More massive chromitite continues to increase size of the BIG DADDY Chromite occurrence



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

    MONTREAL, Sept. 26 /CNW/ - KWG Resources Inc. (TSX-V: KWG) ("KWG"),
Spider Resources Inc. (TSX-V: SPQ) ("Spider"), and Freewest Resources Canada
Inc. (TSX-V: FWR) ("Freewest") are pleased to provide an up-date of the
drilling on the BIG DADDY Chromite Occurrence in the McFaulds Lake area of the
James Bay Lowlands, Ontario.
    Four additional drill holes have penetrated the chromitite beds announced
earlier in the current drill program underway on the Freewest Option property
that is located approximately 3.6 kilometres northeast of Noront Resources
Ltd's ("Noront") Eagle One Magmatic Massive Sulphide deposit (Nickel, Copper
and PGM's) and 5 kilometres northeast of Noront's Blackbird One and Two
(Chromite) discoveries, and 2 kilometres south-southwest of Freewest's
recently announced intersection of Chromite (called the Black Thor Occurrence)
on Freewest Claims that are not part of the Option Property with KWG / Spider
joint venture.
    The following 4 drill holes were drilled on 50 metre step-outs along
local grid line 12 NW.

    HOLE        DIP     FROM    TO     (m)    DESCRIPTION
    FW-08-18  -50 deg   44.9   46.5    1.6    Massive Chromite

                          73     87     14    Disseminated Chromite
                          87     93      6    Semi - Massive Chromite (60%)
                          93  135.2   42.2    Massive Chromite
                                      63.8m   Interval thickness

    FW-08-19  -50 deg  114.1  115.5    1.4    Semi - Massive Chromite
                       141.5  144.1    2.6    Massive Chromite

                         183  229.5   46.5    Massive Chromite

    FW-08-20  -50 deg  260.1  263.7    3.6    Massive Chromite

                       290.8  304.3   13.5    Disseminated and semi
                                              Massive beds
                       304.3  336.9   32.6    Massive Chromite
                                      46.1    Interval thickness

    FW-08-21  -50 deg    376  385.8    9.8    Massive Chromite
                                              Fault - Peridotite
                       406.2  417.3   11.1    Massive Chromite
                                      20.9    Interval thickness

    Based on visual examination of the drill core the massive chromitite
reaches thicknesses of up to 60 metres. However, the true thicknesses of the
continuously mineralized horizon are unknown until assays are received and the
geometry of the chromite body is defined. This brings to nine, the number of
holes awaiting assay results from this discovery. The foregoing table is based
upon visual observations only, and there is no guarantee as to the grade or
consistency in grade of the reported chrome intercepts. Drilling will continue
on the project through to the freeze-up period anticipated to be towards the
end of October.
    These recent KWG / Spider drill-hole intercepts are quite encouraging,
particularly when they are considered along with the previously announced
results on this JV property, in addition to the results announced by Noront on
its two nearby chromite occurrences located to the SW, and also in addition
the Freewest chromite occurrence to the NNE. There are now four chromite
occurrences that are actively being explored along a seven kilometre long
intrusive belt. The collective exploration results support a geological
analogy with the Kemi Chromite Mine in northern Finland where 12 individual
occurrences are found along a 16 kilometre long belt in a similar geological
environment that are currently being mined.
    The Kemi Mine is owned and operated by Outokumpu and the initial resource
reported by Outokumpu was 150 million tons grading 28.6% Cr(2)O(3). In 1999
the US Government (USGS) estimated that the Kemi Deposit contained "70 million
metric tons (Mt) of proven and probable reserves and additional resources of
about 150 Mt (Metal Bulletin, 1999a)"
( Note that these
estimates for the Kemi were prepared prior to the implementation of National
Instrument 43-101 standards for reporting resources and reserves, but are
offered to demonstrate the relative large size potential of this style of
mineralization and although the Joint Venture results to date are encouraging,
considerably more drilling is required to ascertain the economic significance
of the JV property.


    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.
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 previous drill-hole intercepts in the main
chromite zone at the BIG DADDY Chromite Occurrence. These samples were
selected from holes FWR-08-05 and FWR-08-07.
    The initial investigations suggest that discreet grains of high purity
chromite occur in a hydrothermally altered rock with a matrix composed of
chlorite, talc with minor pyroxene and amphibole. The grade of the individual
chromite grains ranged from 48 to 61%, indicating a high level of purity. No
deleterious elements were identified within the chromite grains.
    The initial chrome values in the 8 selected split core samples ranged in
grade up to 34% Cr2O3. To be considered for most commercial applications such
as metallurgy (ferrochrome), refractories, and chemicals, the chromite
enriched rock would need upgrading from the reported initial assay grades to
above 40% Cr2O3. Typically, as per most operating primary chrome mines,
concentration is done at site. This processing consists of mechanical
sorting/crushing followed by simple gravity separation. The test work
completed thus far on the submitted samples from the BIG DADDY suggests that
early stage sorting/crushing and simple gravity separation may be sufficient
to separate the altered waste rock products (gangue) from the chromite,
resulting in a concentrate that will meet or exceed the minimum required
chromite grade of 40%. Processing, either at site or at a custom facility
elsewhere has the potential to substantially upgrade the chrome to grades that
are well within the norm for the industry.
    Based upon the excellent results from the initial investigation of the
chrome potential contained within the submitted limited number of the samples,
the Joint Venture partners have instructed World Industrial Minerals to
commence with an initial metallurgical investigation involving a much larger
number of samples, that take into consideration the range in chrome grades
throughout the occurrence and also the spatial relationships of the samples
with respect to each other within the well mineralized "massive Chromitite"
portion of the BIG DADDY Chrome Occurrence. This metallurgical investigation
work will continue through the remainder of 2008. It is also recommended
(verbally) that a much larger sample be selected as required for additional
bench tests to determine optimum crush size, relative work indexes, etc. to
better understand recovery, as will be needed in any scoping study being
considered at a later date. The Joint Venture partners hope to have a final
report as prepared by World Industrial Minerals regarding the first 8 samples
delivered within the next few weeks.


    The Management of the Company would like to advise the readers of this
press release as well as all other interested persons that it is frustrated by
the long time required to obtain assay results for this drilling program. The
time delay is a direct result of the time required to do the preferred
analysis that involves the use of a nuclear reactor associated with McMaster
University in agreement with Activation Laboratory ("Actlabs") of Ancaster,
Ontario. The number of samples that can be accommodated by this reactor is
limited to the availability of the reactor that also has other priorities in
research at the University.
    With the KWG/Spider - Freewest Joint Venture along with Noront Resources
Ltd. each supplying a large number of samples along with a number of others
now exploring for chromite, and, with only one or two places in the world with
reactor time and capacity available for this activity we just have to be
patient and wait our turn.


    Two holes numbered FW-08-16 and FW-08-17 were drilled to test a weak
electromagnetic conductor located on the southern flank of a strong magnetic
anomaly, located in the extreme northwest corner of the option property. These
two holes were drilled from the same collar located at UTM: 550875 mE 5846305
mN with an initial azimuth of 315 degrees, hole 16 had an initial dip of -50
degrees, while hole 17 had an initial dip of -65 degrees to undercut hole 16.
    Hole FWR-08-16 encountered magnetite rich banded iron formation between
117.7 metres and 128.9 metres downhole, the main sulphides present included
pyrite, pyrrhotite and chalcopyrite. This was followed by a magnetite poor
silicate enriched banded iron formation between 128.9 metres and 139.5 metres.
Followed by another section between 139.5 metres and 146.7 metres where
magnetite rich banded iron formation containing pyrite, pyrrhotite and
chalcopyrite was reported. Assays are pending on this hole.
    Hole FWR-08-17 encountered oxide iron formation with alternating bands of
magnetite and chlorite, with local concentrations of pyrhotite and
chalcopyrite between 143.5 metres and 148.3 metres. This was followed by
silicate iron formation between 148.3 metres to 159.1 metres, showing an
increase in chert layers, with little to no magnetite, sulphides consisted of
pyrhotite, pyrite and chalcopyrite. At 159.1 metres the iron formation became
oxide facies again consisting of mostly magnetite alternating with chlorite
and silicious beds. Assays are pending on this hole.
    Depending on assays from these two holes, more work may be warranted.
    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.


For further information:

For further information: BRUCE HODGMAN, Communications Director, Direct:
(416) 646-1374,, Or visit our website:

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