Cliffs Natural Resources Inc.
) has entered into an Exploration Memorandum of Understanding (MOU)
with Tl'azt'en Nation and First Point Minerals Corp. for exploring
the Decar nickel-iron alloy project in British Columbia, Canada.
The MOU establishes a set of rules that will govern the working
relationship between the parties for carrying out exploration
activities related to the Decar project.
In addition, the MOU has provisions for negotiating a possible
Impact and Benefits Agreement in future if the project progresses
into the mine development phase. The project is presently in the
preliminary economic assessment phase and there are a number of
important benchmarks to be met if it is to be developed into a
The Decar area is around 239 square kilometers in size,
including a portion of the Mount Sidney Williams
ultramafic/ophiolite complex. Moreover, the property's location has
infrastructure such as rail, road and power available nearby.
Nickel-iron alloy mineralization has been discovered in the area
through diamond drilling and assaying. However, if the project is
to evolve into the mine development phase, key criteria such as
pre-feasibility, feasibility and environment assessment approvals
are required to be attained. Cliffs holds the option to the Decar
property, under an option agreement with First Point Minerals Corp.
which was penned between the parties in late 2009.
Cliffs is pushing its expansion projects to increase its
reserves. It intends to spend approximately $1 billion in 2012 to
increase its mining and transportation capacity globally. Hence,
the signing of the MOU is a step taken in accordance with the
growth objectives being pursued by the company.
We currently have a long-term (more than 6 months) Neutral
recommendation on Cliffs. The company, which competes with
CONSOL Energy Inc.
Alpha Natural Resources, Inc.
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating.
ALPHA NATRL RES (ANR): Free Stock Analysis
CLIFFS NATURAL (CLF): Free Stock Analysis
CONSOL ENERGY (CNX): Free Stock Analysis Report
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