KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

August 21, 2007 09:30 ET

KWG Encouraged by Partial Diamond Sample Results

MONTREAL, CANADA--(Marketwire - Aug. 21, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) has been advised that final results of the diamond recovery and analysis now underway at SGS Lakefield, will not be available for some weeks yet. The revised timetable for the completion of this work accompanied delivery of the final sorting and caustic dissolution results late last week. The Company has not yet had an opportunity to thoroughly study and analyze these much-delayed test results but is encouraged by the data to date.

Caustic dissolution of a representative 32-kilo mini-sample, from each of the four bulk samples being analyzed, yielded a total of 59 so-called "micro" diamonds. The MacFadyen 1 sample yielded 26 of these, the MacFadyen 2 and 2 South samples yielded 19 and the Good Friday sample yielded 14. The diamonds recovered were consistent in size and quality to those contained in samples recovered from these same kimberlites in 1994 and 2004.

In addition to the 0.23 carat diamond recovered from the Good Friday sample, as previously reported, a 0.053 carat diamond was recovered from the MacFadyen 2 sample in the dense media, separation and sorting procedure. The Company's preliminary analysis of these results, taken together with data from earlier sampling, dictated that further test procedures should be undertaken to analyze the possibility that either two diamond populations may have been encountered or additional liberation procedures may be required. Accordingly, caustic dissolution of representative sorted tailings samples is now being completed and the total reduction of all tailings from the SGS Lakefield sorting program will be completed by attrition milling under the supervision of Company Chairman Dr. Mousseau Tremblay. Results of the caustic dissolution are expected within one month; the attrition milling results are anticipated to follow within some weeks thereafter.

The partial results of this third sampling from the MacFadyen Kimberlites have added encouragement to the possibility that one or more of these four pipes may prove to contain diamonds of a quality that enables economic recovery by the adjacent Victor plant of De Beers. The Company is therefore presently examining with De Beers, under the provisions of their Mutual Assistance Agreement, the feasibility of recovering one or more larger samples this winter.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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)
    or
    visit our website:
    www.kwgresources.com