Before I comment directly to todays NR...I'd like to give an overall picture as to where we stand...It is becoming more and more apparent , that when the NOT "stealoffer" of FWR is REJECTED, that Cliffs or it's associate MAJOR will buy/acquire the Chrome deposits of SPQ/ FWR/KWG, and they are likely to put them in a seperate Comp.
Meanwhile SPQ/FWR/KWG, will get to keep all their properties in the ROF and elsewhere, the only difference being the sale/acquisition of our Chrome int in Big Daddy...SPQ will still hold a vast land claims in the ROF, including McFaulds East and West, which is optioned to UC, who will spend the money exploring, SPQ will still hold soome Large number of "diamond" properties, in and out of ROF, and a LARGE number of claims at the ROF, at the East bend , below BMK...I' liking very much the Geology in this area, which is virgin territory, and which holds great potential in my view... The amended agreement between SPQ/KWg still stands and SPQ is positioned to earn a larger % int from KWG on all these remaining claims...so we have alot to look forward to in the coming years from SPQ...below is a snippet from NR to this effecr...I also beleive this "formula" will apply to all the claims eventually, since KWG has dcided to concentrate on only their diamonds,,,
In May, 2006 Spider and KWG had collectively spent $2,077,353 on this project. Spider elected to advance this project and was appointed manager. Under the terms of the Wawa joint venture with KWG, the non-manager will not participate in any program until the manager has spent an amount equal to its 50% interest (for Wawa this equates to 50% of $2,077,353 or $1,038,677) thereby increasing to 66.67% its interest in the project. When the non-contributing party's interest has thus been reduced to 33.33% it may elect to contribute to future programs to maintain its interest, or be diluted down to a 10% working interest. At 10%, the interest will be automatically converted into a 1% net proceeds from production royalty in the case of diamonds, or a 1% net smelter royalty in the case of precious metals (for primary precious metal deposits), or a 0.5% net smelter royalty in the case of base metals. Since May 2006, and as of June 30, 2009, Spider has solely incurred unaudited expenditures on this project totaling approximately $221,000, thus Spider’s current interest level is approximately 56.2%, leaving KWG with an approximate 43.8% interest.
My thoughts are that todays NEWS was great, and confirmed some of the previous diamond discoveries mad in the area...below is a copy snippet of the NR results
Details of Drill Holes
lamprophyre”.
The four holes were drilled on lines spaced 100 metres apart with an initial inclination of -45° drilled to the southwest, and designed to cut the dyke at approximately 40 metres below surface. Samples were normally 1.0 metre in length; each sample weighed in excess of 10 kilograms. This report details the diamond recovery results of these four holes.
As reported in November 2008, Hole 08-01 was drilled at -45° SW, and intersected the dyke between 61.2 and 68.4 metres (measured along the core). Xenolith content varied from 1 to 10 xenoliths per sample. The maximum dimension of the xenoliths (as cut in the core) was less than 5 cm, however one xenolith in sample #106 measured 15 cm.
Hole 08-02, also drilled at -45° SW, cut a 5.25 metre interval of xenolith bearing dyke between 64.1 and 69.35m. Xenolith content varied from 3 to 9 per sample, and the maximum dimension of xenoliths was 6 cm. Hole 08-03, drilled at -45° SW, intersected two lamprophyre dykes – the main dyke from 37.95 to 47.60m and the second 69.4 to 72.25m. Xenolith content varied from 1 to 13 per sample, and xenolith size, although generally less than 6 cm, varied up to 15 cm.
Hole 08-04, drilled at -75° SW, undercut Hole #3. This hole also cut two dykes – an upper from 2.44 to 8.00m and the main dyke from 35.9 to 49.8m. Xenolith content varied from 0 to 17 per sample. The maximum xenolith size cut was 15 cm.
All 42 samples collected were of whole core, and these were shipped to SGS Lakefield for diamond recovery from representative 8 kg samples. Photographs of the each entire hole were taken by James Burns, P.Eng., as a permanent record of drilling.
Neil Novak, President and CEO of Spider states “The recently received caustic dissolution diamond results continue to confirm that diamonds on this project appear to be related to and a function of the preponderance of talc-actinolite xenoliths, that are presumably mantle derived brought to surface along during the emplacement of the lamprophyre dyke. When we see a high number of xenos in the rock we are now more confident that the diamond content will increase. The next step is to try to determine whether the xenos are easily separable from the host ....
In my view, these are great results, with numerous diamonds being found, although not enough to now be profitable but, which suggests further drilling with the view of obtaining much Larger diamonds, which would be "economical"....the amounts of money$ spent is not that great, so I suppose it's doable....However, I beleive that N. Novak will concentrate on the Chromites PGEs , and that said large property on the easter side, below BMK...I really feel that property is very promising, indeed...
IMCO
JD*
