KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

January 24, 2007 12:46 ET

KWG Mobilizes MacFadyen Kimberlite Drill-Program

MONTREAL, CANADA--(CCNMatthews - Jan. 24, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) has mobilized a drill to its MacFadyen Project. The company plans to drill a series of holes on each of the project's five targets, three of which yielded diamondiferous kimberlites in previous drill-sampling.

The drilling program objective is to further define the size of the five kimberlite targets and analyze the cores for Diamond content and quality. The planned program would recover some 2,000 meters of core samples by early April, from the five targets. KWG has budgeted to then analyze some 16,800 pounds of those kimberlite samples in a standard dense media separation mill. This will determine, by sometime in June, the number, size and quality of any diamonds recovered from the samples. The authors of a recent Technical Report concluded that a more comprehensive diamond distribution analysis should be undertaken, because previous work determined that indicator mineral presence in the tested kimberlites is highly analogous to that contained in the kimberlites that will be mined at the Victor Mine.

The planned program, recommended in the Technical Report co-authored last April by Dr. Mousseau Tremblay, P. Eng. and Hadyn R. Butler, P .Geo, could not proceed until completion of the Exploration Agreement with the Attawapiskat First Nation which was announced in September. Under its provisions, and those of the Mutual Assistance Agreement completed with DeBeers Canada Inc. last February, KWG has access to various DeBeers facilities at the Victor Diamond Mine which is immediately adjacent to the MacFadyen Project. These facilities include the winter road from Attawapiskat to the Victor site. The drill-rig is now in transit to the Victor-MacFadyen site and will be moved from Moosonee to Attawapiskat and then onward to Victor-MacFadyen as soon as the winter road opens, expected by month's end. A camp crew is preparing the nearby Fire Camp, which has been leased for the project.

The program is budgeted to cost $1.5 million, which will be entirely funded by KWG. Last May, KWG and Spider Resources Inc. announced that under an amendment to their joint venture agreement, KWG had elected to increase its interest in the MacFadyen project to 66.67% by incurring the next $3.83 million of exploration expenditures.

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Contact Information

  • KWG Resources Inc.
    FRANK C. SMEENK
    President and CEO
    416-642-3575
    514-866-6193 (FAX)
    or
    KWG Resources Inc.
    MICHEL COTE
    Director
    514-866-6001 - Ext. 266
    514-866-6193 (FAX)
    www.kwg-resources.com