Spider Resources Inc.

Spider Resources Inc.

October 23, 2007 13:00 ET

Spider Resources Inc. and UC Resources Limited Update on Diamond Drilling Program at McFaulds VMS Project in Northern Ontario

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2007) - Spider Resources Inc. ("Spider") (TSX VENTURE:SPQ), and UC Resources Ltd. ("UC") (TSX VENTURE:UC) announce the receipt of assays from the summer drill program at the McFauld's Lake volcanic-hosted massive sulphide ("VMS") project, located in northern Ontario in the James Bay Lowlands.

Hole McF-07-75 and McF-07-76 as previously announced (September 4, 2007) intersected massive sulphide mineralization containing appreciable chalcopyrite and sphalerite. Additional holes were also drilled in the summer program that ended on August 23, results of which have recently been received from the laboratory. These holes include McF-07-77 to McF-07-79.

Some of the highlights of the summer 2007 work program include:

- A total of 2,354 meters have been drilled in seven holes, all of the assays are now available;

- Previously announced drill hole McF-07-75 over 19.02 meters encountered 2.69% Cu, 4.35% Zn, 0.35 g/t Au and 6.63 g/t Ag;

- Previously announced drill hole McF-07-76 over 7.5 meters encountered 1.8% Cu, 3.3% Zn, 0.22 g/t Au and 7.47 g/t Ag;

- A preliminary resource estimate is currently underway by Scott Wilson RPA to include the recent drilling into a comprehensive NI-43-101 update report.

Drill hole McF-07-77 was started on July 25 on line 8+00 N being the same section as previously announced hole McF-07-74, however the drill collar was moved closer to the intended target. Hole 77 initial dip was steepened to -85 degrees drilling grid south. Once again this hole started flattening as it did in Hole 74, even using two hole stabilizing equipment. The hole was allowed to continue, eventually at a much less flattening rate. The hole intersected the target zone at 458.9 meters and remained in the altered (mineralized) zone until 504 meters, the hole was drilled for a total length of 543 meters. The mineralization at this depth consisted of a magnetite rich chlorite - semi massive sulphide (chalcopyrite, pyrrhotite and pyrite) zone over 45.1 meters, short (centimeter scale) bands consisted of massive to semi-massive pyrrhotite - chalcopyrite. Samples were selected over the entire mineralized section, however only low values were returned from the laboratory, best assay received was 0.16 % Cu over 2.8 meters between 471.7 and 474.5 meters downhole.

Hole McF-07-78 commenced on August 4, this hole is located on Line 9+50 NE, this hole was completed during a site visit by management on August 13 at a depth of 500 meters, The mineralization encountered consisted of a chlorite rich - magnetite zone between 474.1 meters to 488.8 meters, which included a 4.4 meter (477.9 to 482.3) semi-massive sulphide zone consisting of pyrite, chalcopyrite and pyrrhotite, undercutting the mineralized zone in hole McF -04-55. Samples were selected from the entire mineralized section, best assays received were 477.9 to 482.3 that averaged 0.84% Cu over 4.4 meters.

Hole McF-07-79 commenced on August 15, this hole is located on Line 7+50 NE and was designed to undercut holes McF-04-22, McF-04-23, McF-04-24 and McF-04-56(drilled by Spider Resources Inc. in 2004) to test for a south-westerly plunge of the main copper zone, attempting to intersect the main mineralized zone 75 meters below McF-04-56. This hole was completed on August 23 at a total depth of 413 meters. The main mineralized zone was encountered below hole 56 as well as approximately 75m and 25m down dip and to the west of MCF-05-59 (7.9%Cu over 8m) and 25m west of 04-29 (4.4%Cu over 2.9m). This hole hit the mineralized zone at 360.58-384.55m. The majority of mineralization consists of disseminated and thin bands of massive fine grained magnetite and minor pyrite. The lower section, over a few meters, had less magnetite and erratic small patches and disseminations of pyrite and chalcopyrite. Samples were selected for analysis over the mineralized section, best assay received was between 382.5 and 384.5 meters downhole that averaged 0.14 % Cu.

As previously announced (September 4, 2007) recall that drill hole McF-07-75 was set up on line 8+25 N and the initial dip was -64 degrees for a total length of 192 meters. The hole was designed to overcut historic 2004 hole McF-04-41 (6.49% Cu and 3.45% Zn over 8 meters) and infill an area in the mineralized zone that had not been previously tested, as required for an update on the resource estimate for this occurrence. The main mineralized zone was encountered between 164.28 meters and 183.3 meters (19.02 meters). This entire section averaged 0.35 g/t Au, 6.63 g/t Ag, 2.69% Cu and 4.35% Zn over 19.02 meters.

Also as previously announced drill hole McF-07-76 was started at the same set up as hole McF-07-75, however the dip was decreased to -49 degrees, thus testing another area as required for resource estimate update. The hole was completed a total core length of 178 meters. The main mineralized zone was encountered between 154 meters and 161.5 meters (7.5 meters), previously reported as from 152.66 meters and 160.13 meters (7.47 meters), however there was a drill hole measurement error caught during detail logging and sampling. This entire section averaged 0.22 g/t Au, 7.47 g/t Ag, 1.8% Cu and 3.3% Zn over 7.5 meters. In this hole copper values were higher near the top of the mineralized zone where from 154 meters to 159.21 meters (5.21 meters) the copper value average 2.49%. Gradationally below this, from 157 meters to 161.5 meters the zinc value averaged 4.64%.

A total of 2,354 meters was drilled in 7 holes, results have now been received for the seven holes. The on-site field aspects of the project were overseen by Dr. Howard Lahti P.Geo., an Independent Qualified Person and Mike Kilbourne, both of which are in the employ of Billiken Management Services Inc. of Toronto. Billiken Management Services Inc. is a holder of a Certificate of Authorization issued by the Association of Professional Geoscientists of Ontario.

All samples reported upon herein were selected by either Howard Lahti or Mike Kilbourne and were cut in half by diamond core saw. Individual samples were labeled, placed and sealed in plastic sample bags. Groups of samples were then placed into durable rice bags that were secured by project security tags and then placed into plastic pails for shipping. Plastic pails were secured using tie locks and delivered via bonded carrier to ALS Chemex sample preparation laboratory in Thunder Bay, Ontario. All samples were then crushed and pulverized, then sample pulps were sent to ALS Chemex Laboratory in Vancouver B.C. for analysis, remaining coarse reject portion of the samples remain in storage at the ALS Chemex storage facility in Thunder Bay. In Vancouver, the samples underwent multi-element analysis using ALS Chemex assay procedure ME-MS61, when samples received over-limit values they underwent further analysis using ALS Chemex assay procedure Cu-OG62 (for copper) and Zn-OG62 (for zinc). For gold analysis, all samples underwent Au-ICP21 analysis. The reader is referred to www.alschemex.com for details of analytical procedures.

The current program was funded entirely by UC Resources Limited ("UC"), in compliance with their funding obligation for the project. UC has an option to earn-in up to a 55% undivided interest in the McFauld's Lake project, which is currently owned as to an undivided 50% interest, by each of Spider and KWG, as per the LOI signed in early March 2007. UC is the operator of the property during the term of their option as outlined in the LOI. UC during this phase of exploration expended approximately $1.0 million to complete their initial option earn-in on the property (total expenditures are being reviewed by management of UC to be presented to Spider and KWG).

The McFauld's Lake VMS project was initially discovered in 2002, while Spider, KWG and De Beers Canada Exploration Inc. were exploring the project area in joint venture for kimberlites. De Beers holds a 1.5% net smelter royalty on the project, 0.5% of which can be purchased from De Beers by Spider and KWG for $1.5 million. To date, 10 isolated VMS occurrences have been identified and drill tested on the project, two of which (McFauld's #1 and #3) have undergone detail drilling. The McFaulds Lake area is also host to other VMS occurrences, discovered by Probe Mines Ltd. and MacDonald Mining and Exploration, as well as nickel bearing chromitite with platinum group metals in a layered peridotite geological setting as discovered by Spider, KWG and Freeewest in early 2006 as well as the new Copper-Nickel-Platinum Group Element discovery by Noront Resources Ltd.

UC advises Spider that they are reviewing this project area and are currently planning a program to continue their exploration efforts on the other McFaulds VMS occurrences, while also looking for Noront look-alike anomalies in their vast land package that has been acquired covering a total of ten other VMS occurrences in the area through year two, three and four of the agreement. The next phase of exploration activity will involve participating in a regional airborne survey, along with other junior exploration companies active in the area.

This press release has been prepared by management of Spider Resources Inc. and has been approved for dissemination by Neil Novak P.Geo. of Cambridge, Ontario, a Qualified Person under Canadian Securities guidelines, in his capacity as President for Spider Resources Inc.

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 284,567,610 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.com