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KWG Resources Inc. plans to conduct a feasibility study on constructing a rail line from a northern Ontario chrome deposit to Exton, Ontario. The line would be built along land claims held by subsidiary Canada Chrome Corp. that KWG Resources believes are suited for railroad right of way.

Canada Chrome and its engineering firm Krech Ojard & Associates recently contracted Nuna Logistics Ltd. to develop logistics scenarios and cost estimates for a rail line. KWG Resources plans to incorporate Nuna's recommendations into a feasibility study.

The proposed line would support the viability of the “Big Daddy” chrome deposit, KWG Resources officials believe.

“We have an opportunity to demonstrate the economics of using a rail line to transport ore from the Ring of Fire to market,” said KWG Resources President Frank Smeenk in a prepared statement. “There are more than a few mineral discoveries around that are not economical because they have no transportation option."