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, including 1,024 hectares covered by four unpatented mining claims approximately 280km north of Nakina, Ontario, which contains the Black Horse chromite deposit (the “Koper Lake Project”) and 1,241 hectares covered by seven unpatented mining claims approximately 280km north of Nakina, Ontario, which contains the Big Daddy chromite deposit (the “Big Daddy Project”).
The Corporation has the right to acquire: (i) up to an 80% interest in respect of chromite contained in the Koper Lake Project; and (ii) up to a 20% interest in respect of the non-chromite minerals contained in the Koper Lake Project. The Corporation also has a 30% interest in the Big Daddy Project.
Through the Corporation’s subsidiary, Canada Chrome Corporation (“CCC”), KWG has also staked mining claims in Northern Ontario with a view to the development and construction of a proposed railway from Nakina, Ontario to the Koper Lake Project and the Big Daddy Project as well as exploring for, delineating and developing aggregate and other minerals. See “Description of Business” for more information.
THE KOPER LAKE PROJECT
The Koper Lake Project property is located in North-western Ontario, approximately 280 kilometres north of the town of Nakina. It consists of about 1,024 hectares covered by 4 unpatented mining claims. KWG Resources Inc. has an option to earn up to 80% in any chromium production and 20% in other minerals, and Bold Ventures Inc. in turn have an option to earn a 100% interest in the property from Fancamp Exploration Limited, with Bold being the operator in the initial option period.
The area is underlain by Archean volcanics and ultramafic rocks intruded by a granodiorite complex. The Koper Lake Project property is underlain by a multi-phase layered ultramafic intrusion consisting of peridotite, olivine cumulates including dunite, chromitite, pyroxenite and gabbro that have been transected by a major deformation zone. The chromitite consists of fine grained disseminated to massive accumulations of chromite grains typically in a peridotite to olivine intercumulate matrix.
Exploration to date has consisted of geophysics followed by diamond drilling designed to look for nickelcopper mineralisation and to trace the chromitite. The chromitite has been traced approximately 0.6 kilometres along strike and 1 kilometre down dip. The current objective is to define a chromite deposit that can be economically extracted using underground mining techniques.
THE BIG DADDY PROJECT
The property is located in North-western Ontario, approximately 280 kilometres north of the town of Nakina. It consists of approximately 1,241 hectares covered by 7 unpatented mining claims held in a joint venture between Canada Chrome Mining Corporation (30%), Cliffs Chromite Far North Inc. (30%) and Cliffs Chromite Ontario Inc. (40%). Canada Chrome Mining Corporation is a 100% owned subsidiary of KWG Resources Inc. (KWG). Cliffs Chromite Far North Inc. and Cliffs Chromite Ontario Inc. are both 100% owned subsidiaries of Cliffs Natural Resources Inc.
The area is underlain by Archean volcanics and ultramafic rocks intruded by a Granodiorite complex. The Big Daddy chromite deposit is hosted by a multi-phase layered ultramafic intrusion consisting of peridotite, olivine cumulates including dunite, chromite, pyroxenite and gabbro. The chromite mineralisation consists of fine grained disseminated to massive accumulations of chromite grains typically in a peridotite to olivine cumulate matrix. There are multiple layers of significant chromite accumulation. Exploration to date has consisted of geophysics followed by diamond drilling designed to trace the Big Daddy chromite zone approximately 1.2 kilometres along strike and approximately 490m down dip. The ultimate objective is to define a chromite deposit that can be economically extracted using a combination of open pit and underground mining techniques.
The Railway Claims
CCC has staked the Railway Claims which cover a unique linear sand ridge, containing consolidated and non-consolidated aggregates and is anticipated to be suited for the construction of a railroad embankment to transport materials, including any mined materials, in and/or out of the Ring of Fire area.
As part of its initiative to develop and identify opportunities to improve the conventional technology related to the conversion of chromite ores into metallised chrome and iron alloys, the Corporation has acquired an ownership interest in the Chromium IP.