Attention Business/Financial Editors:
SPIDER AND KWG LAUNCH 1998 EXPLORATION PROGRAM IN BRAZIL
MONTREAL, June 11 /CNW/ - Spider Resources Inc. (''Spider'') and joint
venture partner KWG Resources Inc. (''KWG'') are pleased to announce the
start-up of their 1998 exploration program in Brazil. Spider has entered into
an agreement with Ambrex Mining Corporation to lease the latter company's
diamond sorting plant presently located in Mato Grosso State, Brazil. Spider
intends to move the plant to its Contendas site situated in Goias State in
Brazil in order to carry out a systematic surface sampling program over the
Contendas site prior to a further drilling program. Previous drilling at
Contendas identified diamondiferous lamproite dikes underlying surface
epiclastic accumulations from which diamond is currently being recovered from
material processed by local artisanal workers. To date, local artisanal
workers have recovered in excess of 5,000 carats of diamonds within the
Contendas structure.
Spider intends to complete a sixty (60) pit sampling program with each
sample representing approximately fourteen (14) cubic meters of material from
each site. All material from each pit will be processed to a concentrate at
the field site with final processing of the concentrate being completed with
an x-ray Sortex sorter at a secure site.
Following completion of the surface sampling program at the Contendas
site, Spider intends to carry out a one thousand (1 000) meter program to
further test the presence of underlying source rock.
Contemporaneously with this latter program, Spider will carry out
additional surface sampling programs over other identified targets occurring
within its claim holdings prior to drilling those targets.
Spider has recently completed private placement in the amount of
$300,000. The proceeds of these private placements will be used for the above
described programs.
Spider is a diamond exploration company active in Canada and Brazil,
currently trading on the ASE. KWG is a mining exploration company currently
trading (without quotation) on the Canadian Dealing Network under the symbol
KWGR and has 74,636,959 issued and outstanding common shares.
NO REGULATORY AUTHORITY HAS APPROVED NOR
DISAPPROVED THE CONTENT OF THIS PRESS RELEASE
-0- 06/11/98
For further information: Mary Peschka, Spider Resources, (416) 941-8709
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