KWG Files Updated Ni 43-101 Technical Report For The Koper Lake Project Black Horse Chromite Resource Now 77.2 Million Tonnes @ 35.1%03 Jun 2014
Toronto, Canada, June 3, 2014 – KWG Resources Inc. (TSXV: KWG) (“KWG“) has today filed an updated geological report and calculation of the resources inferred from drilling data recovered to date from the Black Horse chromite deposit. The technical report, entitled “National Instrument 43-101 Technical Report, Koper Lake Project Chromite Deposit, McFaulds Lake Area, Ontario, Canada, Porcupine Mining Division, NTS 43D16, Updated Mineral Resource Estimation Technical Report, UTM: Zone 16, 548460m E, 5842511m N, NAD 83”, is dated May 28, 2014 (the “Koper Lake Report”) and was authored by Alan Aubut, P. Geo., under the provisions of National Instrument 43-101. The resources inferred in the Koper Lake Report were additionally informed by three drill intercepts generated during the winter 2014 drilling campaign and by the intercept in hole FNCB-13-031 which was not used in the 2013 calculation due to it being located 50 metres west of the western claim boundary on the adjoining claim of Noront Resources Inc.
The inferred resources contained in the Koper Lake Report supersede those reported in KWG’s press release dated May 13, 2014. The Koper Lake Technical Report can be found on KWG’s SEDAR profile at www.sedar.com.
The Koper Lake Report provides in part:
Using the drill hole data available as of May 11, 2014, including new drilling done in early 2014, an Ordinary Kriged block model was created for the Koper Lake Project chromite deposit. The volume modelled is 0.6 km long and has a down dip extent of approximately 1.0 km with the top of the mineral zone as high as 350 metres below surface and has been traced down to a depth of approximately 1400 metres 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|
- CIM Definition Standards were followed for classification of Mineral Resources.
- The Mineral Resource estimate uses drill hole data available as of May 11, 2014.
- 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).
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Using this 20% cut-off, there are 77.2 million tonnes at a grade of 35.1% Cr2O3 of Inferred Resources. Due to the uncertainly in the estimate and that no mineability and dilution studies have been applied to these resources, they may not all be economically recoverable.
The drill hole spacing is 100 to 300 metres with several off-azimuth holes. To date, only 8 holes have tested the mineral zone on the property and most of these intersections 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.
The deposit remains open on strike to the northeast and at depth. The increase in the size of the inferred resource is the result of thickening of the deposit with depth. The true width of the deposit ranges from approximately 100 metres at the southwestern end to about 25 metres in the northeastern half. The southwestern half of the deposit is dominantly layered chromitites while the northeastern half is dominantly massive chromitite. It is recommended that initially, further drilling be done to better define the limits and continuity of the mineralisation in the northeastern half, and secondly by infill drilling. The estimated cost of the initial program is $3.63 million.
M.J. (Moe) Lavigne, P.Geo., is the Qualified Person (QP) with respect to this project and has reviewed and approved the related information within this press release. Alan Aubut, P.Geo., author of the Koper Lake Report, has reviewed and approved the related information within this press release.
About KWG:KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG has also acquired interests in provisional patents including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.
For further information, please contact:
Bruce Hodgman, Vice-President, KWG Resources Inc. at 416-642-3575 Ext103
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Cautionary Note Regarding Forward‐Looking Statements: This Press Release contains or refers to “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. All information, other than information regarding historical fact that addresses activities, events or developments that KWG believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this Press Release is subject to a number of risks and uncertainties that may cause the actual results of KWG to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, KWG. Should one or more of these risks and uncertainties, such as: the actual results of current exploration programs; risks normally incidental to exploration and development of mineral properties; the uncertainty of mineral resources estimates; uncertainties in the interpretation of drill results; the possibility that future exploration, development or mining results will not be consistent with expectations; the grade and recovery of ore varying from estimates; the general risks associated with the mining industry; adverse changes in commodity prices; currency and interest rate fluctuations; increased competition and general economic and market factors occur, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward‐ looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward‐looking statements.