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Gold/Mining/Energy : KWG Resources (KWG - T) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Robitaille who wrote (186)	11/23/1999 4:26:00 PM
From: Claude Robitaille	Read Replies (1) \| Respond to of 197

Line, KWG and Spider exploration progress in Brazil JV KWG Resources Inc KWGR Shares issued 74,636,959 Jun 22 close $0.08 Tue 23 Nov 99 News Release See Line Islands Exploration Inc (LIN) News Release Mr. Scott Hogg reports Line Islands and its partners, KWG and Spider Resources, have announced the discovery of more kimberlite pipes on the Alto Paranaiba property in Brazil. The diamond processing plant is presently being upgraded with a pan concentrator to enable testing of the MK-1 pipe. The discovery of a kimberlite pipe, now designated MK-1, was announced in the news release of Oct. 19, 1999. The site of this kimberlite, at the headwaters of a small stream, from which the recovery of a 200-carat stone, as recorded by Barbosa O., 1991, is very favourable. A ground magnetic survey has defined a strike length of about 250 metres. Four diamond drill holes have intersected kimberlite over a length ranging from 30 to 36 metres. Two of the holes were drilled vertically and encountered weathered kimberlite at four metres and five metres. A third vertical hole returned chlorite schist from surface to a depth of 51.6 metres, then continued in kimberlite to a depth of 82 metres before re-entering schist. The fourth hole, inclined at 45 degrees, returned 23 metres of schist, followed by 55 metres of kimberlite prior to ending in schist. Preliminary analysis of the geophysics and drill results indicate a steeply dipping, but non-vertical, body that is 20 metres to 30 metres in width and 250 metres in length. There is an indication that the pipe may have had two intrusive phases. A cross section of the MK-1 pipe is presently being stripped by bulldozer and a bulk sample of about 100 tons wil be excavated for treatment at the nearby diamond processing plant. In preparation, a pan separator is being installed at the plant to improve the efficiency of extracting the concentrates for the Sortex diamond recovery system. The continuing exploration program has had an exceptionally productive month, identifying three or possibly four new kimberlites at sites designated MK-2, MK-3, MK-4 and MK-5. At MK-3, 4 and 5 field work is still in progress. So far, two pipes, MK-3 and MK-4, have been delineated by the ground magnetic survey and identified as kimberlite by auger drilling. An interpretation of the magnetic data indicates dimensions of the pipes to be approximately 50 metres by 250 metres and 100 metres by 200 metres. Both are within a few metres of surface. A diamond drill core sample for petrographic analysis will be obtained from each pipe. Ground mapping at this site is not yet complete; however, auger drilling results suggest that a third pipe, MK-5, will be confirmed. At MK-2, the ground magnetic survey and interpretation identified a linear anomaly with the same magnetic characteristics as MK-1 and a strike length of 300 metres. Auger drill results have identified abundant indicator minerals and diamond drill testing is planned. These new discoveries are of special exploration interest for several reasons. First, they lie within the local watershed of a section of the Paranaiba River that has historically produced many large diamonds. Second, they are near surface and close to the operating diamond processing plant. This provides a unique opportunity to extract a bulk sample and make an early preliminary assessment of their macrodiamond potential. The management of Line Islands has decided to take advantage of this opportunity and redirect the diamond plant capacity to these new discoveries. It is anticipated that 100 tons from MK-1 will be processed before the end of the year. In May, 1999, Line Islands Exploration entered a joint venture agreement with Spider Resources and KWG Resources on the Alto Paranaiba project in the Minas Gerais and Goias states, Brazil. Under the agreement, Line Islands will finance and manage the diamond exploration program and earn up to a 40-per-cent interest. Details of the agreement have been issued in an earlier news release. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com