KWG RESOURCES INC., SPIDER RESOURCES INC. AND FREEWEST RESOURCES CANADA INC., PROVIDE EXPLORATION UPDATE ON
THE BIG DADDY CHROMITE PROSPECT
· Hole FW-09-29 intersects 74.9 metres of massive chromite mineralization.
· Metallurgical tests conclude that >40% Cr2O3 can be considered direct shipping ore with 1.9 Cr:Fe ratio
TORONTO, ONTARIO – October 14, 2009 –KWG Resources Inc. (KWG:TSX-V) (“KWG”), Spider Resources Inc. (SPQ:TSX-V) (“Spider”), and Freewest Resources Canada Inc. (FWR:TSX-V) (“Freewest”) are pleased to provide an exploration update on the Big Daddy Chromite property.Eight drill holes, 2,073 metres, have been completed, and have testedthe Big Daddy Chromite prospect (a magmatic chromium deposit type)along its geophysically inferred strike length to Line 20 East, and to a vertical depth of approximately 180metres. The total amount of drilling in this campaign is estimated to be 11,000 metres in 28 drill holes. The drill program is deigned to test the entire geophysically inferred strike length on the property to a depth of +/- 250 metres.
Drill Program
Drilling has progressed significantly since the last report of October 1, 2009, where holes FW-09-24 and 25 were reported on section 1400 metres East. Drill spacing for this first pass of drilling was established at 200 metres, testing the entire geophysically inferred strike length to section 2000 metres East. Drilling has successfully encountered chromite mineralization in each section. Since the start of the project in 2006 chromite mineralization has been established from Line 900 metres East to and including Line 2000 metres East, for a strike length of 1100 metres thus far. Additional drilling is underway to the Northeast in an area where the geophysical expression of the chromite mineralization appears to be disrupted by faulting.
Summary of Drill results
| DDH ID | Completed | Line | Sta # | Azimuth | Dip | Length | Mineralization Highlights |
| FW-09-24 | Sep 26 / 09 | 14 E | 1700 N | 150 | 50 | 219 | 64.43 - 86.0 Intermittent Cr beds 86.0 - 101.85 diss Cr in peridotite 101.85 - 132.2 Massive Cr |
| FW-09-25 | Sep 30 / 09 | 14 E | 1800 N | 150 | 50 | 339 | 151.9 - 200.75 diss Cr + occ Cr bed in Per 200.75 - 213 fault 213.0 - 232.39 diss Cr + occ Cr beds in Per 232.39 - 270.35 Massive Cr |
| FW-09-26 | Oct 2 / 09 | 16 E | 1700 N | 150 | 50 | 207 | Cr zone displaced by fault 166.55 - 178.5 fault in Pyx with trace py, po, cpy |
| FW-09-27 | Oct 6 / 09 | 16 E | 1800 N | 150 | 50 | 321 | 171.0 - 173.3 diss Cr in Dunite 173.3 - 186.8 Massive Cr 186.8 - 189.0 diss Cr in Dunite 189.0 - 208.0 diss + intermttent Cr in Dunite 208.0 - 247.0 Massive Cr |
| FW-09-28 | Oct 5 / 09 | 18 E | 1745 N | 150 | 50 | 207 | 39.0 - 60.5 Massive Cr 120.0 - 137.3 fault with py, cpy |
| FW-09-29 | Oct 10 / 09 | 18 E | 1850 N | 150 | 50 | 368 | 70.1 - 117.35 intermittent Cr beds in Dunite 117.35 - 136.0 Massive Cr 136.0 - 148.0 diss Cr in Dunite 226.0 - 230.7 Semi Massive - Massive Cr 231.45 - 233.0 Semi Massive Cr 234.75 - 244.3 Massive Cr 248.6 - 323.5 Massive Cr |
| FW-09-30 | Oct 11/09 | 20 E | 1750 N | 150 | 50 | 77 | 23.7 - 33.8 Massive Cr |
| FW-09-31 | Oct 11/09 | 20E | 1850 N | 150 | 50 | 335 | 205.4 - 235.9 intermittent Cr beds + diss in Dunite 235.9 - 264.5 Massive Cr (dyked off??) |
Abbreviations: Cr (chromite), py (pyrite), cpy (chalcopyrite), po (pyrrhotite), diss (disseminated), Per (peridotite), Pyx (pyroxenite).
Hole FW-09-26 entered a fault zone in pyroxenite between 9 and 45 metres depth and then continued in an altered pyroxenite to the end of the hole at 207 metres. No significant chromite mineralization was encountered.
Hole FW-09-27 was designed to step back and undercut Hole FW-09-26. This hole encountered massive chromite between 173.3 and 186.8 metres (13.5 metres massive chromite), followed by a second zone of massive chromite mineralization between 208 and 247 metres (39 metres of massive chromite).
Hole FW-09-28 was designed as a 200 metre northeasterly step out from holes FW-09-26 and 27. The hole encountered massive chromite between 39 and 60.5 metres (21.5 metres massive chromite).
Hole FW-09-29 was designed to undercut Hole FW-09-28. Chromite mineralization was encountered between 117.4 and 136 metres (18.6metres of massive chromite), followed by another zone of massive chromite with narrow beds of semi-massive chromite that was encountered between 234.8 and 244.3 metres (massive chromite over 9.5 metres), followed by a very thick bed of massive chromite between 248.6 and 323.5 meters (74.9 metres of massive chromite).
Hole FW-09-30 was designed to test a 200 metre northeasterly step out from Holes FW-09-28 and 29. At the bedrock – overburden interface of 23.7 metres, the hole immediately entered massive chromite and stayed in this until 33.8 metres (10.1 metres of massive chromite subcropping).
Hole FW-09-31 was designed to be a 200 metre step out from Holes FW-09-28 and 29 and to undercut Hole FW-09-30. Between 235.9 and 264.5 metres, massive chromite was encountered (28.6 metres of massive chromite).
True widths of the chromite mineralization have yet to be determined, as this is typically done once the geometry (attitude, dip, strike) of the mineralized body is determined. The systematic drill pattern as planned is designed to better understand the Big Daddy Chromite Prospect along its entire strike length at regular intervals, the chromite mineralized intersections are quite variable due to the geological nature of the intrusion. Once the current program is completed, an estimate of true width will be provided. At current rate of drilling, it is anticipated that the field portion of the program will be completed by early December.
Metallurgical Update
The companies arepleased to report that it has received the results of scoping level mineral beneficiation test work conducted by SGS Lakefield Research Limited and a geometallugical study conducted by Cliffs Natural Resources on the Big Daddy Chromite Prospect. These early stage studies will guide both ongoing sampling requirements during drilling and subsequent resource modelling and beneficiaton studies.
The result of conducting gravity separation test on eight samples covering the range from low grade to high grade ledto the following conclusions;
- Some of the massive chromite has a grade >40% Cr2O3 which can be considered direct shipping ore with 1.9 Cr:Fe ratio
- medium grade ore, 20-40% Cr2O3, can be upgraded to saleable material
- The average of 110 SEM-EDS analyses of chromite grains by Cliffs are; 7.4% MgO, 12.64% Al2O3, 0.54% TiO2, 51.29% Cr2O3, and 27.46% FeO.
- grind size needs to be optimized in future testing to improve recoveries at low and medium grades
A sulphide flotation test of the chromitite produced a concentrate containing 14 g/t palladium, 3 g/t platinum, and 1 g/t gold. An evaluation of the distribution of all 6 PGE's is underway. The minerals sperrylite (PtAs2) and stibiopalladinite (Pd3Sb) and an unkown compound of Os-Ru-As-S were identified by Cliffs in a hanging wall pyroxenite sample containing 2.24 g/t palladium and 2.36 g/t platinum over 0.5 metres.
Technical Advisory Committee
Spider’s VP Exploration Jim Burns P.Eng., along with KWG’s VP Exploration Moe Lavigne M.Sc., P.Geo. are Qualified Person’s responsible for their respective company’s disclosure and have read and approve of this press release, along with Don Hoy M.Sc., P.Geo. representing Freewest. These three individuals are members of the Technical Committee for the project, along with Neil Novak P.Geo., President of Spider, Mac Watson P.Eng., President of Freewest and Richard Fink, Director of KWG.
About KWG Resources Inc.
KWG Resources 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 joint venture interest in a large claim block in the central part of the discovery area, with Spider Resources Inc. The joint venture is developing the Big Daddy Chromite Prospect adjacent to the Black Thor and Black Label chromite discoveries of Freewest Resources Canada Inc. KWG holds a 1% net smelter royalty in all three prospects and has created Canada Chrome Corporation to pursue the development of them.
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