Attention Business/Financial Editors: |
SPIDER RESOURCES INC. - KWG RESOURCES INC. - BRAZIL: CONTENDAS CORE IS DIAMONDIFEROUS
MONTREAL, March 4 /CNW/ - Spider Resources Inc. (''Spider'') and joint
venture partner KWG Resources Inc. (''KWG'') announce that the drill core
recovered from hole 97-04 from the Contendas Structure in Brazil has been
verified by Mineraux Indicateurs Almaz Inc. of Rouyn-Noranda, to contain
diamond. Of the total core sent to the laboratory, 5.3 kilograms was
classified as potentially diamond bearing and subsequently processed by
attrition milling, heavy media separation, yielding one microdiamond.
The host rock for this new diamond occurrence has been identified as
ultramafic, plotting on various diagnostic charts between kimberlite and
lamproite, but more towards the lamproite classification. This statement is
based upon petrographic analysis, whole rock chemistry, probing of phlogopite,
clinopyroxene and ilmenite as well as trace element analyses. The recovery of
various heavy minerals during the processing of the core concurs that the
intrusion is ultramafic, however Mineraux Indicateurs Almaz suggests that the
rock might be further classified as a Type II kimberlite or an orangelte (both
are potentially diamond bearing). Probing of the collection of heavy minerals
from the attrition milling program may be warranted to address the academic
issue of classification.
The Contendas structure was first identified in late 1996 by air-photo
interpretation and geological reasoning. The target structure is situated
beside the Paranaiba River, upstream from numerous active alluvial diamond
operations; therefore, the structure was classified as a high priority
exploration target. Historically, during KWG's alluvial diamond program in
late 1994 and early 1995, a 107 carat diamond was recovered amongst numerous
other lesser size stones which subsequently sold for $US500,000; however, the
operating cost (plus losses due to suspected theft of individual diamonds) for
this alluvial property precluded the operation from being economical. It was
speculated, in late 1995, that a current eroding primary source for diamond
was nearby and upstream of the alluvial sites, since some of the reworked
gravel was found to be quite diamondiferous. A site visit in December of 1996
verified that an eluvial (weathered bedrock) source for diamonds, as
demonstrated by a large garimpo site, was situated within the Contendas
topographic low which had recently been worked. It is reported by the surface
landowner to Spider's manager in Brazil that this 3-4 hectare garimpo site
yielded 5,000 carats of diamond in two short seasons from one deep (14 m) pit,
however this site was shut down by the environmental section of the DNPM due
to lack of proper permits and the use of large mechanized equipment coupled
with environmental infractions and complaints by the surface landowner. The
largest stone recovered in the old garimpo operation was also reported by the
surface landowner to be a 65 carat diamond while the average was in the 1-2
carat size range. This garimpo site is within 100 meters of the collar of
drill hole No97-04 which intersected the diamond bearing rock.
Recent new garimpo workings in the eluvial material are located about 400
meters from the older much larger site and within 300 meters of hole No97-04.
Spider management was present during three months of garimpo work in late 1997
and witnessed the recovery of thirteen marketable diamonds from the processing
of approximately 15 cubic meters of eluvial material form two stratabound
horizons (1m and 3m thick) in the pits representing the ''nouveau garimpo''.
These thirteen diamonds collectively weighed 14.5 carats. The local sale of
nine of these diamonds returned an average value of $US340 per carat. The
diamond bearing stratabound horizons were interpreted as representing
epiclastic tuff within a large lamproite crater; the presence of proximal
diamond bearing lamproite dikes confirms this interpretation.
A continuation of exploration program is being recommended to the Board
of Directors for Spider estimated to cost $US500,000. Startup of this program
is pending the Board's direction and approval. The program includes
additional diamond drilling to attempt to identify the vent area for the
lamproite intrusion which represents the feeder systems to the diamond bearing
crater sediments, together with systematic pit sampling and processing of the
upper tuffaceous beds within this diamond bearing crater. A further bulk
sampling phase may be warranted as a result of the recommended initial program
which would complete the earn in requirements for a 50% interest in this
project from KWG, by completing $US1.8 million in expenditures prior to the
end of 1998. To date, Spider has incurred expenditures of $US700,000.
Spider is a diamond exploration company active in Canada and Brazil,
currently trading on the ASE. KWG is a mining and exploration company active
in Canada, the Caribbean and Far East Russia, currently trading (without
quotation) on the CDN under the symbol KWGR.
NO REGULATORY AUTHORITY WAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
For further information: Mary Peschka, Spider Resources/KWG Resources, (416) 869-0626
This press release concerns more than one organization.
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KWG RESOURCES INC.
SPIDER RESOURCES INC.