Post by Franko10 ™ on Sept 16, 2004 7:50:12 GMT -5
KWG RESOURCES INC. ("KWG") and joint venture partner Spider Resources Inc. ("Spider") report the discovery of 11 new diamond bearing outcrops on their jointly-owned, 45 square kilometer Wawa property in northern Ontario, bringing the total number of individual diamond bearing outcrops discovered by the joint venture to twenty (20). Nine of these occurrences occur along a five-kilometer corridor which intersects a diamondiferous diatreme breccia. A total of 79 diamonds were recovered in 11 regional exploration samples (collectively weighing 165 kilograms), of these two (2) diamonds are classified as commercial size diamonds (dimension in excess of 1.0 mm) and a further 11 are classified as macrodiamonds (dimension in excess of 0.5 mm). These sample results are only partial.
Test results from the third and final mini-bulk sample taken on the eastern extremity of the Sandor occurrence have also been received. One diamond was recovered, with dimensions 0.94 mm by 0.78 mm by 0.75 mm from 2.41 tonnes of sample. Sample BK1 is located 1.0 kilometer west of sample location BK3 and 1.075 kilometers west of BK2, all three-sample sites are located within the Sandor structure. The three mini bulk samples were tested only for macrodiamond and commercial diamond content, results are as follows:
SAMPLE WEIGHT (TONNES) COMMERCIAL STONES MACRO-DIAMONDS
BK3 2.724 8 3
BK2 2.476 3 5
BK1 2.410 0 1
Thirty-five (35) separate samples of outcropping bedrock have undergone caustic dissolution for diamond content at the Kennecott Laboratory in Thunder Bay, Ontario. Each sample was split to weigh approximately 15 kilograms; the remaining portion of each sample is stored for further work if required.
A plot of all diamond occurrences outline two further mineralization corridors which correlate with east - west trending structures. A northern structure (four separate occurrences) is located 3 kilometers north of the Sandor occurrence. This corridor extends from the north end of McCormick Lake to the Magpie Mine road, a distance of 3 kilometers; an exposure on the Trans-Canada highway is represented by new sample LAL-12 (2001) for which 15 kilograms of rock yielded 13 diamonds. The largest diamond measured 1.57 mm by 1.02 mm by 0.66 mm.; another diamond from this sample is classified as a macrodiamond, the remaining are microdiamonds. The southern structure located approximately 3.5 kilometers south of the Sandor occurrence is defined by six (6) separate diamond occurrences, in a roughly east west trending zone currently estimated at 75 meters in length. Additional mapping and sampling is required in these two areas to accurately delineate each structure.
Planning for additional exploration work on this exciting project is currently underway. An in depth sampling program proposed on the main Sandor structure involving overburden stripping as needed, followed by mapping and sampling to determine continuity of rock type and diamond content. Additional prospecting and sampling will be undertaken on the newly discovered northern diamond bearing occurrence as well as the southern diamond occurrence in Menzies Township.
In addition to the Wawa project, KWG and Spider are involved in a multi-year joint venture with De Beers Canada Exploration ("De Beers) in the Spider #3 area of northern Ontario, where De Beers has agreed to expend $5.5 million over six years to earn a 60% interest. De Beers advises that they are commencing a drilling program on this project. KWG and Spider's other main area of exploration is the Spider #1 area of northern Ontario, where they have located seven (7) diamond bearing kimberlites, that are in various stages of exploration.