Spider and KWG discover kimberlite pipe on Alto Paranaiba
KWG Resources Inc KWGR
Shares issued 74,636,959 Jun 22 close $0.08
Wed 20 Oct 99 News Release
See Spider Resources Inc (SPQ) News Release
Mr. Norm Brewster reports
Spider Resources and its partners, Line Islands Exploration and KWG
Resources, have discovered a kimberlite pipe on the Alto Paranaiba property
in Brazil. The pipe was first indicated by an auger drill program and
subsequently confirmed by diamond drilling. The site of the discovery is
very favourably located at the headwaters of a small stream, from which the
recovery of a 200-carat stone, has been recorded (Barbosa 0.1991 Diamente
no Brasil, CPRM).
The auger drill exploration program encountered massive reddish brown
saprolite, field identified as phlogopite kimberlite. The samples were
panned and the opaque minerals within the concentrate were about 90 per
cent picroilmenite. A diamond drill hole confirmed weathered phlogopite
kimberlite to a depth of 36 metres. The hole terminated in schist at a
total length of 49 metres. A second hole on the kimberlite was sited 50
metres west of the first and intersected the same phlogopite kimberlite to
a depth of 40 metres.
The auger exploration program continues at other selected sites around the
property and a diamond plant, capable of processing 10 tons per hour using
an x-ray Sortex diamond recovery system, is beginning operation. Initially
the plant will process material from the Contendas site where an old
garimpo pit had produced 5,000 carats (ACA How report, September 1998). A
sequence of epiclastic volcanic sediments, similar to those found in
craters such as Mwadui and Orapa have been identified within and around the
old workings. At the outset of the current exploration program, three
diamond drill holes were completed at this site. The first hole was
directed to test the bedrock beneath a sector of the main garimpo pit, the
second probed beneath a smaller pit to the north and the third tested a
morphologic feature several hundred metres to the northwest.
Initial processing at the Contendas site will focus upon the coarser
material, believed to be most favourable for larger stones. Material from
different locations around the Contendas site, as well as from the new
kimberlite will be processed with the intent of assessing and mapping the
potential diamond grade.
The Alto Paranaiba property covers 160,000 hectares and encloses a section
of the Paranaiba River that has produced many large diamonds of 100 to
300-carat (ACA How report, September 1998) size, for more than 200 years. A
source of the alluvial diamonds has not yet been identified, however, there
are strong indications that a source may occur on the property. Over 80
photogeologic structures, that may be associated with pipes, have been
identified. Stream sediment sampling has indicated that at least 14 of
these sites have indicator minerals of a kimberlite or a lamproite source.
Line Islands is the project operator and Line Islands has an option to earn
up to a 40-per-cent interest in the property from Spider and KWG. |
