KWG Resources Inc. - Significant chromite intersections returned from two additional holes - Big Daddy Chromite Deposit, James Bay Lowlands of Ontario



    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 288,134,821

    
    HIGHLIGHTS

    - HOLE FW-08-22 ENCOUNTERS 42.08% Cr2O3 OVER 34.8 METERS;
    - HOLE FW-08-23 UNDERCUTS 22 AND ENCOUNTERS 34.96% Cr2O3 OVER 42.0 METRES
    - HOLE FW-08-22 AND 23 ENCOUNTER INTRIGUING PLATINUM AND PALLADIUM VALUES
      RELATED TO CHROME MINERALIZATION INCLUDING 4.0 METRES OF PGE
      MINERALIZATION AVERAGING 1.08 g/t PLATINUM AND 1.5 g/t PALLADIUM
    

    TORONTO, Jan. 15 /CNW Telbec/ - 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 receipt of additional assays from
Holes FW-08-22 and 23, the last two holes drilled during 2008.
    During 2008, the main exploration focus of the KWG-Spider Joint venture
was the massive chromite occurrence that was first discovered on the Freewest
Option property in March of 2006. As a result of the 2008 drilling program
that included 19 drill holes, 14 of which continued the testing of this chrome
occurrence, 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
(Chromite) discoveries, as well as 4 kilometers southwest of Freewest's Black
Thor Chromite discoveries.

    ASSAY DATA RECENTLY RECEIVED FOR BIG DADDY

    Analytical results have recently been finalized for two holes drilled in
October 2008: FW-08-22, and FW-08-23. Each of these holes intersected massive
chromite as previously announced (December 15, 2008). The following table
(Table 1) provides details of assays received from the two holes not
previously reported.

    Table 1: Recently received analysis

    
    -------------------------------------------------------------------------
                     from        to       int     Cr2O3       Cr%       Fe%
    Hole ID            (m)       (m)       (m)        %
    -------------------------------------------------------------------------
    FW-08-22         54.3      57.0       2.7      6.12      4.19      9.57
    -------------------------------------------------------------------------
    followed by     192.2     298.5     106.4     19.42     13.28     11.34
    -------------------------------------------------------------------------
    including       263.7     298.5      34.8     42.08     28.79     15.92
    -------------------------------------------------------------------------
    then            298.5     303.0       4.5       nsv       nsv       Nsv
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FW-08-23        263.5     376.5     113.0     17.65     12.07     11.04
    -------------------------------------------------------------------------
    including       334.5     376.5      42.0     34.96     23.92     13.95
    -------------------------------------------------------------------------
    including       353.0     372.0      19.0     40.00     27.37     14.81
    -------------------------------------------------------------------------
    followed by     378.0     382.0       4.0     40.84     27.94     16.75
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                    Cr:Fe        Ni%       Pt        Pd        Au       TPM
    Hole ID                               g/t       g/t       g/t       g/t
    -------------------------------------------------------------------------
    FW-08-22         0.44      0.08      0.05      0.05      0.01      0.11
    -------------------------------------------------------------------------
    followed by      1.17      0.14      0.13      0.15      0.01      0.29
    -------------------------------------------------------------------------
    including        1.81      0.11      0.19      0.17      0.01      0.37
    -------------------------------------------------------------------------
    then              nsv      0.08      0.43      0.85      0.05      1.33
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FW-08-23         1.09      0.13      0.11      0.13      0.00      0.25
    -------------------------------------------------------------------------
    including        1.71      0.11      0.18      0.13      0.01      0.32
    -------------------------------------------------------------------------
    including        1.85      0.10      0.20      0.10      0.01      0.30
    -------------------------------------------------------------------------
    followed by      1.67      0.11      1.08      1.50      0.08      2.66
    -------------------------------------------------------------------------
    nsv refers to no significant values.
    

    The above tabulation of drill intercepts and assay results are core
lengths only, and do not represent true width for the mineralized zones.
Additional drilling is required to determine true widths. Cr:Fe ratios as
presented herein are based upon whole rock analyses, where Cr content is low,
the ratio becomes less meaningful, as the Fe in the silicate portion tends to
dilute the Cr in this calculation, but does not dilute the Cr contained within
the mineral chromite, more metallurgical work is needed to fully understand
this.
    As previously announced, (December 15, 2008) diamond drilling by the
KWG/Spider JV on the Freewest Option property has identified a northeast
trending zone of continuous chromite mineralization that extends from local
grid line 9+00 meters NE to 13+00 metres NE along a strike length of 400
metres. The mineralized zone dips towards the NW at about 70 degrees and
consists of varying widths of a variable tenor, in many instances high tenor
of chrome, forming a series of stacked beds. Additional infill drilling will
be required to confirm continuity of the beds from section to section. The
deposit remains open to depth as well as along strike in both directions. In
addition, drilling to confirm the upward extension of the mineralization to
surface has not been completed. All drill and assay results are being added to
a 3-D Gemcom model to visualize the chromite body. A number of faults were
noted from the drilling, some of which occur at the contact of the chromite
with the surrounding peridotite/dunite; these fault sets are also being
modeled as they also affect the interpretation and continuity of the
mineralization from section to section.
    All drilling on the Big Daddy Chrome Deposit took place with reference to
a local drill grid, labeled Grid J. The drills were set to drill grid south
normally at 150 degrees in most instances, and the initial dip of each hole
was set at -50 degrees. Table 2 provides drill collar co-ordinates for these
five holes, as well as other holes previously drilled (and reported upon) on
the Big Daddy Chrome occurrence, all azimuth directions are true North
readings. The UTM spheroid used for determining location was NAD 83 Zone 16,
both UTM and local grid co-ordinates are given.

    Table 2 Drill hole locations for Big Daddy Chrome Deposit

    
    -------------------------------------------------------------------------
                                Local   Local
    Hole ID    UTM     UTM       Grid    Grid    Azimuth  Inclination Length
             Easting Northing  Easting Northing  degrees    degrees     (m)
               (m)      (m)       (m)     (m)
    -------------------------------------------------------------------------
    FW-06-03  551087  5845306  10+00 E  15+25N 120degrees  -50degrees  353.5
    -------------------------------------------------------------------------
    FW-08-05  551050  5845367  L10+00E  16+00N 150degrees  -50degrees    327
    -------------------------------------------------------------------------
    FW-08-06  550959  5845324   L9+00E  16+00N 150degrees  -50degrees    384
    -------------------------------------------------------------------------
    FW-08-07  551136  5845427  L11+00E  16+00N 150degrees  -50degrees  405.7
    -------------------------------------------------------------------------
    FW-08-12  551111  5845472  L11+00E  16+50N 150degrees  -50degrees    354
    -------------------------------------------------------------------------
    FW-08-13  551164  5845384  L11+00E  15+50N 150degrees  -50degrees    297
    -------------------------------------------------------------------------
    FW-08-14  551180  5845451  L11+50E  16+00N 150degrees  -50degrees    189
    -------------------------------------------------------------------------
    FW-08-15  551158  5845494  11+50E   16+50N 150degrees  -50degrees    240
    -------------------------------------------------------------------------
    FW-08-18  551192  5845511  12+00E   16+50N 150degrees  -50degrees    255
    -------------------------------------------------------------------------
    FW-08-19  551168  5845554  12+00E   17+00N 150degrees  -50degrees    273
    -------------------------------------------------------------------------
    FW-08-20  551134  5845599  12+00E   17+50N 150degrees  -50degrees    357
    -------------------------------------------------------------------------
    FW-08-21  551118  5845650  12+00E   18+00N 150degrees  -50degrees    447
    -------------------------------------------------------------------------
    FW-08-22  551208  5845693  13+00E   18+00N 150degrees  -50degrees    330
    -------------------------------------------------------------------------
    FW-08-23  551171  5845732  13+00E   18+50N 150degrees  -50degrees    424
    -------------------------------------------------------------------------
    

    Hole FW-08-22 on local grid section L13+00E intersected two main areas of
chromite mineralization, including a short (2.7 metres) section between 54.3
and 57.0 metres that returned 6.12% Cr2O3. Further down this hole, a much
wider zone (106.4 metres) of chromite mineralization was encountered between
192.2 and 298.5 metres that averaged 19.41% Cr2O3, including a much higher
grade interval between 263.7 and 298.5 metres (34.8 metres) that averaged
42.08% Cr2O3 that exhibits a favourable Cr:Fe ratio of 1.81. The chromite
mineralization was followed by a 4.5 metre section between 298.5 and 303
metres downhole that averaged 1.33 total precious metals.
    Hole FW-08-23 on local grid section L13+00E undercut hole FW-08-22 and
intersected a well mineralized chrome section over 114.5 meters containing an
average of 17.65% Cr2O3, including a much stronger mineralized section where a
43.5 meter zone of massive chromite averaged 34.96% Cr2O3 including a 19.0
meter section averaging containing 40.0% Cr2O3 with a Cr:Fe ratio of 1.85.
Then between 378.0 and 382.0 a 4 metre drill interval averaged 40.84% Cr2O3 as
well as total precious metals of 2.66 g/t. The latter intercept also has a
very favourable Cr:Fe ratio of 1.67.

    CURRENT PROGRAM

    Crews mobilized to the field on January 8th to resume the linecutting
program in preparation for the 2009 program, details of which were announced
December 15th 2008. The current approved phase of exploration includes: line
cutting (re-establishing a 2004 drill grid - the J grid - including extensions
thereto), ground geophysical surveying (including magnetic gradiometer and
gravimetric surveying), re-logging of historical core to standardize
lithological units, infill sampling of zones of weaker chromite
mineralization, as well as the preparation of a NI-43-101 technical report on
the project. The preparation of this NI 43-101 report was awarded to Micon
International Ltd. a world recognized consulting firm, with expertise in
chromite deposits, the geologist assigned to this has recently visited the
project site as required during Micon's review of the project.
    Future plans, yet to be approved by the Joint Venture committee, include
the continued exploration of the project by extensive diamond drilling to
delineate and to continue to expand the resource potential of the Big Daddy
Chrome Deposit.

    JOINT VENTURE MATTERS

    KWG and Joint Venture partner Spider (the optionees), recently received
confirmation notice from Freewest (the optionor), that: (i) pursuant to
section 2.04 of the Agreement, each of KWG and Spider has incurred an
aggregate of $1,500,000 of Expenditures on or before October 31, 2009, of
which at least $200,000 was incurred on or before February 28, 2006; and (ii)
accordingly, each of KWG and Spider has earned a 25% interest in the Property
pursuant to section 2.07 (a) of the Agreement.

    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 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, while Fire Assay Inductively Coupled Plasma (FA-ICP) is used for over
limits in gold, platinum and palladium. Additional analyses using Instrumental
Neutron Activation Analysis (INAA) were completed for all samples for their
chrome contents in excess of 1% chrome. For more information on these
analytical techniques please refer to Activation Laboratory website
HUwww.actlabs.com
    This press release has been approved for dissemination by Neil Novak
P.Geo, President of Spider and James G. Burns, P.Eng. Vice President
Exploration for Spider, both being Qualified Persons as such term are defined
under National Instrument 43-101, who have reviewed and verified the technical
information contained in this press release and have 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.
    

    This press release, required by applicable Canadian securities law, is
not for distribution to U.S. news services or for dissemination in the United
States, and does not constitute an offer of the securities described herein.
These securities have not been registered under the United States Securities
Act of 1933, as amended, or any state securities laws, and may not be offered
or sold in the United States or to U.S. persons unless registered or exempt
therefrom.
    This press release includes certain "Forward-Looking Statements" within
the meaning of the US Private Securities Reform Act of 1995. Other than
statements of historical fact, all statements are "Forward-Looking Statements"
that involve such various known and unknown risks, uncertainties and other
factors. There can be no assurance that such statements will prove accurate.
Results and future events could differ materially from those anticipated in
such statements. Readers of this press release are cautioned not to place
undue reliance on these "Forward-Looking Statements". All dollar amounts are
Canadian dollars unless otherwise noted.




For further information:

For further information: BRUCE HODGMAN, Communications Director, Direct:
(416) 646-1374, info@kwgresources.com; MICHEL COTE, Director, (514) 866-6001
ext. 266; Or visit our website: www.kwgresources.com; Renmark Financial
Communications Inc.: Jason Roy, jroy@renmarkfinancial.com; Barbara Komorowski,
bkomorowski@renmarkfinancial.com; Montreal, (514) 939-3989, Fax: (514)
939-3717; Toronto, (416) 644-2020, Fax: (416) 644-2021;
www.renmarkfinancial.com

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KWG RESOURCES INC.

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