KWG files Debuts Diamonds Inc prospectus, additional diamond recoveries increase Good Friday grade

    Symbol on TSX-Venture Exchange: KWG
    Shares issued and outstanding: 267,659,821

    MONTREAL, Aug. 28 /CNW/ - KWG Resources Inc. (TSXV: KWG) has received a
receipt for filing of the preliminary prospectus of its subsidiary Debuts
Diamonds Inc. The preliminary prospectus is available from the SEDAR record of
filings for Debuts Diamonds Inc. As previously published, KWG has transferred
all of its diamond exploration interests to Debuts Diamonds Inc. in order to
distribute their value to KWG's shareholders as a tax-free return of capital
via a dividend of some or all of the shares of Debuts Diamonds Inc. A dividend
record date will be determined upon the receipt for a final prospectus being
    Processing of an additional 1,170 kilograms of the MacFadyen Project's
Good Friday kimberlite, has recovered 0.54 carats of diamonds suggesting an
indicated diamond content of 46.15 carats per 100 tons. The processing was
done at the Mousseau Tremblay Inc. heavy minerals laboratory and consisted of
attrition milling, jigging and electromagnetic separation. The sample was the
second half-core of a drill hole put down in 2007. Two diamonds were found in
the +85mm fractions of the sample: one weighing 0.425 carat; the second
weighing 0.115 carat. The diamonds are white, transparent, clear and partly
translucent, although some inclusions were noted.
    These results are directly comparable to the previously reported results
obtained at the SGS Lakefield Laboratory. As reported in August 2007 the first
Good Friday half-core kimberlite sample had been treated by DMS on the +0.85mm
fraction of the sample. This work yielded one diamond that measures 2.36 to
3.35 mm in size and weighs 0.230 carat. The color is a white translucent
fragment with crystal faces showing 85% preservation. The results suggested
then an indicated diamond content of 19.7 carats per 100 tons and Lakefield
advised that the sample should be considered too small to regard the figure of
19.7 carats per 100 tons as a statistically reliable indication of the diamond
content of this kimberlite. It should be emphasized that the additional sample
recently processed is also too small to offer a reliable indication of the
grade of the pipe. Nevertheless, the grades obtained both in 2007 and 2008 are
sufficiently encouraging to warrant a first large bulk sample of a minimum of
10 tons. The value of the four diamonds that have been found to date has not
yet been estimated.


For further information:

For further information: BRUCE HODGMAN, Communications Director, Direct:
(416) 646-1374,; MICHEL COTE, Director, Tel: (514)
866-6001 - Ext. 266; Or visit our website:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890