KWG and Spider complete 2008 drilling program at Big Daddy Chrome Deposit; preliminary metallurgical test work yields positive results



    
    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 269,659,821

    HIGHLIGHTS

    -   THE KWG-SPIDER JOINT VENTURE HAS COMPLETED THEIR EARN-IN OF A 50%
        INTEREST IN THE FREEWEST OPTION PROPERTY
    -   HOLE FW-08-14 ENCOUNTERED 36.3% Cr(2)O(3) OVER 10.5 METERS FOLLOWED
        BY 3.4 METER WIDE PLATINUM GROUP METAL SECTION THAT AVERAGED 2.21 g/t
        PLATINUM AND 2.15 g/t PALLADIUM
    -   MASSIVE CHROMITE BED(S) PERSISTENT FOR AN ADDITIONAL100 METERS TO THE
        NORTHEAST
    -   PRELIMINARY METALLURGICAL TEST WORK SHOWS POSITIVE RESULTS FOR
        PRODUCING A COMMERCIALLY ACCEPTABLE FERRO-CHROME PRODUCT
    

    TORONTO, Oct. 21 /CNW/ - KWG Resources Inc. (TSX-V: KWG) "KWG", Spider
Resources Inc. (TSX-V: SPQ) "Spider", and Freewest Resources Canada Inc.
(TSX-V: FWR) "Freewest" announce the completion of a very successful drilling
program prior to the fall "freeze-up" period in Northern Ontario.
    Since 2005 the KWG-Spider Joint Venture has spent the minimum
$3.0 million on the Freewest Option and has earned a 50% interest in the
optioned claims. The current ownership on the subject claims is now 25% KWG,
25% Spider and 50% Freewest.
    Since June, the main exploration focus of the KWG-Spider Joint Venture
has been on the massive Chromite occurrence that was first discovered on the
Freewest Option property in March of 2006. As a result of the recent drilling
completed, the occurrence is now referred to as the "Big Daddy Chromite
Deposit". This deposit is located approximately 3.6 kilometers northeast of
Noront Resources Ltd's ("Noront") Eagle One Magmatic Massive Sulphide (Nickel
Copper and PGM), or five 5 kilometers northeast of Noront's Blackbird One and
Two (Chromite) discoveries, and 4 kilometers southwest of Freewest's Black
Thor Chromite discovery.
    Diamond drilling by the KWG/Spider JV, has identified a northeast
trending zone of continuous chrome mineralization, that extends from local
grid line 9+00 meters NE to 13+00 NE. The mineralized zone dips towards the NW
at about 70 degrees and consists of varying widths of a variable tenor of
chrome mineralization, forming a series of stacked lenses. Additional infill
drilling will be required to confirm continuity of the lenses from section to
section.
    The deposit remains open to depth as well as along strike in both
directions. In addition, near surface drilling of the upwards extension to
surface has not been completed. All drill data is being added to a 3-D Gemcom
model to visualize the chromite body. Assays, when they become available will
be added into this model, to provide average grade estimates. A number of
faults were noted in the drilling logs, some of which occur at the contact of
the chromite with the surrounding peridotite/dunite; these fault sets are also
being modelled, as they also affect the interpretation and continuity of the
mineralization from section to section.

    ASSAY DATA RECENTLY RECEIVED

    Analytical results have recently been received for three holes drilled
earlier this past summer: FW-08-12, FW-08-13 and FW-08-14. Each of these holes
intersected massive chromite mineralization as previously announced (August
19, 2008). The following table (Table 1) provides drill collar co-ordinates
for these three holes, as well as other holes previously drilled (and
reported) on the Big Daddy Chrome occurrence. Table 2 provides additional
details of assays received from the first three holes of last summer's
exploration program.

    
    Table 1
    -------------------------------------------------------------------------
    Hole ID    UTM      UTM     Local    Local   Azimuth  Inclination  Length
             Easting  Northing   Grid     Grid   degrees    degrees      (m)
               (m)       (m)   Easting  Northing
                                 (m)      (m)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FW-06-03  551087  5845306   10+00E  15+25N  150 degrees -50 degrees 353.5
    -------------------------------------------------------------------------
    FW-08-05  551050  5845367  L10+00E  16+00N  150 degrees -50 degrees   327
    -------------------------------------------------------------------------
    FW-08-06  550959  5845324   L9+00E  16+00N  150 degrees -50 degrees   384
    -------------------------------------------------------------------------
    FW-08-07  551136  5845427  L11+00E  16+00N  150 degrees -50 degrees 405.7
    -------------------------------------------------------------------------
    FW-08-12  551111  5845472  L11+00E  16+00N  150 degrees -50 degrees   354
    -------------------------------------------------------------------------
    FW-08-13  551164  5845384  L11+00E  15+50N  150 degrees -50 degrees   297
    -------------------------------------------------------------------------
    FW-08-14  551180  5845451  L11+50E  16+00N  150 degrees -50 degrees   189
    -------------------------------------------------------------------------


    Table 2
    -------------------------------------------------------------------------
    Hole ID   From   To     Int   Ni    Pt    Pd   Au  TPM Cr2O3  Cr  Fe  Cr:
               (m)   (m)    (m)    %   g/t   g/t  g/t  g/t   %    %    %  Fe
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FWR-08-
    12       130.5  139.5   9.0  0.05  0.55 0.51 0.07 1.13  NA   NA   NA   NA
    -------------------------------------------------------------------------
    followed
    by       208.7  213.0   4.3  0.18  0.15 0.08 0.01 0.24  9.3  6.4  9.9 0.7
    -------------------------------------------------------------------------
    then     213.0  228.3  15.3  0.25  0.15 0.05 0.01 0.21  0.8  0.6  2.2 0.3
    -------------------------------------------------------------------------
    then     228.3  244.8  16.5  0.17  0.41 0.18 0.01 0.60 39.7 27.2 16.0 1.7
    -------------------------------------------------------------------------
    then     244.8  251.0   6.2  0.22  0.23 0.05 0.01 0.29   NA   NA   NA  NA
    -------------------------------------------------------------------------
    then     251.0  264.3  13.3  0.10  0.29 0.23 0.01 0.53 36.4 24.9 14.2 1.8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FWR-08-
    13        55.3   74.3  18.8  0.25  0.04 0.12 0.00 0.16   NA   NA   NA
    -------------------------------------------------------------------------
    followed
    by        74.3  142.2  67.9  0.13  0.19 0.20 0.01 0.40 25.1 17.2 15.2 1.1
    -------------------------------------------------------------------------
    including 90.0  102.0  12.0  0.12  0.23 0.17 0.00 0.40 29.1 19.9 15.5 1.3
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FWR-08-
    14        30.0  103.5  73.5  0.11  0.17 0.19 0.01 0.37 29.6 20.2 15.8 1.3
    -------------------------------------------------------------------------
    including 40.5   51.0  10.5  0.11  0.20 0.13 0.01 0.33 36.3 24.8 16.4 1.5
    -------------------------------------------------------------------------
    followed
    by       103.5  117.0  13.5  0.09  0.78 0.99 0.04 1.81   NA   NA   NA  NA
    -------------------------------------------------------------------------
    inclu-
     ding    113.6  117.0   3.4  0.09  2.21 2.15 0.08 4.44   NA   NA   NA  NA
    -------------------------------------------------------------------------
    

    Hole FW-08-12 intersected a length of platinum and palladium
mineralization, where the Total Precious Metals (TPM) exceeded 1 gram/tonne
over 9 meters, followed by a 4.3 meter section of semi-massive chromite that
averaged 9.3% Cr(2)O(3), followed by a 15.3 nickel enriched section that
averaged 0.25% nickel. This was then followed by a 16.5 meter section of
massive chromite that averaged 39.7% Cr(2)O(3) followed by a third 13.3 meter
section of massive chromite that averaged 36.4% Cr(2)O(3). The two thicker
beds had a very good Cr:Fe ratio of 1.7 and 1.8 respectively.

    Hole FW-08-13 intersected a length of nickel mineralization over
18.8 meters that averaged 0.25% nickel, followed by a 67.9 meter zone of
semi-massive to massive chromite that averaged 25.1% Cr(2)O(3) including a
richer section where 12 meters averaged 29.1% Cr(2)O(3).

    Hole FW-08-14 intersected a 73.5 meter thick zone of chromite
mineralization that averaged 29.6% Cr(2)O(3) including a 10.5 meter section
that averaged 36.3% Cr(2)O(3) with a Cr:Fe ratio of 1.5. This area of chromite
mineralization was followed down hole by a platinum bearing unit over
13.5 meters that averaged 1.81 TPM g/t including a 3.4 meter section that
averaged 4.44 TPM g/t.

    DRILL RESULTS FROM RECENT PROGRAM

    The following table (Table 3) summarizes the drill hole intersections of
the last two holes recently completed, to test the continuity of
mineralization at a 100 meter step out to the Northeast on local grid line
13+00 NE. Massive Chromite was intersected in both of these two new holes. The
following table provides visual descriptions of the core as noted by site
geologists in the drill logs. These are visuals only - assays are pending on
these two holes. Once all assays are received, downhole assay grade intervals
will be released along with hole collar locations on the local and UTM grid
for these as well as earlier holes where collar locations have not yet been
reported.

    
    Table 3 (Recent drill results, observed mineralization, assays pending)
    -------------------------------------------------------------------------
                initial     from               Int.
    Hole ID       dip        (m)     to (m)    (m)     Visual observations
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FW-08-22    -50 deg      250       256      6      Disseminated Chromite
    -------------------------------------------------------------------------
                             256     263.6    7.6      Semi Massive Chromite
    -------------------------------------------------------------------------
                           263.6     298.8   35.2      Massive Chromite
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FW-08-23    -50 deg      265     269.7    4.7      Disseminated Chromite
    -------------------------------------------------------------------------
                           332.3       378   45.7      Massive Chromite
    -------------------------------------------------------------------------
    

    The widths of the chromite beds stated in Table 3 are drilled intercepts
only, not true thickness. True thickness will be determined once additional
drilling is completed and the deposit is modeled. The main massive chromite
bed appears to be continuously mineralized over an apparent thickness of 35 to
45 meters on this section. Notwithstanding the foregoing, visual observations
are estimates only and pending assay results may not confirm visual
observances in whole or in part.
    The above noted holes were drilled on section 13+00NE, in a southwesterly
direction (grid south) and the collars are on 50 meter centers. As stated
above, upon receipt of complete assays from the holes drilled since June,
additional collar location and down-hole information will be provided and
summarized in table form. An initial rendering of the 3D model as derived from
vertical sections, including drill plans will also be added to KWG's website.

    SAMPLE PROTOCOL, SECURITY, ANALYSES

    All drill holes were logged and samples referred to herein were completed
and selected under the supervision of 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 at
McFaulds Lake. The split samples were placed into individual plastic bags,
clearly labeled and tagged and then sealed in rice bags where a numbered seal
lock was applied. 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. After initial processing at the Thunder
Bay facility of ActLab, the samples were shipped via lab - lab bonded courier
to ActLab's main laboratory in Ancaster, Ontario. The samples all underwent
multi-element analysis using four acid digestion followed by Inductively
Coupled Plasma analysis (TD-ICP). Where over-limits in nickel and copper are
encountered in the first pass, Optical Emission Spectrometry (ICP-OES) is used
to provide the over-limit results, 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 chrome grades in excess of 1% chrome. For more
information on these analytical techniques please refer to Activation
Laboratory website www.actlabs.com.

    PRELIMINARY METALLURGICAL TEST WORK ON THE BIG DADDY CHROMITE

    The Joint Venture partners commissioned James R Guilinger of World
Industrial Minerals, of Arvada, Colorado to perform initial investigations
into the metallurgical characteristics of samples selected from the project.
Mr. James Guilinger is a Registered Member (RM) with the Society of Mining
Engineers (SME) and a Qualified Person (QP) as such term is defined under
National Instrument 43-101 with the Mining and Metallurgical Society of
America (MMSA). His work entailed a petrographic examination and XRF/XRD
analyses on 8 selected split core samples from earlier drill-hole intercepts
within the main massive chromite zone at the Big Daddy Chromite occurrence.
These samples were selected from holes FWR-08-05 and FWR-08-07. The results
presented herein are preliminary in scope, much more metallurgical work and
beneficiation studies need to be performed.
    World Industrial Minerals utilized Phillips Enterprises, LLC of Golden
Colorado to perform beneficiation tests on the quarter core samples submitted.
The general scope of the initial metallurgical test work was to provide
information on the various processing techniques typically used to beneficiate
chrome, to determine the preferred general process required to up-grade the
chromite at the Big Daddy to a saleable product. As part of the metallurgical
study, Phillips Enterprises in conjunction with World Industrial Minerals
(under the auspices of Mr. James Guilinger), used DCM Science Laboratory of
Wheat Ridge, Colorado to provide X-ray Diffraction (XRD) analysis as well as
petrographic analysis on the samples to provide information needed with
respect to mineralogy and chromite content in the selected samples. Assay
determinations were provided by The Mineral Lab Inc. of Lakewood Colorado. The
assay technique used by The Mineral Lab was X-Ray Fluorescence (XRF).

    
    The following is a summary of the Guilinger's report:

    Beneficiation tests on the samples were completed at Phillips Enterprises
as follows:

    1. Core samples used for the test work were crushed and blended to -70 +
       140 mesh in a rod mill;

    2. Crushed material was screened at -140 mesh and sent to a flotation
       circuit. The -70 mesh + 140 mesh was sent to a gravity circuit that
       consisted of a gravity sorting table;

    3. Two products were made from the gravity circuit; a) concentrate and b)
       the 'middlings';

    4. A float concentrate product was made from the -140-mesh material.

    The initial crushed and screened sample plus all of the resulting products
were analyzed at Hazen Research of Golden Colorado. The samples were fused
with sodium peroxide. The melt was dissolved and diluted to volume in 10% HCl
and then analyzed by Atomic Absorption for Cr(2)O(3) with the following
results:

    -   Head grade of composite sample was 37% Cr(2)O(3). The chemically
        analyzed head grade is slightly higher than the calculated weight
        percent of the XRF results listed above.

    -   The gravity separation of the -70 + 140 mesh material shows a
        Cr(2)O(3) recovery of 47% based on the total sample. The gravity
        concentrate grade (concentrate plus middling) was 49% Cr(2)O(3).

    -   The flotation separation on the -140 mesh fraction shows a Cr(2)O(3)
        recovery of 28% based upon the total sample. The flotation grade was
        determined to be 43% Cr(2)O(3).

    -   In summary, 74% of the chromite contained in the composite sample
        was recovered using a combination of floatation and gravity
        separation techniques, this concentrate has an average grade of
        46.6% Cr2O3.

    -   Jim Guilinger states "The processed cores easily exceed the minimum
        40% Cr2O3 grade threshold that the market place prefers."
    

    The calculated Cr(2)O(3) grade for the chemically assayed concentrate
composite is 46.6%, based upon this the chrome (Cr) content is equal to 31.7%
Cr. XRF analysis shows that 21.9% iron (Fe) is present as Fe(2)O(3) containing
11.0% silicon (Si) as SiO(2) and 15.33% as elemental iron.
    Overall, it was concluded that the ferrochrome product from the
aforementioned testing provides a concentrate that is very close to meeting
specifications for the largest consumers of chromite (ferrochrome),
representing about 95% of the market. The material definitely qualifies for
the foundry sand application, which represents about 3% of the market. It was
noted that "With optimization of the gravity and flotation it should be
possible to create a product suitable for approximately 98% of the world
markets. In these two markets approximately 18.4 million tons of chromite were
consumed in 2005."

    
    Mr. Guilinger in his report recommended the following:

    1) Continue with the beneficiation to optimize chromite recovery and
       reduce the silica content to (greater than) 3% (on representative
       samples of the deposit as a whole); and

    2) Discuss chrome product specifications with potential consumers.
    

    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 as 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.

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
    





For further information:

For further information: BRUCE HODGMAN, Communications Director, Direct:
(416) 646-1374, info@kwgresources.com; Or visit our website:
www.kwgresources.com

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