KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

August 30, 2007 09:59 ET

KWG Interest Adjoins Noront Discovery

MONTREAL, CANADA--(Marketwire - Aug. 30, 2007) - KWG Resources Inc (TSX VENTURE:KWG) applauds the mineral discovery announced by Noront Resources Ltd (TSX VENTURE:NOT) - to quote from their News Release, "(...) copper sulphide mineralization (chalcopyrite) in a pyrrhotite-chalcopyrite-peridotite geological setting (...)," in two (2) diamond drill holes with an estimated mineralization true width of 50 meters. The reported mineralization occurs in claim units that are adjacent to a group of 78 claim units optioned by KWG and Spider Resources Inc (TSXV:SPQ) from Freewest Resources Canada Inc (TSXV:FWR) under which a 65% interest may be jointly acquired by a KWG/Spider partnership. KWG and Spider have contributed equally to the cost of exploration of the claim block in order to earn their respective 50/50 interests in the option. Under terms of the option agreement with Freewest, the KWG/Spider Joint Venture may earn up to a 65% operating interest in any mining joint venture on the JV property by undertaking a positive feasibility study and providing production financing for any mineable deposit.

The discovery announced by Noront, establishes substantial geological encouragement for the future potential and variety of mineralization types in the complex units comprising this part of the Sachigo Greenstone Belt, already including the very positive volcanogenic massive sulphide (VMS) discoveries reported by the KWG/Spider Joint Venture, and other VMS exploration discoveries by MacDonald Mines Exploration Ltd (TSXV:BMK). If assays determine that the mineralization recovered in the Noront drill core is as it would appear to be from visual inspection, then the chromitites in peridotite found in previous and adjacent drilling reported by the KWG/Spider Joint Venture, and the titaniferous magnetites reported by MacDonald Mines Exploration Ltd may indicate substantial differentiated Archean mafic-ultramafic magma chambers that are exploration targets in their own right for copper-nickel-in-pyrrhotite as well as being the possible heat engines that drove the formation of the known VMS mineralization - in short, these discoveries may be related to regionally significant mineralizing events. Positive assays on the Noront drill core would certainly support the possibility that the region harbours mineralization of potential economic significance.

Hadyn R. Butler, P.Geo has reviewed the information contained herein and is a Qualified Person retained by the Company for the purpose.

Shares issued and outstanding: 188,144,578

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)
    www.kwgresources.com