MONTRÉAL, Aug. 9 /CNW/ -- KWG Resources Inc. ("KWG") in consultation with co-optionee Spider Resources Inc. ("Spider") has received approval from the Big Daddy Technical Management Committee for its proposed program of deep drilling and bulk sampling. The Big Daddy Technical and Management Committee is comprised of representatives of each of KWG, Spider and Freewest Resources Canada Inc. ("Freewest").

KWG has proposed a program of up to $4 million designed to upgrade the previously reported inferred mineral resources (see joint news release of KWG and Spider of May 3, 2010) into the indicated mineral resources category (as defined by CIMM) that includes a test of a large part of the substantial downward extension of the mineralized body indicated from interpretations of its geophysical evidence, where most of the inferred resources lay. Twelve deep drill holes are planned to test for the down-dip extension of the mineralization. The successful execution of the drilling program might identify a mineral resource recoverable by underground bulk mining techniques that could more than double the size of the deposit when added to the surface-recoverable resources identified to date. The results could then be used to inform a pre-feasibility study of an integrated combined surface and underground mining and development plan. The proposed program also includes a bulk sample of the deposit's mineralization and beneficiation testing from massive chromite mineralization collected from either a surface stripping program or large diameter core drilling.

Planning and preparation is now underway to see completion of the entire sample recovery portion of the program this fall. Analytical results from testing of the drill core samples are expected to be obtained over the ensuing months. KWG has operatorship of the Big Daddy project through March 31, 2011 under the option agreement by which it may earn a 30% joint venture interest in the mineral property, where a significant chromite deposit has been partially identified to date. The program has been planned and budgeted so that its completion will result in the vesting of a 28% interest in the project in each of KWG and Spider, who may then both earn an additional 2% interest by each incurring a further $2.5 million of exploration expenditures prior to March 31, 2012.

KWG's wholly-owned subsidiary, Canada Chrome Corporation, is continuing laboratory soil testing of the 754 auger drill samples collected on the claims it has staked on a proposed transportation corridor related to the Big Daddy project. The results of these lab tests by Golder & Associates are expected to be completed in the fourth quarter of this year. This data may then be incorporated into an engineering preliminary feasibility study being prepared by Krech Ojard & Associates, from which land use planning consultations may then be undertaken.

M. J. Lavigne, P. Geo., Vice-President Exploration & Development of KWG is the Qualified Person supervising the proposed program and has approved the contents of this release.