43.8 Million Tonnes Of 37.5% Cr2o3 Inferred To Date At Black Horse

03 Sep 2013

Toronto, Canada, September 3, 2013 – KWG Resources Inc. (TSX-V: KWG) (“KWG”) has received from Sibley Basin Group Geological Consulting Services Ltd. its geological report and calculation of the resources inferred from drilling data recovered to date from the Black Horse chromite deposit. The report dated August 29, 2013 was authored by Alan Aubut, P. Geo., under the provisions of National Instrument 43-101 and the resources inferred therein were not informed by any data analyzed from core samples recovered on the adjoining claim of Noront Resources Inc., access to which was declined to the author. The report provides in part:

Using the drill hole data available as of August 17, 2013, an Ordinary Kriged block model was created for the Koper Lake Project chromite deposit. The volume modelled is 0.7 km long and has a down dip extent of approximately 1.0 km with the top of the mineral zone as high as 280 metres below surface and has been traced down to a depth of approximately 1400 m below surface. All of the resources present have a low confidence in the estimate such that they can be classified only as Inferred Resources. The following table provides the identified Inferred Resources using a cut-off of 20% Cr2O3.

Classification Tonnes (millions) %Cr2O3
Inferred Resources 43.8 37.5


  1. CIM Definition Standards were followed for classification of Mineral Resources.
  2. The Mineral Resource estimate uses drill hole data available as of August 17, 2013.
  3. The cut-off of 20% Cr2O3 is the same cut-off used for the Kemi deposit as reported by Alapieti et al. (1989) and for the nearby Big Daddy chromite deposit (Aubut, 2012).
  4. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Using this 20% cut-off, there are 43.8 million tonnes at a grade of 37.5% Cr2O3 of Inferred Resources. No mineability and dilution studies have been applied to these resources and therefore they may not all be economically recoverable.

The drill hole spacing is 100 to 300 metres with several off-azimuth holes. To date only 6 holes have tested the mineral zone on the property and of these intersections most are very steep and cut the zone at a very oblique angle. As a result there is poor confidence in the lateral continuity of the mineralization to a degree that all of the defined resources can be classified only as Inferred Resources at this time.

It is recommended that further drilling be done to infill areas to better define the limits and continuity of the mineralisation, and to explore for nickel copper mineralisation along strike within the same ultramafic suite that hosts the chromite mineralisation. The estimated cost of this program is $6.68 million.

“This is a significant addition to the Ring of Fire’s chromite resource inventory”, said KWG President Frank Smeenk. “The grade is quite handsome and was derived using the same cut-off grade of 20% that was utilized to define the Big Daddy resource and the Black Thor resource. We have received a proposal to now complete a trade-off study on mining this from underground, using shared facilities with Noront’s underground mining of the Eagle’s Nest nickel and PGM deposit. That would seem a logical and productive next area of inquiry to move forward the understanding of the Ring of Fire’s economic viability.”

For further information, please contact:
Bruce Hodgman, Vice-President, KWG Resources Inc. at 416-642-3575 Ext103


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