Spider and KWG add to Ring of Fire buzz

Trading was heavy on Spider Resources (SPQ-V ) and KWG Resources (KWG-V) shares after results from the Freewest property continued to draw attention to what has been dubbed the “Ring of Fire” in Northern Ontario.

Spider says the most recent drill program hit massive chromitite layers in a peridotite sill with a highlight return of 30.73% chrome oxide over 14.4 metres.

Other layers within the sill returned combined platinum, palladium and gold intersects of 2.183 grams over 9 metres. Nickel was also found — grading 0.21% over 3.6 metres.

Previous intersects announced in early May returned 35.6% chrome oxide over 7.5 metres roughly 100 metres from the highlight hole in this program.

In Toronto on June 11, Spider shares were up 25% or 2 to 8 on 7.4 million shares; KWG was up 22% or 1 on to 6 on 10.4 million shares while Freewest shares fell a penny to 29 on roughly 767,000 shares traded.

The project is jointly held by Spider, KWG and Freewest Resources (FWR-V) with Spider and KWG able to take a 50% interest from Freewest by spending $3 million on exploration over four years.

Their stake can climb to 60% by finishing a feasibility study and then to 65% by arranging financing to put the project into production.

The property sits roughly 15-km southwest of the McFaulds Lake volcanogenic massive sulphide occurrences and roughly 3.6-km northeast of Noront Resources‘ (NOT-V) Eagle One discovery.

The company hypothesizes the sill and chromitite layers thicken to depth and the northeast. It says future drilling will sink deeper than the roughly 400 metres reached in the most recent drill program.

Ground geophysical surveying is expected to be finished before the end of June.

The most recent drilling program began in March and carried through until mid-May.

The 7 hole 2,184 metre program targeted chrome-nickel-platinum group metal bearing peridotite discovered by Spider and KWG in 2006.

To date, Chromitite layers have been hit in four holes.

Spider says the recent intersects mean it can start 3-D modeling. It says litho-geochemical analysis will be done with the aim of establishing continuity between the chromitite layers.

The company plans to do infill drilling in the near future and will tighten spacing to 50 metres from 100 metres.