KWG Resources Inc ("KWG") is an exploration stage company that is participating in the discovery, delineation and development of chromite deposits in the James Bay Lowlands of Northern Ontario. These deposits are globally significant source of chromite which may be refined into ferrochrome, a principal ingredient in the manufacture of stainless steel. KWG has been a pioneer in exploring the James Bay lowlands since 1993 and discovered diamond bearing kimberlite pipes near Attawapiskat and 5 more near the Ring of Fire area in 1994. This led to the accidental discovery of the McFaulds Lake copper-zinc volcanogenic massive sulphide deposits in 2002, the discovery which precipitated a staking rush that defined the "Ring of Fire".
|October 23, 2013
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|September 22, 2013
CTV Northern Ontario: Rail Option
Canada Chrome Corporation
Canada Chrome Corporation (“CCC”) was created as a wholly-owned subsidiary of KWG. CCC has staked mining claims covering a unique linear sand ridge that stands proud of the vast wetlands. This sand ridge is well suited for a railroad embankment which could be created for transporting materials into the discovery area as well as transporting the mined ores out. Krech Ojard & Associates have been engaged to undertake pre-feasibility engineering of the embankment alignment and water crossings. A geotechnical study was carried out by Golder Associates who collected soil samples from 744 borings using hollow stem auger drills. The sampling along the 330 kilometre study corridor was completed in May 2010. The pre-feasibility level engineering document will enable informed consultations with affected First Nations and all other local and regulatory constituencies, on the feasibility of constructing a railroad.
Since core drilling first intersected chromite on the "Freewest Option" property in 2006, a total of 97 holes were directed to delineate the Big Daddy chromite deposit to a depth of 488 metres. Subsequent to the completion of the winter drilling 2012 program, Sibley Basin Group was engaged to estimate the chromite resource. The results, first reported in a press release on July 9th, 2012, are contained in a 43-101 compliant report filed on SEDAR on August 13th, 2012, (National Instrument 43-101 Technical Report, Big Daddy chromite deposit, McFaulds Lake Area, Ontario, Canada. Porcupine Mining Division, NTS 43D16. Mineral Resource Estimation, Technical Report).
The updated 43-101 compliant resource estimate by the Sibley Basin Group was filed on SEDAR on August 13, 2012. At a 20% cutoff, the measured resource is 29.1 MT, grading 31.7% Cr2O3. The much higher grades of the Big Daddy compare favourably with those deposits whose ore is shipped directly to foundries with minimal processing. This potential is being investigated.
KWG has earned a 30% interest in the Big Daddy chromite deposit. A joint venture will be formed and its operator will be selected by the holders of a majority of the JV interests. The Freewest non-operating interest in the Big Daddy deposit as well as its adjacent Black Thor deposit are now the property of Cliffs Natural Resources Inc. after it recently acquired all of the outstanding shares of Freewest and Spider.
The Company is presently exploring the Black Horse chromite discovery made by Fancamp Exploration Ltd. in 2010 on its Koper Lake claim block. It has the option to earn up to an 80% joint venture interest in the Black Horse, and any new chromite discoveries made on these claims. The discovery potential on these claims is perceived as very high as they cover a 4 kilometer gap within the trend of known chromite deposits, the Big Daddy, and Black Thor deposits to the northeast, and Blackbird deposit to the southwest. The first drilling program, designed to confirm that the Black Horse is a significant chromite deposit, was completed in May 2013.
The company has received from Sibley Basin Group Geological Consulting Services Ltd. its geological report and calculation of the resources inferred from drilling data recovered to date from the Black Horse chromite deposit. The report dated August 29, 2013 was authored by Alan Aubut, P. Geo., under the provisions of National Instrument 43-10. Using this 20% cut-off, there are 46.5 million tonnes at a grade of 38.8% Cr2O3 of Inferred Resources. No mineability and dilution studies have been applied to these resources and therefore they may not all be economically recoverable.
Significant recent developments include: