TORONTO, ONTARIO–(Marketwired – May 13, 2014) – KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) has received from Sibley Basin Group Geological Consulting Services Ltd. an updated geological report and calculation of the resources inferred from drilling data recovered to date from the Black Horse chromite deposit. The report dated May 12, 2014 was authored by Alan Aubut, P. Geo., under the provisions of National Instrument 43-101. The resources inferred therein were additionally informed by three drill intercepts generated during the winter 2014 drilling campaign and by the intercept in hole FNCB-13-031 which was not used in the 2013 calculation due to it being located 50 metres west of the western claim boundary on the adjoining claim of Noront Resources Inc. The report provides in part:
Using the drill hole data available as of May 6, 2014, an Ordinary Kriged block model was created for the Koper Lake Project chromite deposit. The volume modelled is 0.6 km long and has a down dip extent of approximately 1.0 km with the top of the mineral zone as high as 350 metres below surface and has been traced down to a depth of approximately 1400 metres below surface. All of the resources present have a low confidence in the estimate such that they can be classified only as Inferred Resources. The following table provides the identified Inferred Resources using a cut-off of 20% Cr2O3.
Classification Tonnes (millions) %Cr 2 O 3
Inferred Resources 77.9 35.3
1. CIM Definition Standards were followed for classification of Mineral Resources.
2. The Mineral Resource estimate uses drill hole data available as of May 6, 2014.
3. The cut-off of 20% Cr2O3 is the same cut-off used for the Kemi deposit as reported by Alapieti et al. (1989) and for the nearby Big Daddy chromite deposit (Aubut, 2012).
4. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Using this 20% cut-off, there are 77.9 million tonnes at a grade of 35.3% Cr2O3 of Inferred Resources. Due to the uncertainly in the estimate and that no mineability and dilution studies have been applied to these resources, they may not all be economically recoverable.
The drill hole spacing is 100 to 300 metres with several off-azimuth holes. To date only 8 holes have tested the mineral zone on the property and most of these intersections are very steep and cut the zone at a very oblique angle. As a result there is poor confidence in the lateral continuity of the mineralization to a degree that all of the defined resources can be classified only as Inferred Resources at this time.
The deposit remains open on strike to the northeast and at depth. The increase in the size of the inferred resource is the result of thickening of the deposit with depth. The true width of the deposit ranges from approximately 100 metres at the southwestern end to about 25 metres in the northeastern half. The southwestern half of the deposit is dominantly layered chromitites while the northeastern half is dominantly massive chromitite. It is recommended that initially, further drilling be done to better define the limits and continuity of the mineralisation in the northeastern half, and secondly by infill drilling. The estimated cost of the initial program is $3.5 million.
Maps and a cross-section can be viewed on the KWG websites: www.kwgresources.com
M.J. (Moe) Lavigne, P.Geo., is the Qualified Person (QP) with respect to this project and has reviewed and approved the related information within this press release. Alan Aubut, P.Geo., author of the 43-101 report, has reviewed and approved the related information within this press release.
About KWG : KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG has also acquired interests in provisional patents including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
Shares issued and outstanding: 777,512,273
FOR FURTHER INFORMATION PLEASE CONTACT:
KWG Resources Inc.
416-642-3575 Ext. 103