Spider Resources Inc.
TSX VENTURE : SPQ

Spider Resources Inc.

March 23, 2006 09:23 ET

Spider/KWG Receive SGS Lakefield Research Report on Rock Characteristics of Wawa Diamond Project

TORONTO, ONTARIO--(CCNMatthews - March 23, 2006) - Spider Resources Inc. (TSX VENTURE:SPQ)("Spider") along with joint venture partner KWG Resources Inc. (TSX VENTURE:KWG)("KWG") announce the receipt of a report prepared by SGS Lakefield Research Limited entitled "The Ore Characteristics of Samples from the Wawa Deposit", dated March 3, 2006. The preliminary caustic fusion diamond results were previously disclosed in a press release issued February 20, 2006. This report presents and discusses the potential beneficiation (crushing and separating rock into valuable substances or waste by any of a variety of techniques) of the diamond bearing xenolith from the matrix that hosts the xenolith in a particular diamond occurrence located on the joint venture's 45 square kilometer property situated 35 km. north of Wawa, Ontario. The report presents details of the various laboratory tests performed on three samples, representing the xenolith fraction, the matrix fraction and ROM (run of mine) composite fraction. These tests were designed to better understand the overall recoverability of diamond from the rock, and to determine what process(s) can be used to separate the diamond bearing xenoliths from the less diamondiferous matrix. Tests included but were not limited to; geochemistry, mineralogy, specific gravity and bulk density, magnetic susceptibility and grindability. The SGS Lakefield Research Report erroneously refers to the sampled rock as "ore" throughout, and occasionally the word "mine" is mentioned therein. The reader is cautioned that neither Spider or KWG consider the Wawa project to be hosting "diamond ore" in the proper sense of the phrase at this time, nor is there a "mine" currently present on the property. The aforementioned words were used by the rock beneficiation department at SGS Lakefield Research only, as they typically process and study "ores" from various other deposits. The program that SGS Lakefield Research was mandated with, in this case deals with the rock characteristics and the recoverability of xenoliths and contained diamonds therein. The following text represents excerpts from the Summary and Conclusion section of the in-house report.

"It was determined that both rock types (matrix and xenolith) have similar mineralogical assemblages of amphibole, carbonates, mica, plagioclase-feldspar and quartz, but the relative abundances of those phases within the two rock types are different. The xenolith rocks consist mainly of amphiboles (79%) and mica (11%) while the predominant minerals in the matrix are mica (48%), plagioclase feldspar (27%) with lesser amounts of amphiboles (11%)."

"The two rock types have similar physical properties. The xenolith rocks are slightly heavier on average, but their distribution of density overlaps that of the matrix. A density separation approach (Dense Media Separation) may be considered to beneficiate the xenolith, but significant inefficiencies will occur, although any free diamonds would be recovered with the xenolith rocks."

"The distribution of the magnetic susceptibility for the xenolith and matrix rocks are very similar, so magnetic separation can likely not be used for xenolith beneficiation. Magnetic separation can only be used to separate liberated diamond. Any locked diamond would likely be rejected with the magnetic phase."

"Both rock types depicted similar responses to grindability testing at various energy input levels, which eliminates selective grinding as a potential beneficiation aid. The two rock types are very hard in comparison with other (kimberlitic) diamond ores, which will make the diamond liberation process more difficult. A multi-stage separation approach, with intermediate low energy input grinding, is recommended to maximize diamond liberation, while minimizing diamond breakage. Some diamond breakage and/or losses will be unavoidable."

"Ore sorting (as performed at the site) is likely to be the most successful beneficiation route. Electronic sorting, based on image analysis, can sort rocks by colour and/or shape. This may be combined with dense-media separation in the processing flowsheet."

"The MgO, Cr, Ni (and others such as Al, Na, P, Sr, etc.) can be used as a guide to differentiate between the xenolith material and the matrix. This will require a relatively simple analytical technique to measure and could be done on site with portable XRF (xray fluorescence) instrumentation. Alternatively, with the higher LOI (implying high OH content) of the matrix material and mineralogical differences (more mica in matrix) suggest that hand held PIMA-type device may also be useful in sorting matrix from the xenoliths."

"The parallel caustic fusion work confirmed the preferential concentration of micro-diamonds in the xenollithic rocks."

Details of that work have previously been released (February 20, 2006), but are re-presented here for ease of reference:



---------------------------------------------------------------------
greater
Sample Sample wt. Total wt. Total # than
reference (kg) (carats) rec. .105 mm
---------------------------------------------------------------------
Representative Samples
---------------------------------------------------------------------
Matrix 16.49 0.008 67 48
---------------------------------------------------------------------
Xenolith 16.03 0.051 244 93
---------------------------------------------------------------------
ROM 16.54 0.006 86 53
---------------------------------------------------------------------


---------------------------------------------------------------------
greater greater greater greater greater
Sample than than than than than
reference .150 mm .212 mm .300 mm .425 mm .600 mm
---------------------------------------------------------------------
Representative Samples
---------------------------------------------------------------------
Matrix 17 0 1 0 1
---------------------------------------------------------------------
Xenolith 80 36 22 12 1
---------------------------------------------------------------------
ROM 23 8 2
---------------------------------------------------------------------


"A total of 244 diamonds weighing 0.051 carats were found in the xenolithic material compared to 67 and 87 for the matrix and ROM, respectively. Sixteen diamonds in the xeno sample were greater than 0.5 mm in at least one dimension compared to only one in the matrix, indicating that the xenolith preferentially host the largest diamonds. The xenolith diamonds were also whiter on average."

In summary, the testwork done on the selected samples is encouraging, as there are physical properties that distinguish the host relatively diamond-poor matrix from the relatively diamond-rich xenolith portion of the rock. These differences can be utilized in the design of a flow sheet as required for the processing of the rock, that may cost effectively liberate diamonds from the rock in a production situation, if and when warranted. The beneficiation study suggests that simple electronic sorting coupled with dense media separation may be the preferred route to take in processing the Wawa diamond bearing rocks.

All samples reported upon herein were selected by James G. Burns P.Eng., (Independent Qualified Person) Neil Novak P.Geo. (representative of Spider/KWG Joint Venture), and Andre McKen (representative of SGS Lakefield Research Ltd.). The 3 samples were processed by caustic dissolution at the SGS Lakefield Research laboratory located in Lakefield, Ontario. They have provided individual descriptions (xyz dimensions, crystal descriptions, actual carat weight of larger stones). The samples reported herein were individually bagged and sealed by James Burns P. Eng. and delivered by a bonded carrier to the Lakefield Laboratory in Lakefield, Ontario where the samples underwent micro diamond recovery and observation (MDob) using Caustic Fusion followed by microscopic examination for micro diamonds, from various sieve sizes of the caustic fusion product. Only those diamonds that were captured on a 0.105 mm sieve or greater were collected and reported upon. The technical information presented herein, was compiled and prepared by Neil Novak P.Geo. in his capacity as the appointed manager of the KWG - Spider Ontario joint venture.

Spider is now planning the follow-up to the SGS Lakefield Research recommendations. Plans include diamond drilling the main diamond occurrence that has been mapped and sampled over an area 300 meters by 15 meters (open to north and south). A current NI-43-101 report is being prepared and finalized by James Burns P.Eng., that summarizes all of the exploration work done on this property since its acquisition in 1996, this report will be filed with Sedar upon completion. As this project falls within the scope of what Spider has agreed to with KWG pertaining to amendments to the existing joint venture, and since the Wawa project is a focus project for Spider and not KWG, Spider will continue the exploration work on this project alone. Under the terms of the proposed new amendment to the joint venture, KWG will have the option of participating in additional exploration work on this project, once their interest is diluted down to 33.3%.

Spider Resources Inc. is a tier 2 junior resource company, quoted for trading on the TSX Venture Exchange under the symbol "SPQ". There are currently 216,443,280 shares issued in Spider.

On Behalf of the Board of Directors

Neil Novak

President and CEO

For more information on Spider Resources Inc. and its' other exploration projects please visit our website www.spiderresources.com

The TSX Venture Exchange has reviewed the content of this release however it does not accept responsibility for its adequacy or accuracy.

Contact Information

  • Spider Resources Inc.
    Jim Voisin
    Communication Manager
    (519) 699-5352
    or
    Spider Resources Inc.
    Neil Novak
    Chief Executive Officer, President
    (416) 815-8666
    www.spiderresources.com