CHROMITE EXPLORATION: KWG offers update on Bid Daddy

ONTARIO - KWG Resources of Montreal has had a busy field season at the Big Daddy chromite deposit in the James Bay Lowlands. It conducted both metallurgical and definition drilling.

The metallurgical drilling program included 1,909 metres of HQ drilling in nine holes during October 2011. A 4,600-kg massive chromite bulk sample was removed from core boxes and packaged for transport to Xstrata Process Support (XPS) in Falconbridge, ON. The furnace runs are scheduled for February.

The resource delineation program was to consist of 12,000 metres of NQ drilling in 38 holes. Drilling started immediately following the completion of the metallurgical sampling as the rigs became available and was carried out continuously with two rigs until winter shutdown. In that time 23 of the 38 holes were completed for a total of 7,754 metres. Drilling has resumed and completion is anticipated in the third week of February.

The Big Daddy property contains 23.2 million tonnes of indicated resources that average 40.66% Cr₂O₃. The inferred resource is 16.3 million tonnes grading 39.09% Cr₂O₃. This high grade massive material would produce a lumpy product comparable to South African products with little or no beneficiation, according to the 43-101 report written in 2010.

More information is available at KWGResources.com.