Post by Franko10 ™ on Sept 16, 2004 10:32:06 GMT -5
Diagem reports that KWG Resource Inc. (“KWG” – TSXV), a company in which Diagem currently has a 33.76% interest, and joint venturer partner Spider Resources Inc. ('Spider') announce the results of the second drill hole of the winter drilling program. Drill Hole McF-04-21, intersected a 13.8 meter section of massive sulphide mineralization that returned the following results:
From (m)
To (m)
Interval (m)
% Cu
% Zn
Au (g/t)
Ag (g/t)
220.55
234.36
13.81
5.5
0.34
0.52
15.4
INCLUDING:
228.96
233.59
4.63
10.4
0.86
0.68
30.7
As previously announced (February 10, 2004), the first hole in the current program (McF-04-20) cut the massive sulphide mineralization at a vertical depth of 75 meters, that was 50 meters above the initial discovery hole McF-03-18 (previously reported November 18, 2003), that intersected the mineralization at a vertical depth of 125 meters. This current hole is the third on section 8+00NE and intersected the mineralization at a vertical of 165 meters.
The drill program is continuing on the McFauld's #3 occurrence with drilling underway on the 9th hole of this program. To date, eight holes totalling 1447.5 meters have been completed. An additional two holes undercutting hole McF-04-21 on Section 8+00 NE and McF-04-27 and 28 on Section 8+50NE are currently planned to test the northeasterly plunge of the mineralization.
Thus far in the program, mineralization of potential economic interest has been encountered in all the completed holes. However while the mineralized zone appears to thin towards the southwest it is plunging northeast and maintaining significant widths in that direction. Line cutting followed by ground geophysical surveying is continuing on selected AEM anomalies identified in last summer's airborne geophysical program. These anomalies are being prioritized as drill targets for later on in the program.
The current drill program has been financed by Diagem International Resource Corp. ('Diagem'), through a $2.0 million investment into the project. Once these funds have been expended, Diagem will have earned an 8% interest in the joint venture; however this 8% interest can be converted at the request of any of the parties into an equity interest in KWG and Spider.
All analytical results reported herein are from samples selected during the normal logging process of the drill core as conducted by site geologist, Roger Thomas, M.Sc. (P. Eng.), an independent qualified person. Samples were individually bagged and delivered under bond from the field location to ALS Chemex's sample preparation facility in Thunder Bay, Ontario where they were crushed, split and then sent via bonded air courier to the ALS Chemex Laboratory in Vancouver, B.C. where the samples were analyzed using ME-MS61 (4 acid digestion - ICP finish) multi-element analysis. All samples reported as an 'over-limit'result are reprocessed internally by the lab using AA-62 (4 acid digestion - AA finish) for high-grade analysis.
KWG is a junior mining exploration company quoted for trading on the TSX Venture Exchange under the trading symbol 'KWG'. KWG currently has 96,432,751 issued and outstanding common shares and no outstanding long-term debt.
Diagem is funding this drill program as part of its $2,000,000 earn-in into the joint venture. Once these funds have been expended, Diagem will have earned an 8% interest in the joint venture, which may be converted into an equity interest in KWG (8,666,667 shares) and Spider (9,600,000 shares).
For and on behalf of
DIAGEM International Resource Corp.
"Dr. Mousseau Tremblay"
President