Recent Drill Holes Return Encouraging Chromium, Nickel And Pge Mineralization on Freewest Option Property of KWG, Spider And Freewest Mcfauld’s Lake Area, Northern Ontario01 May 2008
Montréal, Québec, Canada – May 1, 2008 –KWG RESOURCES INC. (TSXV-KWG) (“KWG”), Spider Resources Inc. (TSXV-SPQ) (“Spider”) and Freewest Resources Canada Inc. (TSXV-FWR) (“Freewest”) are pleased to announce initial results and progress of the diamond drilling program on their jointly owned Freewest Option property (the “Property”), located approximately 15kilometres southwest of the McFauld’s Lake volcanogenic massive sulphide (“VMS”) occurrences and approximately 3.6 kilometres northeast of Noront Resources Ltd.’s (“Noront”) Eagle One Magmatic Massive Sulphide (“MMS”) discovery, in the James Bay Lowlands region of Northern Ontario. Massive chromite layers in a peridotite sill returned Cr2O3 grades as high as 35.6% over 7.5 metres, other layers show enrichment in Platinum and Palladium as high as 1.0 g/t (Pt + Pd) over 4.3 metres as well as enrichment in Nickel as high as 0.25% Nickel over 3 metres.
This diamond drilling program has recently been curtailed due to the arrival of spring in the James Bay Lowlands. Drilling will resume after breakup. The joint venture started the drill test work in the vicinity of their chromiumnickel- platinum group metal bearing peridotite previously discovered by Spider and KWG in 2006, which has many similarities to the new discovery (Eagle Two) of Noront in late February and drilled 7 holes for a total of 2,184 metres. Billiken Management Services Inc. (“Billiken”) was retained to complete the field program under the onsite supervision of Dr. Howard Lahti, P.Geo., of Fredericton, New Brunswick.
As stated in an earlier release (dated April 8, 2008) Hole FW-08-05 was designed to undercut hole the 2006 drill hole numbered FW-06-03, hole 5 was drilled at an inclination of -50, with an azimuth of 150 degrees, for a total depth of 327 metres. This hole was collared in overburden and entered granodiorite at 17.5 metres, then intersected peridotite at 46.5 metres. The hole remained in peridotite until it intersected massive chromite layers between 252.2 and 273.1 metres, each being around 1 metre wide, within the peridotite. This intersection was followed by a very thick massive chromite layer between 291.4 and 298.8 metres in fault (gouge) contact with underlying intermediate tuff (volcanic rocks). Pyrrhotite and chalcopyrite mineralization was observed in a short shear zone in peridotite between 69.1 and 69.3 metres. Closer examination of the core, and in light of regional exploration review and discussions with neighbouring explorers, resulted in a determination that the top of the chromite layered complex was likely to the SE, with bottom being towards the NW. The sulphide (pyrrhotite and chalcopyrite) mineralization observed at 69 metres core length, is in close proximity to the disconformably underlying granodiorite and may be related to a sulphide pool near the contact of the granodiorite and peridotite. Chromite layers could accumulate on top of this in the peridotite sill in a magmatic massive sulphide setting. This sulphide zone averaged 0.35% copper over 2.15 metres, confirming the presence of base metals near the base of the peridotite. Several additional weakly mineralized chromite enriched layers were noted in the peridotite between the sulphide zone and the previously described massive chromite layers. Assay results have recently been received for hole FW-08-05 summarized as follows:
|also incl.||Upper Cr4||291.4||298.9||7.5||24.4||35.6||0.11||0.09||0.03|
The above table of analyses suggests several chromite layers all of which have different metal content as would be expected in a layered complex. Some of the layers exhibit enrichment in chromium with many values in excess of 10% as high as 35.6% Cr2O3 over 7.5 metres, while others are enriched in platinum and palladium (Pt + Pd values as high as 1 g/t) and yet others are enriched in Nickel with values greater than 0.2%. Once additional assay information is available from the other holes drilled in this immediate area, the lithogeochemical signature of the individual chromite layers should be traceable from hole to hole and section to section to facilitate a better understanding of this layered complex.
SAMPLE PROTOCOL, SECURITY, ANALYSES
All drill holes were logged and samples referred to herein were completed and selected by Howard Lahti Ph.D., P.Geo, of Fredericton, New Brunswick. The samples were sawn in half, with half of the core retained for further work and/or storage at the main base camp. The split samples were placed into individual plastic bags, clearly labelled and tagged and then sealed in rice bags where a numbered seal lock was closed by Dr. Lahti. The sealed rice bags were placed in plastic sealed pails and shipped via bonded carrier to Activation Laboratory’s (ActLab) new facility in Thunder Bay, Ontario. The samples were then entered into ActLab’s system for preparation, processing and analyzing. The Thunder Bay facility of ActLab is currently a sample preparation lab, being upgraded to a full analytical laboratory, however during the construction and commissioning phase the samples are shipped via lab – lab bonded courier to ActLab’s main laboratory in Ancaster, Ontario. The samples all underwent multi-element analysis using Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), as well as Fire Assay Inductively Coupled Plasma (FA-ICP) for gold, platinum and palladium. Additional analysis using Instrumental Neutron Activation Analysis (INAA) was completed for all samples for their respective chromium grades in excess of 1% chromium. For more information on these analytical techniques please refer to Activation Laboratory website www.actlabs.com
UPDATE ON NEW DRILL HOLES
Four additional holes, numbered FW-08-08, FW-08-09, FW-08-10 and FW-08-11 have also been completed on the property.
Hole FW-08-08 was designed to test an electromagnetic and magnetic anomaly located approximately 1 kilometre to the northeast of the main chromite layered complex, along a magnetically inferred regional trend. This hole was located at local Grid co-ordinate L19+00E at 18+75N, drilled grid south at 150 degrees with an initial dip of -50 degrees for a total length of 270 metres. After 10 metres of overburden the hole encountered peridotite and remained in peridotite to a core length of 95 metres, when it entered serpentinized dunite with abundant interstitial magnetite veinlets, minor sulphides were observed along fractures and shear planes until 152 metres core length. The dunite rock unit was then found to be highly fractured and sheared with fault gouge and clay seams and remained as such until 161.3 metres. The hole then entered peridotite and remained in peridotite until the end of the hole at 270 metres, faulting was also noted from 212 metres onwards. The magnetic anomaly was explained by the presence of the magnetite enriched dunite, the conductivity anomaly may be related to the magnetite veinlets or the clay filled fault zone between 152 and 161.3 metres.
Hole FW-08-09 was designed to undercut hole FW-08-08 to determine if there was any sulphide mineralization located within the fault zone encountered in hole 08 at greater depths. Hole 09 was positioned at L19+00E at 18+75N, drilled grid south at 150 degrees with an initial dip of -73.5 degrees. After passing through 8 metres of overburden the hole entered peridotite and remained in this rock unit until 80.6 metres when it entered serpentinized dunite until 80.6 metres. Peridotite breccia was encountered between 80.6 and 84.5 metres followed by serpentinized dunite until 108.1 metres. This latter unit was strongly faulted and brecciated, then peridotite breccia was encountered between 108.1 to 109.7 metres. Additional faulting was observed as the hole passed from peridotite breccias into serpentinized dunite, the hole ended in serpentinized dunite at 176 metres. The presence of magnetite veinlets explained the high magnetic susceptibility and these veinlets if continuous and linked together may explain the conductivity observed in the ground and airborne geophysical surveys.
Hole FW-08-10 was designed to undercut previously drilled hole FW-06-04 to test two mineralized zones encountered in hole 4 that were anomalous in nickel, copper and platinum group elements (Pt and Pd). Hole 10 was positioned at local grid co-ordinate L14+00E at 12+07N, drilled grid south with azimuth of 150 degrees with an initial dip of -65 degrees for a total length of 312 metres. After passing through 7 metres of overburden the hole entered dolomitic limestone until 13.9 metres. The hole then entered granodiorite until 36.5 metres. Gabbro was encountered between 36.5 metres and 86.7 metres (changing to coarse grained around 63 metres). At 86.7 metres the gabbro changed to an olivine rich gabbro, grading into a peridotitic phase of the gabbro at 115.5 metres depth. The olivine gabbro-peridotite contained weak to moderate sulphide mineralization between 90 and 115.5 metres. At 115.5 metres the rock became heavily chloritized with silica flooding in the form of veins bearing sulphides (pyrite, pyrrhotite and minor chalcopyrite). At 170.6 metres the hole entered an intermediate to felsic tuff with variable sulphide content including pyrite, pyrrhotite and chalcopyrite and remained in this sulphide zone until 192.7 metres. Relatively barren intermediate to felsic tuff was encountered to end of hole at 312 metres. The subtle magnetic feature and moderate conductivity as interpreted from the ground and airborne surveys have been explained by the visual results of this drill hole.
Hole FW-08-11 was designed to undercut the mineralization encountered in hole FW-08-10 as well as hole FW-06-04. This hole was positioned on local grid L14+00E at 12+75N, drilled grid south with azimuth of 150 degrees with an initial dip of -65 degrees for a total length of 309 metres. After passing through 12 metres of overburden the hole entered gabbro and remained in gabbro until 90.2 metres. At 90.2 metres the gabbro changed to a coarse grained porphyritic gabbro until 152.5 to 156.2 when the gabbro was found to be in fault contact with intermediate volcanic. Between 156.2 and 175.6 metres the volcanics were found to have undergone extensive alteration (chloritization and silica flooding) and brecciation. Variable amounts of sulphide minerals including pyrite, pyrrhotite and chalcopyrite were noted in this section. At 175.6 to 182.7 the sulphide content increased, chloritization and carbonate alteration were noted. At 182.7 and extending to 189.7 metres the hole encountered coarse grained gabbro (porphyry), followed by chlorite schist between 186.7 and 195.7 metres, followed by gabbro until 231 metres. Another Intermediate volcanic unit was encountered between 231 continuing to the end of the hole at 309 metres. Sulphide mineralization was noted between 235.5 and 279 metres. The presence of two sulphide zones encountered in this hole is encouraging, these will be analyzed for their base and precious metal content. The sulphide accumulation encountered by this hole has explained the conductivity anomaly with weak magnetic signature.
Previous exploration work on the property included a diamond drill program resulting in the discovery of a layered chromite-bearing, nickel and platinum group element (PGE) enriched peridotite. A previous press release dated February 4, 2008 describes the analytical results. 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 elicits a strong magnetic signature. The magnetic high has dimensions of 400 metres by 400 metres and due to both these dimensions, and the peridotite setting similarity to Noront’s Eagle One MMS discovery (located 3.6 km to the SE), as well as the newly discovered Eagle Two sheared massive sulphide occurrence, (located 2 km to the SE of Eagle One) which also contains chromite layering; this occurrence has become a very attractive exploration target for additional work directed at chrome-PGE-nickel mineralization. Noront’s peridotite sill, announced on April 2, is rendered by airborne geophysics to continue to the east-north-east of their Eagle One occurrence towards and through the Freewest Option property of Spider and KWG as well as to the east-south-east of Eagle Two. The focus of the next round of drilling will be to further investigate this Cr-PGE-Ni occurrence and to continue the testing of several of the other anomalies on the property.
This press release has been prepared by management of Spider Resources Inc., which is the Operator of the joint venture with KWG during 2008, and has been approved for dissemination by Neil Novak P.Geo, President of Spider and a Qualified Person as such term is defined under National Instrument 43-101, who has reviewed and verified the technical information contained in this press release and has approved the contents of this press release. Spider Resources Inc. is a tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are currently 310,311,767 shares issued in Spider.
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