Jun. 3, 2010 (TheNewswire.ca) --
TORONTO, ONTARIO ( June 3, 2010) - Spider Resources Inc. (TSXV:SPQ) ("Spider" or the "Company")(TSX V: SPQ) reports that at the Special and Annual General Meeting of the company held on May 19, 2010, Mr Hubert Marleau was elected to the Board of Directors, replacing outgoing director Mr. Gregory Roberts. Management of the Company would like to thank Mr. Roberts for his service over the past four years as director and we wish him well in his future endeavours.
Mr. Marleau brings many years of experience in the junior resource sector focusing on equity markets and financing. Mr. Marleau lives in Montreal, Quebec. His principal occupation is and has been for the past 12 years as President and CEO of Palos Capital Corporation a Licensed Financial Advisor & Portfolio Manager of several pooled fund L.P.'s and Mutual Fund Trusts. Prior to this, Mr. Marleau was Chairman and CEO of Marleau Lemire Inc. (between 1989 and 1998) a full broker/dealer headquartered in Montreal, and forrom1980 and 1988 Mr. Marleau was Senior Executive Vice President and director of Levesque Beaubien Inc., working in Institutional Equity Sales & Trading, Capital Markets Activities, Futures & Options Trading Department, Bond & Money Market Desk, & Institutional Research. Prior to this Mr. Marleau was Senior Vice President and Director of Nesbitt Thomson Inc. involved in Equity Research and Analysis. Mr. Marleau has been a director of a number of TSX and TSX-V listed companies and is a current Board Member on the following Publicly Traded Companies in Canada: Canalaska International, Freegold Ventures, Ltd. (OOTC:FGOVF) (TSX:ITF) , Global (GMPC) Holdings, Inc., Gobimin, Mitec Telecom, Inc. (TSX:MTM) , Niocan, Inc. (TSX:NIO) , Stanstead Capital, Inc., Uni-Select, Inc. (TSX:UNS) , and Warnex Inc. (TSX:WNX)
The Board of Directors welcomes Mr Marleau whose depth and breadth of experience will provide valued guidance to company Spider for the forthcoming period of exciting developments ahead.
In other Special and Annual General Meeting matters, Spider announces that the proposal to seeking shareholder approval to consolidate all of the Company's issued and outstanding common share capitals was defeated by a narrow margin. The minimum threshold of sixty six and two thirds (66.67%) of the votes cast in favour for this resolution at the Meeting was not reached, and the resolution was regrettably defeated. Other agenda items also went to vote by ballot at the Meeting, all of which were carried by a majority of votes cast by ballot at the meeting.
In view of the stream of excellent drill results received throughout the winter and spring, culminating in the recent NI 43-101 indicated and inferred resource (see below); various financial advisors to the company suggested that the number of the outstanding Common Shares and the prices which they trade at, no longer reflect the asset-value of the Company. Meanwhile, many larger institutional investors have shown much interest in the new fundamentals of the company (especially in view of the Big Daddy resource estimate), however they are typically prohibited from investing in a company whose shares trade in the sub one-dollar range. Rather than be viewed as another junior lacking credibility or viability, the Board of Directors and Management needed the flexibility to be able to re-posture the Company for the future as it continues to evaluate this "once in a lifetime" asset. Another purpose of the proposed Consolidation was to allow the board the latitude to effect a consolidation if they thought it be in the best interests of the Company and avoid the necessity, cost and delays of holding a special shareholders meeting to effect a consolidation if circumstances warranted it prior to December 31, 2010 in the event that the Company needed to act quickly to any events.
Following the annual meeting, the board of directors met and confirmed the officers of the company, who remain unchanged from the previous year.
THE BIG DADDY CHROME DEPOSIT
The Big Daddy chrome deposit is the asset that is so highly desired by Cliffs. Cliffs is currently the Optionor of the property that hosts Big Daddy, Spider and KWG Resources Inc. (TSXV:KWG) ("KWG") are the Optionees.
The Optionees, by fulfilling certain option earn-in spending requirements in a timely manner can earn up to 30% each (or 60% in aggregate), leaving Cliffs with 40% interest (formerly the Freewest interest).
On May 3, 2010 the Company announced the results of an initial resource estimate as prepared by Micon International Limited, meeting the guidelines set out in National Instrument 43-101 standards for reporting.
The bulk of the chromite mineralization was found to be confined to what has been described as the "massive chromite domain" while the remaining chromite falls into the "disseminated", "intercalated" and "semi-massive" domains. The latter three not meet the grade sensitivity cut-offs currently considered to be economically significant. The sectional interpretation of the continuity of the various chromite domains cleary show that the Big Daddy deposit comprises two main segments aligned in a northeast trending mineralized envelope designated BD1 and BD2.
The international demand for chromite is mainly for a metallurgical grade product with an approximate chromite grade of 40% Cr2O3 and with a Cr:Fe ratio of generally around or greater than 2:1. The size of the Big Daddy deposit has reached this international demand threshold. Metallurgical grades of this nature command much higher prices. Worldwide, lower grade deposits are being exploited and profitably mined and processed into metallurgical grade products by energy intensive electrolitic reduction. The Big Daddy deposit may not need the capital intensive processing steps at the grades which have been encountered.
Micon, in their April 30, 2010 report proposed two scenarios in their review:
Scenario 1 focused on high grade massive (lumpy) material with little or no beneficiation required, this being a much more sought after type of deposit. Micon refers to this in the report as the Massive Chromite domain. In the Massive Chromite Domain, BD1 and BD2 are estimated to contain 23.2 million tonnes averaging 40.66% Cr2O3 in the indicated category, plus an additional 16.3 million tonnes averaging 39.09% Cr2O3. This estimate includes minimal waste and was tightly constrained to the massive Cr2O3 domain. Little beneficiation would be needed for this scenario. The standout feature for scenario one, the massive chromite domain is the exceptional grade as well as a Cr:Fe ratio of 2.
Scenario 2 defined a broader zone of chromite mineralization that may be exploitable by open pit mining, but requiring beneficiation to upgrade to meet certain market demands. Using 15% Cr2O3 cut-off, BD1 and BD2 are estimated to contain 26.4 million tonnes averaging 39.37% Cr2O3 in the indicated category, plus an additional 20.5 million tonnes averaging 37.47% Cr2O3. This estimate includes internal waste within the 15% Cr2O3 envelope, meaning that some waste (material of lesser grade, not considered to be of significant grade) is included in the resource estimate, resulting in an increase in tonnage reflected in a reduction in average grade. Beneficiation will likely be required for this scenario.
The geological observations and interpretation, statistical analysis and spatial analysis of the data as reported by Micon, demonstrates a high level of continuity in the mineralization both in the lateral and vertical sense. The broad zone of continuity is clearly defined to justify the bulk of the deposit being categorized as Indicated. That portion of the deposit below the -220 m and -160 m elevations (for BD1 and BD2 respectively), as well as all of the satellite bodies whose geological continuity is somewhat questionable, have been categorized as Inferred.
The bulk of the Inferred category of the major components of the Big Daddy deposit remains to be drill tested. The interpretation is based on the large thicknesses of the massive chromite encountered in the line of the deepest holes suggesting that at between 350 m and 400 m depth, the deposit does not appear to be narrowing at depth, and is also consistent with a Magnetic 3D inversion which suggests that the ultramafic rocks hosting the chromite mineralization extend to a depth of +/- 1,700 metres. Big Daddy has only been drilled to a maximum depth of 375 metres, extensions to greater depths for BD1 and BD2 need to be confirmed by additional drill testing. A certain component of the go forward exploration plan for Big Daddy is designed to continue probing to depth. This program is currently being planned.
It was further reported by Micon, that in order to upgrade the resource from indicated and inferred to the "measured category", a few strategically positioned drill holes will be required. This program is currently also being considered as part of the go forward exploration plan, as a "measured resource" confidence level category is required as a logical step in pre-feasibility and scoping studies, all of which advance Big Daddy closer to feasibility type studies.
About Spider Resources Inc.
Spider Resources Inc. is the "Spark that set off the Ring of Fire". Spider, the Pioneer Explorer in the James Bay Region of Northern Ontario since 1993 was responsible for the discovery of eight kimberlites (1994-95), ten VMS occurrences, including two VMS deposits (2002-2006), one chromite deposit (2006). Regional geophysical surveying and other exploration efforts as initially conducted by Spider formed the exploration data-set that lead to the first discovery of Chromite in the area in February '06, in a peridotite intrusion, and about a year later lead to the eventual discovery of additional chromite deposits and related Magmatic Massive Sulphide Nickel Deposit by others.
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 473,469,598 shares issued in Spider. For further information concerning Spider Resources Inc., please contact:
NEIL D. NOVAK, P.Geo.
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 Information" within the meaning of the Securities Act (Ontario). Other than statements of historical fact, all information is "Forward-Looking Information" 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 this "Forward-Looking Information". All dollar amounts are Canadian dollars unless otherwise noted.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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