Spider Resources Inc.

Spider Resources Inc.

October 01, 2007 12:03 ET

Spider & KWG JV Up-Date and Plans to Drill Targets in Vicinity of the New Noront Copper-Nickel-PGE Discovery

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2007) -


Spider Resources Inc (TSX VENTURE:SPQ) ("Spider") and KWG Resources Inc (TSX VENTURE:KWG) ("KWG") plan to drill selected geophysical (airborne with ground follow-up) targets approximately 3300 meters east-north-east of the new Noront Resources Ltd (TSX VENTURE:NOT) magmatic nickel discovery. Previously (news release dated March 7, 2006) KWG and Spider (the "JV Partners") discovered significant chrome-PGE-nickel mineralization in a layered peridotite in their first drill-hole in the target area. Noront's recent (September 2007) nearby nickel-copper-PGE discovery provides both genetic context to these earlier results and consequent high encouragement for the testing of the JV's adjacent targets.

Spider & KWG equal in 65% earn-in

The JV partners are currently planning a $2 million program this winter in order to vest a joint 50% interest (25% each) under their option to earn up to a 65% interest from Freewest Canada Resources Inc (TSX VENTURE:FWR) in the 78-unit claim group. A number of untested drill targets suggested by the geophysical data are being studied and prioritized for drilling.

Spider & KWG equal in McFauld's, next to Noront

Both Spider and KWG also have equal interests in their other assets in the McFaulds Lake area. The Spider/KWG Joint Ventures include the adjacent (both to the east and west) McFaulds Lake Project where 10 discoveries of copper and zinc mineralization have been made since 2002.

The 2296-unit McFaulds East and McFaulds West claim group constitute the McFaulds Lake Project which in turn adjoins the Noront claims and is one of the largest land holdings in the area, covering some 360 square kilometres.

UC Resources Ltd (TSX VENTURE:UC) has recently expended approximately $1 million on the McFaulds Lake Project , by completing ground geophysics (gravity and UTEM) as well as diamond drilling 7 holes thus qualifying UC for their first phase earn-in for a 10% undivided interest in the project, reducing KWG and Spider to 45% each on this project. UC may elect to enter their second phase at any time, to earn up to a total 55% interest in these properties.

Spider & KWG own 6 area targets

The Diagnos Initiative is another 50%/50% JV between KWG and Spider comprising 6 widely dispersed claims east and north of the McFauld's Lake area, each containing a geophysically interpreted target, all of which were selected by the Diagnos Inc (TSX VENTURE:ADK) proprietary computer-assisted algorithms, confirming or re-prioritizing other geophysical interpretation techniques that were instrumental to first bringing the joint venture to the Greater James Bay Lowlands project area in 1993. The parties are considering a drilling program to test the 2 highest priority targets this winter.

Spider & KWG share three diamond discoveries

The Spider/KWG Joint Ventures also include three diamond projects each of them being original JV discoveries including; the Wawa Project, the MacFadyen Project and the Kyle Project. The MacFadyen and the Kyle kimberlite swarms are in the Attawapiskat River basin of the James Bay Lowlands, proximal to the De Beers Victor Diamond Mine that is in its last stages of construction and development, scheduled for start up in late 2008. The MacFadyen project is contiguous to the Victor project, while the Kyle kimberlites are located about 100 kilometres to the west, in the vicinity of where the McFaulds Lake VMS occurrences and the Noront discovery are located.

The Kyle Project has been optioned to Renforth Resources Inc, which may earn up to a 55% interest by completing total expenditures of $6 million over a newly agreed four year period. Renforth is nearing completion of their initial program, where it is anticipated that they will have spent $2 million in exploration and other expenditures related to their initial earn-in requirements for a vested 20% interest in this exciting diamond project. KWG and Spider currently jointly hold the remaining 80% interest.

The Wawa project is located northeast of Lake Superior near the town of Wawa, this project has been active since 1996, when diamonds were first discovered in bedrock in the area. Since then, other junior explorers have taken up land positions surrounding the Spider - KWG land position. The Joint venture is planning a follow up drilling program on this property to be completed in the next 6-8 months.

KWG operates MacFadyen; Spider operates Wawa

KWG has elected not to participate in funding the Wawa, Kyle and McFaulds Lake projects' exploration programs until its 50% JV interest has been reduced to 33%, Spider is the operator for these three projects. Spider has elected not to participate in funding the MacFadyen project exploration programs until its 50% JV interest has been reduced to 33%, KWG is the operator of the MacFadyen project. The Diagnos Initiative project and the Freewest Option project are equally held, with operatorship switching from year to year.

Financing and Working capital

Spider recently announced a financing on a best efforts basis with IBK Capital of Toronto, Ontario. Proceeds from this financing will be partially used for the Freewest option, as well as exploration on other projects as mentioned herein. There are no financial requirements of the Corporation for the McFaulds Project or the Kyle projects at this time. In addition to the best efforts financing with IBK, Spider has recently received approximately $647,700 from the exercise of warrants and options to the date of this press release. Spider is now well financed to continue an aggressive exploration program.

Spider Resources Inc. is a tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are 249,169,967 shares issued in Spider.

On behalf of the board of directors,

Neil Novak, President and CEO

This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Contact Information

  • Spider Resources Inc.
    Toronto Head Office
    #1000, 15 Toronto St. Toronto Ontario, M5C 2E3 Canada
    (416) 815-8666
    Spider Resources Inc.
    Jim Voisin
    Communications Manager
    (519) 699-5352
    Website: www.spiderresources.net