Symbol on TSX Venture Exchange: KWG
Shares issued and outstanding: 636,878,941
MONTREAL, June 10, 2011 /CNW/ - KWG Resources Inc. (TSXV: KWG) has received the final report from Xstrata Process Support
on its Big Daddy chromite metallurgical testing. The report confirms
that the samples collected from four bore holes of the Big Daddy
chromite deposit are amenable to refining at relatively modest energy
consumption resulting in high yields of refined ferro-chrome product.
The report observes:
"The results indicate a material that is highly reducible considering
its high chromium content and which, during smelting, produces a high
grade alloy at high chromium recovery, providing essential operating
parameters are satisfied.
Analysis of the smelting results indicates that a reductant requirement
of at least 19.5% Carbon equivalent is required to ensure optimum
chromium recovery. The smelting is somewhat less sensitive to the flux
addition rate, but 9% CaO equivalent is considered the safe minimum.
Smelting temperatures of 1625-1650°C appear optimum for best results.
Under conditions such as those summarised above, the Big Daddy ore can
be expected to return chromium recoveries of 92-93% into a high carbon
ferrochrome alloy grading around 58-60% Cr, with 6-8% C, 1% Si and the
Smelting power requirements, while subject to issues such as operating
conditions, furnace configuration and size and selection of process
technology, are relatively modest considering the grade of alloy
produced. Estimates in the range of 3.5 -3.8 MWh per ton of alloy
produced result from the various models tested.
The metallurgical test work performed indicates that the Big Daddy
chromite ore is highly suitable for the manufacture of high carbon
ferrochromium or for use as a sweetener ore to blend with lower Cr: Fe
chromite ores to manufacture charge chrome. The likely grade of alloy
produced from this ore is 58-60% Cr. High Cr recoveries are obtained
when smelting at normal FeCr furnace operating temperatures using
burned lime as flux and suitable solid reductant. The reducibility of
the ore is relatively high by comparison with previously tested ores of
similar Cr: Fe ratio.
No issues were identified which would give cause for concern about the
suitability of this ore as a high quality metallurgical feedstock for
the manufacture of ferrochrome alloys. The ore can be marketed to
prospective customers as being suitable for direct smelting in existing
ferrochrome furnaces without any further beneficiation."
The company is also pleased to report the results of the two holes
completed during its winter drilling program. Hole 63, drilled to a
depth of 555m at minus 43 degrees, generated two chromite intercepts.
The first through the Big Daddy Massive domain was from 489.6m to 525.0
(35.6m) (32m true width), at a vertical depth of 340-360m, assayed
41.08% Cr2O3. The second intercept from 535.5m to 546.0m (10.5m)
assayed 32.75% Cr2O3. Drilling of this hole was terminated by the
ending of KWGs operatorship of the project. Hole 64 drilled to a depth
of 710m at minus 57 degrees, beneath hole 63, did not intercept
chromite mineralization at the vertical depth target of 550-600m. The
lack of mineralization at depth on this section coincides with a 150m
segment within the 1 km gravity anomaly that defines the chromite
deposit, where a weaker gravity indication is recorded.
M. J. (Moe) Lavigne, P. Geo., Vice-President, Exploration & Development
of KWG, is the designated "qualified person" (within the meaning of
National Instrument 43-101) responsible for the preparation of this
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SOURCE KWG Resources Inc.
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