KWG, Spider and Freewest Start Winter Exploration Program Mcfauld’s Lake Area, Northern Ontario
04 Feb 2008Toronto, Canada – February 4, 2008 – KWG Resources Inc. (TSXV-KWG) and Spider Resources Inc. (TSXV- SPQ) and Freewest Resources Canada Inc. (TSXV-FWR) are pleased to announce the start up of their 2008 winter exploration program on the Freewest option property (the “Property”), located approximately 15 kilometres southwest of the McFaulds Lake volcanogenic massive sulphide (“VMS”) occurrences of KWG and Spider and approximately3.6 kilometres northeast of Noront Resources Ltd.’s Eagle One Magmatic Massive Sulphide (“MMS”) discovery in the James Bay Lowlands region of Northern Ontario.
The joint venture partners (KWG and Spider) last completed field work on this property in 2006, that included a diamond drill program resulting in the discovery of a layered chromitite-bearing, nickel-enriched peridotite (See press release dated March 7, 2006). Assay results received later (see press release dated June 29, 2006) confirmed that the layering within this peridotite was enriched in chrome and nickel, as well as Platinum Group Elements (“PGE’s”). The 2006 winter exploration program was highlighted by the discovery of two massive chromitite layers hosted within peridotite, encountered while drilling ground geophysical anomalies targeting volcanic-hosted massive sulphide deposits (drill hole FW-06-03). The drilling returned the following assays:
|
Upper Chromitite Layer |
Lower Chromitite Layer |
|
22.70% chrome, 0.17 g/t platinum, 0.24 g/t palladium over 1.05 metres1 |
23.70% chrome, 0.21 g/t platinum, 0.46 g/t palladium over 0.60 metres1 |
1Assays performed by ALS Chemex of Vancouver, B.C. utilizing multi-acid ICP techniques for low and higher grades on samples selected, bagged and tagged and sent by bonded courier to the lab, under the supervision of Howard Lahti Ph.D. P.Geo. of Fredericton New Brunswick.
Subsequent re-analyses of selected samples and some additional assaying of the drill core from the 2 chromitite layers and intervening wall rock in the peridotite was later completed by Actlabs. The analyses yielded the following results:
|
2 Assays performed by Actlabs of Ancaster, Ontario, utilizing INAA for chrome, sodium peroxide fusion and ICP analysis for nickel and nickel sulphide fire assay technique for PGE’s on samples selected, bagged and tagged and sent by bonded courier to the lab, under the supervision of Howard Lahti Ph.D. P.Geo of Fredericton New Brunswick overseeing the lab to lab delivery of samples.
The additional assaying completed on the entire mineralized zone in the peridotite, including the upper and lower chromitite layers, yielded 4.05% chrome and 0.17% nickel over a core length of 16.85 metres. This chrome-PGE- nickel discovery was the first of its kind in the McFauld’s Lake area of the Sachigo Greenstone Belt. The host peridotite contains variable amounts of magnetite as disseminations and seams and is strongly magnetic. This magnetic-high feature measures 400 metres by 400 metres at its surface expression. Due to these dimensions and the peridotite-hosted similarity to Eagle One, the target is compelling for further sampling for chrome-PGE-nickel mineralization.
Under the terms of an agreement with Freewest (see press release December 19, 2005), Spider and KWG must spend an aggregate of $3.0 million on exploration over a four-year period to earn an initial joint 50% interest in the Property. They may earn a cumulative joint 60% interest in the Property by delivering a bankable feasibility study on any mineralization identified and subsequently a cumulative joint 65% interest, by arranging financing on behalf of Freewest to put the Property into commercial production. An initial $200,000 needed to be expended on the property by February 28, 2006. The early 2006 work program covered this initial earn-in allowing the option to continue where an additional $2.8 million needs to be expended prior to the end of October 2009 to complete the initial option requirement to earn 50% in this project from Freewest. KWG and Spider are in agreement and are sharing the cost of the current program on a 50:50 basis, each contributing an additional $1.08 million to the project for a total exploration expenditure of $2.16 million to be incurred in the current program (estimated to be completed by May 2008). Both parties are well funded to complete this program.
The initial field crew arrived on site in late January and commenced re-identification of the claim boundaries prior to starting a detail line-cutting program. A property-wide grid with 200 metre line spacing is currently being established, initially focussing on the western portion of the property covering the peridotite in the vicinity of 2006 drill hole FW-06-03, where the grid will be detailed at 100 metre spaced lines. Upon completion of the detail grid area, horizontal loop electromagnetic (HLEM), along with Magnetic and VLF electromagnetic ground surveying will be completed. Drilling is scheduled to start during February, once the initial geophysical surveying is complete. Initial holes will test the layered peridotite and explore this exciting occurrence for its MMS potential. Preliminary maps produced from the recent Aerotem2 airborne survey have been reviewed and are being used to plan the exploration of the remainder of the property. Several other similar anomalies are evident in this early interpretation, however, these need to be confirmed by review of the data in the final airborne survey report. The parties have retained Billiken Management Services Inc for the provision and management of all field operations.
Mousseau Tremblay, Ph.D., P.Geo, Chairman of KWG Resources Inc. and a Qualified Person as such term is defined under National Instrument 43-101, has reviewed and verified the technical information contained in this press release and has approved the contents of this press release.
For further information, please contact:
Frank C. Smeenk
President and CEO
Telephone: (416) 642-3575
Fax: (514) 866-6193
Michel Côté
Director
Telephone: (514) 866-6001 – Ext. 266
Fax: (514) 866-6193
Or visit our website: www.kwgresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Download In English PR1_en Feb 04 2008
Download En Francais PR1_fr Feb 04 2008
