KWG completes Ring of Fire royalty purchase

• CLF - News; Paris: CLF - News) supports the acquisition as it believes the deposits can be economically developed to supply both North American and some external markets. As 15 million KWG shares were issued to the vendor, Cliffs intends to subscribe for a further 3 million shares in order to maintain its equity interest.

  The discovery of nickel in the MacFaulds Lake area in September 2007 started KWG along a development path which KWG expects may now accelerate. Funds raised as a result of the new discovery enabled KWG and joint-venturer Spider Resources, to complete the acquisition of a combined 50% interest in a nearby property optioned from Freewest Resources. A drilling program there was undertaken to follow up the joint-venture's 2006 discovery of a high-grade chrome occurrence. This source of ferro-chrome for steel alloying is a principal ingredient in all grades of stainless steel, at a ratio of some 18% or more.

  Metallurgical testing of samples recovered from the discovery in early 2008 indicated that a uniquely large and high-grade deposit of ferro-chrome-yielding chromitite had been found, which might supply steel-making markets in North America and beyond. Under the terms of the option agreement, KWG and Spider may earn a 60% interest in the property optioned from Freewest Resources by completing a feasibility study and thereafter, an additional 5% by sourcing construction financing, for which KWG approached Cliffs Natural Resources.

  Cliffs Natural Resources is an international mining and natural resources company. The company is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal. For almost two centuries Cliffs has been the dominant mine operator and supplier of iron ore for integrated steel production in North America and continues to be the principal operator on the Minnesota and Michigan Iron Ranges, two of the hemisphere's chief sources of iron. As such, the company has built and operated railroads, plants, terminals and loading facilities of all description.

  Cliffs accepted KWG's invitation to become a principal investor in order to participate in its development initiatives. Cliffs sought and was given KWG Board representation coincident with acquiring an equity interest of slightly less than 20%, plus an ongoing option to increase or maintain that interest through further investment.

  KWG has now acquired half of the royalty underlying its property and the adjoining property of Freewest after an independent economic analysis based on conceptual planning and market forecasts undertaken by Cliffs. The royalty is expected to yield a substantial monthly cash flow to KWG if production ensues. The North American market alone might absorb ore production of up to 4,000 tons per day. That quantity of material will require construction of a railroad to transport the partly treated ore to a ferro-chrome refinery ideally located near transportation to markets and to electricity supply for the electric-arc furnaces used in the process. KWG is examining a number of location alternatives as well as the available furnace technology options.

  KWG has also had preliminary discussions with The Ontario Northland Railroad to examine collaboration in the construction and operation of the railroad from the deposits to Nakina, where it can connect to existing rail lines. ChromeCana Inc has been created as a wholly-owned KWG subsidiary for the purpose of development of the mines and railroad and is undertaking pre-engineering assessment of a proposed right-of-way for the railroad.

  Initial indications continue to confirm the capital cost assumptions considered by Cliffs in its preliminary market sensitivity analyses, undertaken prior to the KWG investment. This analysis has been provided to the Toronto Stock Exchange for its review of KWG's application to graduate its share listing from the TSX Venture Exchange, on the basis of its interests in the deposits.

  Forward Looking Information:

  This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that KWG believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the economic development of the subject deposits, the expected cash flow to KWG associated with the purchase of the royalty interest if ore production ensues, the supply of ore production to North American markets and/or other markets and the construction of the requisite railroad to transport ore to refineries) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of KWG based on information currently available to KWG. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of KWG to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on KWG.

  Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: the failure to economically develop the subject deposits; delays associated in the development of the subject deposits; the failure to enter into the requisite agreements for the development and operation of the subject deposits on favourable terms or at all; the inability to market ore production, if achieved, to North American markets and/or other markets; volatility of and sensitivity to market prices for chromitite; changes in anticipated demand for chromitite by the steel-making industry; environmental risks; the grade, quality and recovery of ferro-chrome yielding chromitite varying from expectations; the lack of funding for the development of the subject deposits and the requisite railroad; changes in equity and debt markets; the failure to develop and construct the requisite railroad for the transportation of ore to be refined in a timely manner or at all; insufficient or sub-optimal transportation capacity; the failure to complete a feasibility study; or other factors (including development and operating risks)

  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, KWG disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although KWG believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guaranteed of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

   Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. 

  For further information

...........Dis indicator..............breaks 50 dma
* Assa noted by Randomski...RSI issa below 30.......where rebounds occur


* Note dat dis indicator since Jan 2009 has traced a risin' pennant formation.....Bullish fo' breakout ta da up side....Soon


Gold Corp - Big Gold:
- Unhedged anna inna Cannuckland

* Dis issa ma own proprietary indicator...........ma thoughts are
dis guy issa fully priced...........Glamourous but expensive........
..........Monies movin's ta Mids anna Juniors...........
..........indicates Gold coolin' off a bit........Juniors may still be strong
* Dis guy issa indicatin' a move next week


Gold vs S&P 500:
- to be in Gold or Stocks


* lookin fo' direction


S&P 500 Index
- 500 Large Cap Universe inna USA

* S&P Summer recovery.....rare
* Notes da decreasin' volumes........
* S&P chugs inna channel..........watch fo' decline ta 750~800 onna June 19th........(maybe extended a couple of weeks inta summer)
* Note da chart issa at a confluence o' 50 dma anna 200 dma


S&P500 Showin's da bottoming Head & Shoulders

* Da Rock's read o' dis issa...............S&P chugs sideways until June
..............anna declines ta 750~800 ta form da Right Shoulder o'
..............da Head (666 @ March 10, 09) & Shoulders(741 @ Nov 20, 08) (Jun 19th, 09) bottom.
..........den we're off ta NEW BULL; see explanation here:
http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=91943

TSX Composite
- Da Canuckland index

* Main pattern issa up..............
* TSX over 50dma

=================================================================
B. Copper, Commodities & Metals
CDNX Venture
- Proxy fo' ma Junior Golds/Metals

* Venture's stocks ................marchin' good.............
* Broke 50dma
* Notes da increasin' volumes........


Continuous Commodities Index
- 17 key commodities

* Strong up trend.........drivin's reg Markets..........up
Golden cross of 50dma crossin 200dma ........
da Rock sees mo' upside here........

Silver ETF:
- Silver follows Gold; wit bigger gains

* Silver recovery


US Dollar:
- decoupled from Gold

* USD moves back above .80
* waitin' ta see da type o' pennant shown here......
* Dis pennant seems ta says mo' downside comin'


Oil:
- onna up trend; inverse o' da USD$

* Oil recovers...........

Oil Bullish Indicator:

* RSI issa below 30...........
* Pundits sayin' higher oil

Natural Gas
- seems ta have bottomed


Ratio Oil/Natural Gas
- now at historical high


UNG - Natural Gas Fund
- may be bottoming

Dis may be an interestin' play .....o'er da summer
* Nat Gas givin' all indications o' bein' played by specs

* Da Rock hassa decided ta stay aways from dis one

Coal ETF
- moves wit oil
* Will move wit oil moves.....................
Da Rock likes coal betta.................dan Nat Gas



Doctor Copper:
- Da Dr. leads anna predicts da economy usually

* Now Copper makes clear move up
* Settin's up pennant flag.............
* Continues March up

* Dis seems ta be a clear breakout!!!


Steel Stocks vs NYSE
- gives leadin' indicator o' economy
- gives leadin' indicator o' economy
=================================================================
C. Miners; Juniors; Nano-caps


onna dis chart view CMM's up trend issa intact!
* see Ducimus' analysis o' dis CMM:

http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=26926533&l=0&r=0&s=CMM&t=LIST


Century Mining - da Rock's Fav:
- Hi-grade Gold mine inna Canuckland

* Dis issa a $5 stock sittin's @ 18 cents................
* Wit $65 Mil US inna debentures comin'
* Wait til big boys see dis when mill starts up inna 3 months....
* Strong move taday onna financials inna couple days
* Da Rock expects news next week.........200+% move comin's

* Dis issa da week fo' fireworks!!!



Cliffs Natural Resources
- Iron Ore anna Coal miner

HL - Hecla Mining
- Undervalued Silver Miner


* Now atta time o' year for revenue from Alaska................
* Next quarter........numbers gonna surprise............
* Got gold too..........inna Alaska
* Clears 200dma anna pulls back


SLW - Silver Wheaton
- Silver royalties only; no minin'

* SLW's got 21 employees only.............
* All costs fixed...............so highly leveraged ta silver price
* breaks 50dma

New Gold
- Biz combination wit WGW gonna create synergy


* NGD anna WGW combination movin's forward...................
* Dis is a 10 bagger from 'ere..................might take 2 years..........
* Does Golden Cross.......bullish
* Pulls back wit Gold price


Ring O' Fire - KWG
- Chromite, Diamonds, anna VMS Copper/Zinc/Lead/Silver fo' literally a few pennies

* Big Daddy Chromite........also gots rare earth metals.....anna PGE group metals...........Kin you say Rhodium............anna Platinum
* Drops ta .02 cents
* Debut distribution o' shares comin's




Placer Gold Production - PRZ
- Hi Grade producer; 350 ton mill inna place
- $2Mil JV with EPL ta mine Gold

* Dis guy issa producer................pourin' Gold bars.......
* 50dma crossed 200dma.....only upside from 'ere
* Gaps up onna volume
* Gonna surprise dis summer.............


Sage Gold - SGX
- led by Nigel Lees; combinin' wit Consolidated Puma Resources
* Drillin' inna Gold extension off KXL's Gold strike
* Look fo' a surprise dis summer........
* Moves higher onna volume wit news last week

Phoenix Coal - PHC.To
- Illinois basin coal player lookin' ta increase production

* new addition ta da Rock's portfolio
* has $20 million cash
* seems ta be safe slow play
* Moves higher wit news comin'

Dats a wrap fo' Now!
HardRock