SPIDER RESOURCES INC., KWG RESOURCES INC.
AND FREEWEST RESOURCES CANADA INC.
REPORT REMAINING DRILL RESULTS FROM 2010 AT BIG DADDY
· Hole FW-09-50 encountered chromite mineralized envelope of 126.3 metres of which 63.3 metres averages 41.93% Cr2O3 with Cr:Fe ratio of 1.96
· Seven of final eight holes encounter grades in excess of 35% Cr2O3
· All assays are now complete, National Instrument 43-101 compliant resource estimate to commence on Big Daddy Chromite Deposit
TORONTO, ONTARIO – March 5, 2010 – Spider Resources Inc. (SPQ:TSX-V) (“Spider”), KWG Resources Inc. (KWG:TSX-V) (“KWG”) and Freewest Resources Canada Inc. a wholly owned subsidiary of Cliffs Natural Resources (CLF:NYSE) (Paris:CLF) (“Cliffs”) are pleased to provide an update and analytical results forthe remaining eight holes completed in 2010 drilling campaign at the Big Daddy Chromite property.
Neil Novak, President of Spider Resources Inc. states: “We are extremely pleased with the results for Big Daddy. Grades are once again exceptional, as are the apparent widths of mineralization. The consistency in chromite grade is also noteworthy. Grades of the massive chromite are almost always greater than 35%, and approach and even exceed 40% Cr2O3 on a regular basis. Hole 50 drilled near the centre of Big Daddy on Section 1900 East encountered nearly 42% Cr2O3 over 63 metres, making it one of the best Chromite hole s in the Ring of Fire. There is little doubt that portions of Big Daddy will be considered as having economic potential. Spider is now ready to contract an independent resource geologist to determine the size (million tonnes) that we’ve identified so far at Big Daddy, a crucial step to a pre-feasibility study.”
Results for Recent Drilling
Analytical results have been received for all remaining holes of the 10 holes completed on the Big Daddy prospect (a magmatic massive chromite deposit type) during the 2010 drilling campaign. Two holes, FW-10-47 and 48 were previously released (see press release February 16, 2010)
Hole FW-10-49 was drilled on Section 15+00 E, undercutting hole FW-09-33. Hole 49 entered disseminated chromite mineralization at 330.0 metres and remained in variably mineralized chromite until 403.3 metres for a total chromite mineralized envelope of 73.3 metres of which 57.0 metres, between 346.3 and 403.3 metres was massive chromite.
Hole FW-10-50 was drilled on Section 19+00 E, undercutting hole FW-09-42 and overcutting hole FW-09-43, and was designed to explain an area of geological uncertainty as encountered by the drilling of earlier hole FW-09-46 in the opposite direction. Hole 50 entered disseminated chromite mineralization at 72 metres downhole and remained in variably mineralized chromite until 198.3 metres for a total chromite mineralized envelope of 126.3 metres. Within this robust interval, three sections of massive chromite were intersected, the thickest of which was 63.3 meters between 135.0 and 198.3 metres downhole.
Hole FW-10-51 was drilled on Section 20+00 E, undercutting hole FW-09-30 and overcutting hole FW-09-31. Hole 51 entered disseminated to heavily disseminated chromite mineralization at 105.0 metres and remained in variably mineralized chromite until 133.4 metres for a total chromite mineralized envelope of 28.4 metres. Within this chromite zone there were two intervals of massive chromite, the thickest of which was 14.9 metres between 118.5 and 133.4 meters downhole.
Hole FW-10-52 collared on Section 19+00 E, was intended as a deep undercut of holes FW-08-08 and 09 as well as FW-09-43. This hole was abandoned due to mechanical problems that caused heavy fuel consumption that lead to logistical complications (lack of fuel due to the First Nation blockade prior to reaching target depth). The hole failed to intersect chromite mineralization and was not sampled.
Hole FW-10-53 was drilled on Section 21+00 E, overcutting hole FW-09-32. Hole 53 entered disseminated to intercalated massive chromite mineralization between 16.55 and 26.6 metres downhole, followed by a 23.5 metre wide zone of chromite mineralization between 85.5 and 109.0 metres downhole. This second zone contained a 7.65 metre interval of massive chromite mineralization between 99.1 and 106.75 metres.
Hole FW-10-54 was drilled on Section 15+00 E, overcutting FW-09-33 and undercutting FW-09-36 on same section. Hole 54 entered disseminated to semi-massive and intercalated massive chromite mineralization at 118.8 metres downhole and continued in chromite mineralization with tenor becoming increasingly greater with depth. The chromite mineralized envelope continued to 181.8 metres for total intercept of 63.0 metres. Massive mineralization was encountered between 155 metres and 181.8 metres for a total massive chromite intercept of 26.8 metres.
Hole FW-10-55 was drilled on Section 11+00 E, overcutting FW-08-13, one of the earlier holes drilled at Big Daddy. Hole 55 encountered chromite mineralization near surface at 10.7 metres downhole and remained in massive chromite mineralization until exiting it at 44.0 metres for a total massive chromite intercept of 33.3 metres.
Hole FW-10-56, the last hole of the program was drilled on Section 11+50 E, intended to undercut holes FW-08-15 and FW-08-14 drilled in 2008. This hole was drilled slightly askew from what was intended, nevertheless it ultimately did what was intended and encountered chromite mineralization of variable tenor between 136.5 metres and 223.02 metres downhole for a total mineralized envelope of 86.52 metres. The best intersection was between 173.61 and 223.02 metres downhole (49.41 metres), where massive chromite was encountered.
The following table provides assay highlights for seven holes reported upon herein on the Big Daddy. Only those intersections that averaged greater than 35% Cr2O3 over significant widths are included in the highlight table. As has been encountered in most holes drilled to date on the Big Daddy, the chromite zone surrounding the reported massive chromite mineralization is typically of varying tenor, and consists of heavily disseminated, intercalated thin (centimeter scale) to thick (meter scale) beds of massive chromite mineralization. The amount of this mineralization that eventually may be included in the reserves will not be determined until a feasibility study is undertaken.
Assay Highlight Table
|
Hole #
|
From (m)
|
To (m)
|
Length (m)
|
Cr2O3 %
|
Fe2O3%
|
Cr:Fe
|
Pd (g/t)
|
Pt (g/t)
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-49
|
337.40
|
338.65
|
1.25
|
41.47
|
23.45
|
1.73
|
0.75
|
0.37
|
|
as well as
|
346.30
|
403.30
|
57.00
|
40.52
|
20.58
|
1.93
|
0.24
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-50
|
79.5
|
100
|
20.5
|
38.00
|
19.19
|
1.94
|
0.24
|
0.24
|
|
as well as
|
103.75
|
124.65
|
20.9
|
38.13
|
19.53
|
1.91
|
0.29
|
0.33
|
|
as well as
|
135.00
|
198.30
|
63.30
|
41.93
|
20.97
|
1.96
|
0.21
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-51
|
111.55
|
116.00
|
4.45
|
40.41
|
20.82
|
1.90
|
0.17
|
0.23
|
|
as well as
|
118.50
|
133.40
|
14.90
|
41.02
|
22.54
|
1.78
|
0.31
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-53
|
99.10
|
106.75
|
7.65
|
40.52
|
21.95
|
1.81
|
0.18
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-54
|
155.00
|
181.80
|
26.80
|
41.46
|
22.31
|
1.82
|
0.12
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-55
|
10.70
|
44.00
|
33.30
|
37.18
|
21.21
|
1.72
|
0.24
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
FW-10-56
|
146.67
|
147.62
|
0.95
|
37.60
|
24.60
|
1.50
|
0.08
|
0.19
|
|
as well as
|
173.61
|
223.02
|
49.41
|
37.86
|
20.10
|
1.84
|
0.22
|
0.24
|
True widths of the chromite mineralization have yet to be determined and will be addressed at time of completion of resource estimate. The systematic drill pattern was designed to delineate the Big Daddy Chromite Prospect along its entire strike length. The chromite mineralized intersections are quite variable in apparent width due to the geological nature of the intrusion.
2010 Program / First Nation Update
As stated February 16, 2010, diamond drilling at Big Daddy has concluded. Sufficient drilling was completed to systematically test Big Daddy at sufficient drill pattern density to support an initial resource estimate. Now that all assay data from the drill program is finalized, the tendering process has begun where a contract will be negotiated and awarded to prepare a National Instrument 43-101 compliant resource estimate report on Big Daddy.
Discussions are ongoing with Marten Falls First Nation and Webequie First Nation pursuant to a blockade established at McFaulds Lake, the blockade is still in effect. No exploration activity is currently taking place related to the Big Daddy project, and management of the Big Daddy Project has respected this protest since its inception. Management has recently been informed by Webequie First Nation that both Marten Falls and Webequie First Nations held a meeting on February 24th and they further resolved and agreed, and are now hopeful that the “resource companies” will work towards resolving the list of issues by entering into Memorandum of Understanding(s), at which time the blockades will be removed. Management of Spider will continue to work towards resolving the issues by engaging in meaningful discussions with both Marten Falls and Webequie First Nations.
Quality Assurance / Quality Control Protocol
Stringent QA / QC procedures are followed. Samples are shipped to the laboratory in batches of 35 samples. Each sample batch includes 2 standards, 1 blank, and 1 duplicate that are inserted on site, plus a duplicate coarse reject and 1 duplicate pulp that are prepared at the laboratory and inserted. In addition, Actlabs also employs a rigorous in-house QA/QC regime which includes standards, blanks and duplicates.
Once the final assays are received from Actlabs and prior to any data being released to the public, a review of all QA/QC data is conducted by an independent qualified person to ensure that the data released are within predetermined norms.
Analytical Methodology
All samples are assayed / analysed by Activation Labs (Actlabs) at either their main laboratory in Ancaster, Ontario or at their Thunder Bay, Ontario facility. Both laboratories are ISO accredited. All samples are
-
Analyzed for 35 trace and major elements including Cu & Ni by 4 acid digestion with an ICP finish (Actlabs code 1F2). Any samples for which the result(s) are over limit for either Cu or Ni are then assayed for these elements by ICP-OES.
-
Assayed for Au, Pd & Pt by fire assay with an ICP/OES finish (Actlabs code 1C-OES).
-
Assayed for 13 major element oxides, including Cr2O3 by fusion-XRF (Actlabs code 4C).
Qualified Persons
Spider’s VP Exploration James Burns P.Eng., along with Neil Novak P.Geo., President of Spider, have prepared and reviewed this press release; bothare Qualified Persons under Canadian Securities Guidelines.
About Spider Resources Inc.
Spider Resources Inc. is the pioneer exploration company in the James Bay Lowlands of Northern Ontario, and have been exploring this area since 1993. The exploration team at Spider is responsible for the discovery of 8 kimberlites to the east of the Ring of Fire as well as 2 VMS deposits (McFaulds 1 and McFaulds 3), 8 additional VMS occurrences, and the Big Daddy Chromite Prospect within the Ring of Fire. Spider Resources Inc. is a Tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are currently 464,021,767shares issued in Spider.
For further information please contact:
Mackenzie I. Watson Christine Dresch
President and CEO Manager, Corporate Communications
Tel: (514) 878-3551 or 1-888-878-3551 Cliffs Natural Resources Inc.
Fax: (514) 878-4427 216.694.5700
Website: >www.kwgresources.com
