency.

Established in 1953, FSDI holds 26 national Grade-A complex qualification certificates for engineering survey, design, supervision and consultation.
Over the past 60 years since establishment, FSDI has led the design and construction of over 48,000 km of railways represented by western China’s railway network, and undertaken over 5,000 km of high-speed railways which have been in operation or are under construction in China.

Image: KWG Resources Muketei Camp

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