Spider, KWG table McFauld’s Lake results

Vancouver — Spider Resources (SPQ-V) and joint venture partner over the counter listed KWG Resources have received assay results from the remaining four diamond drill holes completed on their jointly held Spider #3 project on the McFauld’s Lake property in northeastern Ontario.

Hole 6 was drilled below previously reported holes 1 and 2 and intersected two mineralized sections; 5.6 metres averaging 2.9% copper and 0.45% zinc and 9.65 metres averaging 5.4% zinc and 0.3% copper.

Holes 3 and 4 were drilled on a section 100 metres northeast of holes 1 and 2. Hole 3 cut 3.95 metres averaging 5.25% zinc and 0.58% copper. Hole 4 undercut hole 3 and intersected 8.7 metres averaging 2.41% zinc and 0.495% copper. This included a 6.2-metre section that averaged 3.3% zinc and 0.57% copper.

Hole 5 undercut hole 4, and will be deepened by 100 metres to test a target that was outlined by a down-hole electromagnetic survey. Hole 7, was collared 50 metes northeast of hole 5 is currently being completed.

The first six holes, or 1,314 metres, that were drilled on the property were collared on two fences 100 metres apart. Spider states that the geophysical and drill hole data indicate that the sulphide zone strikes at a 65 degree azimuth and dips 78 degrees to the northwest with a very steep plunge to the northeast.

Quantec Geophysics was contracted to perform down-hole electromagnetic survey as well as a surface electromagnetic survey to test the depth extension of the known sulphide zone. Data from this program indicates a possible 100-metre northeast extension of the zone.

Once the current drill campaign has been completed the program will be suspended for the breakup period. Additional work will continue in late May.

Since the analytical results indicate copper-zinc rich VMS-style mineralization, Spider has staked and additional 35 sq. km of ground that cover the north and south strike extensions of the favourable host rock.

Spider 3 is held jointly by Spider Resources, with a 49% interest, and KWG, with 51%. Between 1995 and 1997, the pair spent a total of $1.4 million on regional mapping and heavy-mineral sampling, in addition to a widely spaced low-level aeromagnetic survey. The geochemical samples were analyzed for kimberlite indicator minerals, as well as multi-element suites.

In April 2000, De Beers signed a confidentiality agreement with the pair and undertook a due diligence investigation that identified more than 20 priority diamond targets in the area of interest. Before signing a formal agreement nearly a year later, De Beers staked those targets and created the property base for the joint venture.

Over the summer of 2001, De Beers explored the Spider 3 properties with low-level magnetic and electromagnetic helicopter-borne surveys, while conducting regional mapping and geochemical sampling. The company mobilized a RC rig to the property in March 2002 and drilled 13 targets without intersecting any kimberlite. De Beers, which had met its earn-in obligations for a half-interest in Spider 3, then handed the discovery over to Spider and KWG in exchange for a royalty interest.

Diagem International Resource (DGM-V) is a major shareholder of KWG, with a 38.9% stake.