KWG Resources is an exploration stage company that is participating in the discovery, delineation and development of chromite deposits in the James Bay Lowlands of Northern Ontario, including 1,024 hectares covered by four unpatented mining claims (Fancamp Claims) approximately 280km north of Nakina, Ontario, which contains the Black Horse chromite deposit, named the “Black Horse Project” and 1,241 hectares covered by seven unpatented mining claims (Big Daddy Claims) approximately 280km north of Nakina, Ontario, which contains the Big Daddy chromite deposit, named the “Big Daddy Project”. The Corporation has a 30% interest in the Big Daddy Project.
KWG Resources is now the Operator of the Black Horse Joint Venture after it had acquired a vested 50% interest through Bold Ventures Inc. which is carried for 10% (20% of KWG’s equity in the JV) by KWG funding all exploration expenditures. The Corporation had the right to acquire: (i) up to an 80% interest in respect of chromite contained in the Koper Lake Project; and (ii) up to a 20% working interest in respect of the non-chromite minerals contained in the Koper Lake Project.
On September 1, 2022, KWG Resources closed a transaction with Fancamp Exploration Ltd. whereby KWG Resources purchased all of Fancamp’s interest in the Koper Lake claims which consist of 4 “legacy” mining claims. Fancamp retains a 2% Net Smelter Return Royalty. Under the pre-existing KWG-Bold Ventures Inc. Joint Venture agreement, and the Bold-Fancamp Option Agreement, Bold retains a 10% carried interest in chromite and a 40% working interest in all other metals found within the claims. Bold also possesses a Right of First Refusal on a 1% NSR covering all metals found within the claim group.
KWG RESOURCES’ CHROMITE MINERAL RESOURCES IN THE RING OF FIRE
|Deposit||Owner||% Owned By KWG||Tonnes (Millions)||Category||Grade %Cr203||Cut-off %Cr203||43-101 Report|
|Big Daddy||KWG-Wyloo Metals||30%||23.3||Measured||32.1||20%|
|Big Daddy||KWG-Wyloo Metals||30%||5.8||Indicated||30.1||20%|
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Transport of raw ore from a small footprint underground mine in the “wetlands” to an integrated chromite reduction facility located on a brownfield site not only optimizes the economic sustainability, but also the development’s environmental and social sustainability.
KWG Resources is seeking its social licence for these developments by inviting the most affected First Nations to be both partners in and owners of the development.