QUEBEC – KWG Resources of Montreal has taken delivery of a new resource estimate for the Big Daddy chromite deposit near McFaulds Lake. The report was prepared by Sibley Basin Group based on 13,459 metres of core drilling completed in March 2012.
At a 15% cut-off, the measured resource is 29.5 million tonnes grading 29% Cr2O3, the indicated resource is 7.9 million tonnes grading 26.7% Cr2O3, and the inferred resource is 4.8 million tonnes grading 25.0% Cr2O3. These figures will be used as the project moves into the mine design phase.
The new estimate is considered more realistic than the previous figures supplied by Micon International in 2010. KWG said that the most significant difference between the two resource estimates is in the inferred category. The Micon model extrapolated the depth continuity to 250 to 300 metres beyond the drilling intercepts while the new model extrapolates the resource to only 50 metres beyond drilling.
The Big Daddy deposit is owned 30% by KWG and 74% by Cliffs Natural Resources. Highlights of the project are posted at KWGResources.com.