Attention Business/Financial Editors:
KWG UPDATE ON EXPLORATION IN BRAZIL
ME/TSE: KWG
CDN: KWGR
MONTREAL, August 4 /CNW/ - KWG Resources Inc. (''KWG'') is pleased to
announce that the Contendas structure situated in Goias State - Brazil is
presently undergoing a surface exploration program focused on testing
epiclastic sediment overlying lamproite identified during the 1997 drilling
program. Garimpo activity carried out in the epiclastics during 1995-1996 and
early 1998 was successful in recovering diamond, including 5000 carats in the
95-96 season with the largest stone reportedly being 30 carats in size.
In preparation for this program, a processing plant has been mobilized to
the site; the plant reached the site during the past weekend, is presently
being erected and should be operational by August 6th. The planned program
will consist of 50 pits having dimensions of 3 meter x 3 meter x 3 meter, and
spaced 100 meters apart. Each pit will produce approximately 10 tonnes of
material for processing. The excavated material will be processed on site to
a jig concentrate, which will be further processed through an x-ray sortex to
diamond present.
The product from each pit will take approximately 2 days to process. The
diamond distribution in the epiclastic blanket, determined by the pitting
program, will provide the basis for further surface processing activities on
the Contendas site. The present program will take approximately two months to
complete.
Following the systematic sampling of the overlying epiclastics which
should permit a reliable positioning of the underlying primary source
intrusives, a drilling program will be carried out.
The Contendas property is part of the Alto Paranaiba concessions,
collectively held by KWG (75%) and joint venture partner, Spider Resources
Inc. (25%). Spider is presently increasing its interest to 50% by completing
the previously agreed upon aggregate expenditure of US$1.8 million.
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 OR DISAPPROVED THE CONTENT OF THIS
PRESS RELEASE.
-0- 08/04/98
For further information: Mary Peschka, (416) 941-8709
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