Spider Resources Inc.

Spider Resources Inc.

November 15, 2006 09:00 ET

Spider Resources Inc., Renforth Resources Inc. and KWG Resources Inc. Begin Exploration of Kyle Kimberlites; Collect 550 kg. in First Two Holes Testing Kyle 2

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2006) - Spider Resources Inc. (TSX VENTURE:SPQ) ("Spider") is pleased to announce that Renforth Resources Inc. ("Renforth", formerly Wycliffe Resources Inc.) has informed Spider and its joint venture partner KWG Resources Inc. (TSX VENTURE:KWG) that it has recently completed two NQ size core diamond drill holes designed to determine the geometry of the Kyle #2 kimberlite located in the Attawapiskat area in Northern Ontario.

The two holes intersected kimberlite as set out below. Hole #2 under cut Hole #1 and both were drilled approximately 100 meters north of Hole DR-95-34 that was previously drilled by the Spider/KWG joint venture in 1995 where the JV recovered 9 diamonds with dimensions greater than 0.5 mm in two dimensions from selected kimberlite samples. A total of 34 samples generally being 3 metre sections, have been selected from the core and will be sent for micro/macro diamond analysis at a suitable diamond recovery laboratory. Kimberlite from Hole #1 is estimated to weigh +/- 220 kg., while the kimberlite from Hole #2 is estimated to weigh +/- 330 kg.

About Renforth Resources Inc.

Renforth is a junior resource company focused on the exploration and development of diamond mining properties. Renforth was previously known as Wycliffe Resources Inc., Wycliffe underwent a name change at their last annual general meeting. The company has a large land holding in the James Bay lowlands region of Ontario to the west of the Victor diamond mine that is now under development by DeBeers. The property holding includes an earn-in option arrangement with respect to the five diamondiferous kimberlites known as the Kyle series, as well as thirty nine additional claims that contain airborne geophysical anomalies interpreted as high priority targets for kimberlite exploration.

Drilling Details

Line 75 E - 1+30 N DEN-06-01 DEN-06-02
Dip 52 degrees 62 degrees
Azimuth 180 degrees 180 degrees
Paleozoics 0-86.6 m 0 - 128.75
Kimberlite 86.6 - 139.8 (53.2 m) 128.75 - 209.2 (80.45 m)
Basement Granite 209.2 -241.0
End of Hole 139.8 ( Drill stem problem) 241.0

The management of the drilling program along with the logging and sampling of the drill core was conducted by: Howard Lahti (Ph.D., P.Geo), and Neil Novak, P. Geol., both of which are "Qualified Persons" as defined by National Instrument National Instrument 43-101. Estimates of weight of kimberlite were determined by using the kimberlite core recovery, diameter and length to determine volume, multiplied by the average field measured specific gravity of the kimberlite samples.

Kyle Project JV details (first announced July 24, 2006)

Spider/KWG will retain 45% in the Kyle properties once Renforth has earned its 55% interest, at which time Renforth will transfer 45% interest in its properties to Spider/KWG. No less than seventy-five percent of the annual $2 million expenditure must be dedicated to the Kyle properties in order for Renforth to acquire its 55% interest. Renforth agrees to fund the project in its entirety for the first three years and as such, is the operator during the earn-in option period. Renforth, further agrees, at its discretion, to employ former management to oversee the exploration program until such time as they have completed their earn-in, this facilitates the conveyance of information and familiarity with the project area as well as immediate access to local infrastructure and facilities required to launch an exploration program . Terms of employment with former management will be within normal industry standards. On completion of the Option earn-in, the program converts to a regular joint venture where:

Spider/KWG agree to contribute to 45% of all subsequent exploration and/or development projects on the collective properties, within the guidelines of their underlying JV agreement that was revised earlier this year in May, 2006; and whereby Renforth contributes 55% to all subsequent exploration and/or development on the collective properties.

Pursuant to the revision to the Spider/KWG Joint Venture dated May 12, 2006, KWG agreed to not contribute further to Spider's exploration program on the Kyle Kimberlite project and as such appointed Spider as manager. At present, both parties are deemed to have a 50% interest in the Kyle Kimberlite project. This 50% interest has been translated into an initial equal monetary amount based upon historical expenditures of about $11.84 million on the Kyle project, being approximately $5.92 million each. Once Renforth has earned its 55% interest in the project, the underlying agreement terms will apply to Spider and KWG in determination of their respective interests. The collective exploration cost incurred by Renforth thus far on the project is in the order of $300,000.

Spider Resources Inc. is a tier 2 junior resource company, quoted for trading on the TSX Venture Exchange under the symbol "SPQ" and there are currently 240,344,390 shares of Spider issued and outstanding.

On Behalf of the Board of Directors.

Neil Novak, President and CEO

The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

Contact Information

  • Spider Resources Inc.
    Neil Novak
    President and CEO
    (416) 815-8666
    Spider Resources Inc.
    Jim Voisin
    Communications Manager
    (519) 699-5352
    Website: www.spiderresources.com