Spider Resources Inc.

Spider Resources Inc.

May 01, 2007 11:00 ET

Spider Resources Inc. Completes Geophysical Program at McFaulds VMS Project in Northern Ontario

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - Spider Resources Inc. ("Spider") (TSX VENTURE:SPQ) is pleased to announce the completion of a gravimetric survey at the McFauld's Lake volcanic-hosted massive sulphide ("VMS") project, located in northern Ontario in the James Bay Lowlands. The survey crosses McFauld's #1, #2, #3 and #4 VMS occurrences and precedes a planned deep EM geophysical survey over the same grid scheduled for late May or early June. The JVX geophysical crew mobilized to the project area on April 9th and surveying was completed April 17th (three days earlier than planned) including an additional two infill lines.

The initial interpretation of the previous 2005 gravity survey suggested that there was a large gravity anomaly centered near and parallel to the existing base line; basic modeling of the excess mass inferred by the gravity anomaly suggested this mass was located at least 600 metres below the surface. This excess mass anomaly was not explained by the diamond drilling completed on the McFaulds #3 occurrence prior to the first survey, the excess mass was located in the same position at the McFaulds #3 occurrence with respect to the grid and base line and extended much further to the northwest as well as to depth.

2007 Gravimetric Survey Results

Results of the gravimetric survey recently completed and interpreted by Dr. Allan Spector, consultant to JVX Ltd., have been received. The interpretation of the new results, based upon more complete coverage, now suggests that there are present 4 gravity anomalies, coincident with the 4 known and partially drilled sulphide occurrences (McFaulds #1, #2, #3 and #4) all within the main "C" grid, that was extended to the northeast to cover McFaulds #1 and #2 massive sulphide occurrences for the purposes of this new survey. The interpretation that suggested a deep gravity anomaly lying at great depth between McFaulds #1 and #3 in the initial 2005 gravity survey was not confirmed by the new survey data. When referring to McFaulds #3 occurrence, Dr. Spector states "M3 is an egg-shaped gravity anomaly about 0.8 mgal in amplitude, observed on 3 lines; 500E, 800E and 1100E." The anomalous zone has a strike length of about 800m. From modeling it has a thickness of about 20m and a depth extent of over 300m. Dr. Spector estimates that the M3 anomaly represents excess mass of 6 million tons. This estimate is not to be considered a "resource estimate" for the McFaulds #3 massive sulphide occurrence, it is merely an interpretation of mass based upon the measured varying physical properties of the rocks that contain this massive sulphide occurrence, when compared to the surrounding rocks. This information, however, gives management a better understanding of the possible scope or size potential for this partially drilled off massive sulphide occurrence, as well as the other nearby occurrences, that were covered by the present survey. A similar estimate of excess mass can be calculated for the other three anomalies identified in the survey area, however, additional gravity surveying was strongly recommended to close off the definition of these anomalies.

In addition, the gravity data suggests that there is a major fault structure trending NE-SW, located 100 to 150 meters southeast of McFaulds #1 and #3 occurrences, placing these two occurrences equidistant from this gravimetrically rendered fault/contact zone. This structure is noticed in aeromagnetic and electromagnetic surveys completed in 2003 and 2004. It is important to note that McFaulds #5 and #6 occurrence are also located proximal to this same feature, both being equidistant from the contact zone, to the northwest as well. This set of geophysical observations support the concept that the McFaulds Lake occurrences are structurally controlled VMS deposits of the Noranda style, as opposed to replacement style massive sulphide mineralization.

In addition to the geophysical survey, Spider also completed the cutting out of the perimeter around the originally staked claims as required for land surveyors, should Spider elect to eventually bring the property to mining lease status.

The current program was funded entirely by Spider, now the funding obligation for the project will shift to UC Resources Ltd. ("UC"). UC plans on starting their exploration program on this project in early June, consisting of deep geophysical surveying, followed by diamond drilling any anomalies identified by the deep geophysical program and tracing the aforementioned occurrences to depth and along strike.

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 Resources Inc. ("KWG") as per the LOI signed in early March 2007. UC shall then become the operator of the property during the term of their option.

The McFauld's Lake VMS project was initially discovered in 2002, while Spider, KWG and De Beers Canada Exploration Inc. ("De Beers") in joint venture were exploring the project area 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. The claims outlined for the aforementioned perimeter survey define the property that De Beers has the royalty on.

To date, 10 isolated VMS occurrences have been identified and drill tested on the project, two of which have undergone detail drilling. UC plans to continue exploring this new VMS camp.

States Neil D. Novak, President & CEO of Spider Resources Inc.: "Spider is quite pleased with the results of gravity survey on the McFaulds project. The completion of the gravity survey along with the compilation of existing geophysical data for the project, has become even more important in the planning of exploration followup in anticipation of deep electromagnetic surveying followed by deep drilling, the main occurrences as well as exploring the other nearby occurrences. Spider and UC are currently finalizing an updated NI 43-101 report, that summarizes the project results to date and will file same upon completion."

Spider Resources Inc. is a tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are 231,193,535 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