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In October, 2008, Spider / KWG completed a drill program entailing 4 short, HQ core holes totalling 307 metres. The project was completed under the direct auspices of James Burns, P.Eng. the newly appointed Vice President of Exploration for Spider. The purpose of the recent drilling was to explore to depth the main diamond occurrence that had been mapped and sampled over an area 300 meters by 15 meters (open to north and south) during 2005 and 2006.
These holes were designed to undercut a lamprophyre dyke that hosts numerous diamond bearing xenoliths. This dyke had been previously exposed in 2004 / 2005 by mechanical stripping over a strike length in excess of 300 m. The dyke varies in exposed width from 8 to 22 m, and dips an estimated 45 degrees towards the northeast. Diamonds had been recovered from all but 2 of the 39 surface grab or chip-channel samples collected from the length of the dyke. Diamonds had been previously determined to be preferentially located in talc-actinolite xenoliths. The most diamonds recovered were from a 30.11 kilogram sample of talc-actinolite xenoliths (sample # LAL-04-234) which yielded 1351 diamonds with two dimensions less than 0.5mm, 267 diamonds with two dimensions greater than 0.5mm and less than 1.0mm and 14 diamonds with two dimensions greater than 1.0mm.
The holes were drilled on lines spaced 100 metres apart with an initial inclination of -45 degrees towards the southwest to cut the dyke at approximately 40 metres below surface. Samples were normally 1.0m in length; each sample weighed approximately 10 kilograms.
Details of Drill Holes
Hole #1 was drilled at -45 degrees SW, and intersected the dyke between 61.2 and 68.4 metres. Xenolith content varied from 1 to 10 xenoliths per sample. The maximum dimension of the xenoliths (as cut in the core) was less than 5 cm. however one xenolith in sample #106 measured 15 cm.
Hole #2, also drilled at -45 degrees SW, cut a 5.25 metre interval of xenolith bearing dyke between 64.1 and 69.35m. Xenolith content varied from 3 to 9 per sample, and the maximum dimension of xenoliths was 6 cm.
Hole #3, drilled at -45 degrees SW, intersected two lamprophyre dykes - the main dyke from 37.95 to 47.60m and the second 69.4 to 72.25m. Xenolith content varied from 1 to 13 per sample, and xenolith size, although generally less than 6cm, varied up to 15 cm.
Hole #4, drilled at -75 degrees SW, undercut Hole #3. This hole also cut two dykes - an upper from 2.44 to 8.00m and the main dyke from 35.9 to 49.8m. Xenolith content varied from 0 to 17 per sample. The maximum xenolith size cut was 15 cm.
All 42 samples collected were of whole core, and these have been shipped to SGS Lakefield for diamond recovery from representative 8 kg samples.
Quality Assurance / Quality Control
All samples from the drill program were selected by James Burns P.Eng. and placed in individual bags and then sealed in plastic pails with an appropriate lock seal attached to each pail. The pails were then shipped via bonded carrier to SGS Lakefield's facility mineral processing facility in Lakefield Ontario. The samples will undergo caustic dissolution analysis for micro diamond content and will be reported upon after completion of the test work.
Details of Joint Venture with KWG
In May, 2006 Spider and KWG had collectively spent $2,077,353 on this project. Spider elected to advance this project and was appointed manager. Under the terms of the Wawa joint venture with KWG, the non-manager will not participate in any program until the manager has spent an amount equal to its 50% interest (for Wawa this equates to 50% of $2,077,353 or $1,038,677) thereby increasing to 66.67% its interest in the project. When the non-contributing party's interest has thus been reduced to 33.33% it may elect to contribute to future programs to maintain its interest, or be diluted down to a 10% working interest. At 10%, the interest will be automatically converted into a 1% net proceeds from production royalty in the case of diamonds, or a 1% net smelter royalty in the case of precious metals (for primary precious metal deposits), or a 0.5% net smelter royalty in the case of base metals.
About Spider
This press release has been prepared by management of Spider Resources Inc., which is the operator of the joint venture, and has been approved for dissemination by Neil Novak P.Geo, President of Spider as well as James Burns P.Eng. Vice President Exploration for Spider, both of whom are Qualified Person(s) as such term as defined under National Instrument 43-101. Both have reviewed and verified the technical information contained in this press release and have approved the contents of this press release. Spider Resources Inc. is a tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are currently 310,311,767 shares issued in Spider.
On behalf of the board of directors,
Neil Novak, President and CEO
This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.
Contacts: Spider Resources Inc. Neil Novak President and CEO (416) 815-8666 Website: www.spiderresources.com
SOURCE: Spider Resources Inc.
http://www.spiderresources.com
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