Spider And KWG Announce Discovery Of A New Kimberlite On Diagnos Initiative Project “Ring Of Fire” Area29 Jun 2010
Spider Resources Inc. (“Spider” – TSXV:SPQ) and KWG Resources Inc. (“KWG” – TSXV:KWG) are pleased to announce the discovery of a new kimberlite located on the eastern edge of the “Ring of Fire” exploration area and in the vicinity of the Kyle swarm of kimberlites. The new kimberlite is called Kyle #6 and was hidden beneath 35 metres of Paleozoic carbonate cover rock including limestone and dolomite. As of 7 am this morning vertical Hole DGN-10-01 intersected diatreme facies kimberlite between 35 metres and 111 metres downhole. Drilling continues with one drill rig on this new discovery. A second hole is currently being planned to continue the test of this new kimberlite. Samples will be sent for diamond content testing upon completion of the program. The Diagnos Initiative project is funded equally by Spider and KWG on a 50:50 basis.
The target anomaly was prioritized for acquisition and follow-up several years ago using a combination of regional airborne fixed wing magnetic geophysical methodology, local helicopter magnetic surveying, as well as a regional review by Diagnos Inc. (“Diagnos” – TSXV:ADK) using their proprietary Computer Aided Resource Detection System “CARDS” methodology for screening out and prioritizing anomalies. For more information on CARDS please follow the link to Diagnos website www.diagnos.com
The current drill test is a follow up to a ground magnetic geophysical program completed in 2006 as well as a recent horizontal loop electromagnetic “HLEM” program completed about a week ago. The HLEM program concluded that the distinct magnetic feature was not conductive, ruling out the possibility of sulphides being the cause of the magnetic signature, providing more confidence in the initial interpretation of kimberlite source. Billiken Management Services Inc. of Toronto, Ontario is providing services for the program, under the field supervision of Patrick Chance M.Sc. P.Eng., an independent qualified person as defined by National Instrument 43-101.
About Spider Resources Inc.
Spider is the “Spark that set off the Ring of Fire”. Spider, the pioneer explorer in the James Bay Region of Northern Ontario since 1993, was responsible for the discovery of eight kimberlites (1994-95), ten VMS occurrences, including two VMS deposits (2002-2006), and one chromite deposit (2006). Regional geophysical surveying and other exploration efforts as initially conducted by Spider formed the exploration data-set that lead to the first discovery of chromite in the area in February 2006, in a peridotite intrusion, and about a year later lead to the eventual discovery of additional chromite deposits and related Magmatic Massive Sulphide Nickel Deposit by others. Spider is a Tier 2 Canadian exploration company, quoted for trading on the TSXV under the symbol SPQ. There are currently 568,520,113 shares issued in Spider. Spider has approximately $10.6 million in working capital at present with approximately $1.7 million earmarked for flow-through expenditures in the current year.
For further information concerning Spider Resources Inc., please contact:
About KWG Resources Inc.
KWG is a mineral exploration company with extensive claim holdings in the James Bay Lowlands of Northern Ontario, Canada, where important discoveries of nickel and chromium have been made recently in the Ring of Fire. KWG has an equal participating interest in a large claim block in the central part of the discovery area, with Spider. The co-optionees are developing the Big Daddy Chromite Deposit adjacent to the Black Thor and Black Label chromite discoveries of Freewest Resources Canada Inc. In addition, KWG holds a 1% net smelter royalty in all three prospects and has created Canada Chrome Corporation to pursue the development of them.
For further information concerning KWG Resources Inc., please contact:
Founded in 1998, DIAGNOS is a publicly traded Canadian corporation with a mission to commercialize technologies combining contextual imaging and traditional data mining thereby improving decision making processes. DIAGNOS offers products, services, and solutions to clients in a variety of fields including natural resources, healthcare, and entertainment.
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