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Gold/Mining/Energy : Spider Resources - SPQ.ASE -- Ignore unavailable to you. Want to Upgrade?

To: Cumbrian who wrote (382)	2/11/1999 4:46:00 PM
From: bill	Respond to of 471

Spider has diamonds. Up to 1.06 carats. Press release is out. Check Stockwatch or Carlson Online. Soem big buys at end of day. Must have got the press release ahead of me. Bought more right at the close. May be some interest tomorrow morning.

To: Cumbrian who wrote (382)	2/11/1999 4:49:00 PM
From: bill	Read Replies (1) \| Respond to of 471

KWG, Spider and Line Island release Contendas results Spider Resources Inc SPQ Shares issued 88,327,915 Feb 10 close $0.05 Thu 11 Feb 99 News Release See KWG Resources Inc (KWGR) News Release Mr. Pierre Gauthier reports KWG Resources and joint venture partners Spider Resources and Line Island Exploration have received the initial results and diamond recoveries from the first two exploration pits at the Contendas site, centrally situated on the 162,000-hectare property which straddles the border of the Minas Gerais State and Goias State of Central Brazil. Four diamonds ranging in size from 0.19 of a carat to 1.00 carat weighing a total of 1.66 carats were recovered from the first pit, while eight diamonds ranging in size from 0.30 of a carat to 1.06 carats weighing a total of 4.92 carats were recovered (to date) from the second pit. Processing of what is believed to be non-consolidated epiclastic crater material within deep (eight-metre to nine-metre vertical depth) linear depressions radiating out from a nearby lamproite intrusion continues at the second site. Two lamproite dikes (one of which contained a microdiamond) were encountered in diamond drill hole 97-04, the collar of which is approximately 12 metres away from the centre of the second exploration pit. After the removal of up to two metres of overlying clay rich soils (which contain only trace amounts of chromite plus ilmenite), a two-metre to three-metre layer of poorly sorted sand and gravel (containing minor amounts 1 per cent to 2 per chromite plus ilmenite) is encountered. Beneath this layer (which is referred to as uru gravel) a 1.5-metre thick layer of poorly sorted residual gravel is encountered which typically contains high indicator mineral content up to 10 per cent ilmenite plus chromite with minor garnet (locally referred to as high forma gravel). Thickening of this lower layer occurs in linear depressions, which tend to radiate out from a local (40-metre distant) interpreted intrusion. These are currently believed to represent residual accumulations of disaggregated associated dikes. These V-shaped features are quite deep (2.5 metres) with steep sides tapering with depth into the surrounding highly disturbed schistose bedrock, wherein the content of ilmenite and chromite dramatically increases to the 30 per cent range. Several nearby shallow excavations completed down to the bedrock suggest an overall deepening of the overlying soil plus sand and gravel toward the centre of the interpreted intrusion. The latter high forma gravel, with special preference to the residual material, is excavated and delivered to a diamond collection plant. The diamond processing plant is currently operating at an average daily throughput of 5.42 tonnes per day. The accumulated throughput at the plant to date represents several charges of different types of material from the above-described layers found in the initial two test pits. It is too early to determine the average grade of any one distinct layer sampled and only generalities can be made. It is apparent from the results to date that the following generalities apply: the overlying clay soils contain no diamonds, the uru gravels contain an occasional rare diamond, while the residual gravel contains the most diamonds. The high indicator residual material is currently being more extensively exposed in test pit No. 2 for eventual excavation and processing for diamond content. This test plant is designed to recover only those diamonds with two dimensions greater than two millimetres, and less than 16 millimetres. The results of this exploration program will be used to guide the anticipated followup program which is designed to determine the likelihood of locating in-situ primary sources of diamond in the region. As stated in earlier press releases, finding the in-situ source(s) of diamonds has been the objective of much exploration in the region, particularly considering the high number of large diamonds found in the region over the past two centuries. The Paranaiba River and its four main tributaries (St. Antonio, St. Inacio, Douradinho and Bagegem Rivers) have yielded at least 49 documented alluvial diamonds which exceed 50 carats in size, the largest being the Presidente Vargas diamond found in 1938 and weighing 726.7 carats. On Aug. 26, 1998, another large diamond was recovered by a garimpo operating a vacuum type dredge approximately six kilometres upstream from the confluence of the Rio Verde River with the Paranaiba River, which in turn is four kilometres upstream from the Contendas structure. This location lies well within the Spider Diamond Mineracao Ltda. exploration concessions, though the alluvial access is equally available to garimpeiro activity as well as mineral exploration activity. The diamond weighs an impressive 350.65 carats (the eighth largest stone recovered in Brazil in recorded history). The colour is described as G (rare white), clarity as high, little fluorescence, with no internal flaws or inclusions, although there are some minor internal stress fractures near the triangular cleaved base of the crystal. This diamond remains unsold at this time. Spider plans to commence initially geochemical exploration in order to locate kimberlite targets in the area upstream of this discovery, and has already identified through air photo interpretation and site visits several sites for the possible origin of this large alluvial diamond. In October 1998, Line Islands entered into an agreement with Spider and KWG whereby Line Islands could earn a 50 per cent interest in the North block of claims and a 10 per cent interest in the South block of claims by initially making a down payment of $150,000 to Spider and KWG. The second condition of the Line Islands agreement entails the exploration expenditure of $350,000 on the project over 24 months effectively starting the date of the receipt of the above-mentioned down payment. Upon completing this latter expenditure Line Islands will have earned its full entitlement to 10 per cent in the South block (which hosts Contendas) and 50 per cent in the North block, nevertheless Line Islands will earn 10 per cent in the North block and 2 per cent interest in the South block for every $100,000 expenditure by Line Islands. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com