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Agoracom
The Small Cap Epicenter
The Small Cap Epicenter
KWG Resources Inc., Montréal, Québec, TSX,V : KWG, is a mineral exploration company with extensive claim holdings in the James Bay Lowlands of Northern Ontario, Canada.
KWG has two property groups: the diamond group and the nickel and base metal group. In October 2007, KWG incorporated Debuts Diamonds Inc. as a wholly owned subsidiary to hold KWG’ s various diamond exploration undertakings.
KWG is pleased to announce that it has entered into a an option agreement with Cliffs Natural Resources Inc., an Ohio Corporation. The Option Agreement grants Cliffs an irrevocable option (the “Option”) to purchase and acquire certain securities of KWG in the aggregate amount of US$3,500,000.
KWG indicated that Cliffs has expressed interest in KWG’s potential claims to ferro chrome deposits and that the Option Agreement provides that Cliffs will not participate in any distribution by KWG of the equity of Debuts Diamonds Inc. Read More
2008 drilling program included 19 drill holes, 14 of which continued the testing of the “Big Daddy" Chromite occurrence.
McFaulds Lake
Freewest Option property: “ Big Daddy ”
Since June 2008, the main exploration focus of the KWG-Spider Joint Venture has been on the massive Chromite occurrence that was first discovered on the Freewest Option property in March of 2006.
As a result of the recent drilling completed, the occurrence is now referred to as the “Big Daddy Chromite Deposit”.
This deposit is located approximately 3.6 kilometers northeast of Noront Resources Ltd's ("Noront") Eagle One Magmatic Massive Sulphide (Nickel Copper and PGM), or five (5) kilometers northeast of Noronts Blackbird One and Two (Chromite) discoveries, and four (4) kilometers southwest of Freewests Black Thor Chromite discovery.
This deposit is located approximately 3.6 kilometers northeast of Noront Resources Ltd's ("Noront") Eagle One Magmatic Massive Sulphide (Nickel Copper and PGM), or five 5 kilometers northeast of Noront’s Blackbird (Chromite) discoveries, as well as 4 kilometers southwest of Freewest’s Black Thor Chromite discoveries. Read More
Big Daddy HIGHLIGHTS
JOINT VENTURE MATTERS
KWG and Joint Venture partner Spider (the optionees), recently received confirmation notice from Freewest (the optionor), that: (i) pursuant to section 2.04 of the Agreement, each of KWG and Spider has incurred an aggregate of $1,500,000 of Expenditures on or before October 31, 2009, of which at least $200,000 was incurred on or before February 28, 2006; and (ii) accordingly, each of KWG and Spider has earned a 25% interest in the Property pursuant to section 2.07 (a) of the Agreement.
In the 'Ring of Fire' KWG owns (in equal share with Spider Resources) 90% of McFaulds Lake East and McFaulds Lake West.
UC Resources has an option to earn an undivided 55% interest in KWG/Spiders properties, the East and West blocks. As part of the option agreement, by spending $4.5 million on the exploration program, the Company will meet its obligations and earn the 55% undivided interest held by Spider and KWG.
Additional claims added to East-West option: In July 2008, KWG acquired from East West Resources Corporation an option to earn a 65% interest in 18 claims consisting of 268 claim units. The 18 claims are located south-west of the Ring of Fire area in northern Ontario. In conjunction with an aerial survey of the 18 claims, KWG acquired an additional 21 claims consisting of 313 claim units in the same area.
Debuts Diamonds Inc
Debuts Diamonds Inc as a wholly owned subsidiary to hold the company’s interests in its diamond exploration undertakings and so separate them from its interests in the McFaulds Lake area, where Noront Resources Ltd. is drilling a significant nickel and copper discovery.
Debuts Diamonds will hold all KWG’s diamond assets when their transfer can be completed. These include the MacFadyen Kimberlites and adjoining Pele and Uniform Surround claims, the Wawa JV, the Kyle JV and the Geraldton claims. Last winter’s sampling results have dictated that 200-ton bulk samples should next be recovered from each of the Good Friday and MacFadyen 2 South pipes.
Contracts are being negotiated for the completion of such a program early next year, at a total cost of some $1.5 million. KWG is exploring the merits of a distribution and listing of the shares of Debuts Diamonds Inc., as a tax-free dividend to its shareholders, in order to accept subscriptions of funding available for this next sampling program.
As recently announced by KWG Resources Inc., it will distribute as a tax-free return-of-capital dividend the shares of Debuts Diamonds Inc. to be issued in exchange for the transfer of its diamond exploration properties. One common share of Debuts Diamonds Inc will be dividended for every three shares of KWG Resources Inc. held by its shareholders.
Débuts Diamonds’ Attawapiskat Property
The Débuts Diamonds’ MacFadyen Property of KWG and joint venture partner Spider Resources Inc., comprises a contiguous block of five (5) mining claims (42 claim units) just south of the Attawapiskat River, in the James Bay Lowlands of northern Ontario
Kimberlite bodies and dykes have been found on the property - the Good Friday, MacFadyen #1 and MacFadyen #2 bodies, as well as two other zones here called the MacFadyen #1b and MacFadyen #2b (separate drill intersections).
The Attawapiskat property is adjacent to the north, of the DeBeers Canada ground that includes the Victor diamond mine which is scheduled to start commercial mining and processing operations in 2009. The DeBeers property also includes their Attawapiskat kimberlite cluster which, other than Victor, consists of 18 kimberlite occurrences. Three of them: Tango Extension, India 1 and Delta 1 kimberlite pipes may in time, following additional development work and the obtainment of good results, be declared economically exploitable. It must be understood that, once Victor’s profitable operations have amortized the capital outlays that were required initially to ensure its successful launch and later continuing profitable operations, that other kimberlite pipes could also be brought on stream, despite being somewhat less economically well-endowed in terms of grade and quality of diamonds than Victor’s.
KWG announced in late August, the further processing of remaining Good Friday Pipe half split drill core (weighing 1,170 kg) and the recovery of 0.54 carats of diamonds suggesting an indicated diamond content of 46.15 cpht, “carats per hundred tons”,.
Two diamonds were found in the +0.85mm fraction of the sample - one weighing 0.425 carat, the second weighing 0.115 carat. Both diamonds were white, transparent, clear and partly translucent, although some inclusions were noted. SGS Lakefield found a 0.230 carat stone as a white translucent fragment with crystal faces showing 85% preservation in their split half of the Good Friday Pipe drill core. Recent results show that a larger sample of the Good Friday Pipe as well as the MacFadyen No.2 Dyke should ultimately be of the highest priority for KWG.
Kyle Kimberlites - Renforth Resources Inc
On July 26, 2006 Renforth, Spider Resources Inc. and KWG Resources Inc. entered into an option agreement whereby Renforth can earn a 55% interest in five diamondiferous Kimberlite properties, consisting of eight claims which comprised of 128 units.
Spider and KWG own 100% interest in the Kyle Properties by virtue of a Joint Venture Agreement. Renforth can earn the 55% interest by Read More
Wawa
In October, 2008, Spider / KWG completed a drill program entailing 4 short, HQ core holes totalling 307 metres. The project was completed under the direct auspices of James Burns, P.Eng. the newly appointed Vice President of Exploration for Spider. The purpose of the recent drilling was to explore to depth the main diamond occurrence that had been mapped and sampled over an area 300 meters by 15 meters (open to north and south) during 2005 and 2006.
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