KWG Testing Indicates New Ferrochrome Refining Method
TORONTO, ONTARIO--(Marketwired - Apr 2, 2014) - KWG Resources Inc. (TSX VENTURE:KWG) ("KWG") is pleased to report that further laboratory tests on the reduction of the Black Horse chromite using natural gas have been completed. The results of these tests provide substantial encouragement that the newly developed method may be utilized to convert the Black Horse chromite into a metallised chrome and iron alloy. During these tests by XPS Consulting & Testwork Services - a Glencore Company, this chromite, blended with suitable solid carbon as reductant, was reduced in the solid state at atmospheric pressure in the presence of reformed natural gas to produce the alloy.
Reactions commenced at 900°C when a suitable accelerant was used to enhance the reactions - substantially lower than is usual for chromite ores. In addition, the time required for the reductants to convert the oxide ore to alloy was substantially less than one hour - much faster than established direct reduction methods have produced.
Based on these tests only, preliminary estimates provided in a report indicate that very substantial energy savings result. The study suggests that overall direct energy costs to process one tonne of concentrate into metallized ferrochrome alloy are less than half those required for conventional technology. In addition, the process has a considerably lower greenhouse gas emission footprint and greatly reduced impact on the environment. Capital costs are estimated to be significantly lower than those for conventional processes utilizing electrical energy. As previously reported, an international patent of the method is being pursued.
About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite occurrence where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.
Arthur Barnes FSAIMM, Principal Consultant at XPS Consulting & Testwork Services - a Glencore Company together with M. J. (Moe) Lavigne, P. Geo., Vice-President of Exploration & Development for KWG, are the Qualified Persons who have reviewed and approved the contents of this release.
The Company also reports that the news release of the private placement completed on March 26, 2014, failed to disclose that finder's fees included a payment in cash of $2500 and a compensation option entitling its holder to purchase 20,000 common shares of KWG at a price of $0.05 during a three-year period.
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.
Cautionary Note Regarding Forward‐Looking Statements: This Press Release contains or refers to "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". All information, other than information regarding historical fact that addresses activities, events or developments that KWG believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this Press Release is subject to a number of risks and uncertainties that may cause the actual results of KWG to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, KWG. Should one or more of these risks and uncertainties (such as: the actual results of current exploration programs, the general risks associated with the mining industry, adverse changes in commodity prices, currency and interest rate fluctuations, increased competition and general economic and market factors, the risk that the new method of reducing chromite ore into ferrochrome by means of natural gas that is the subject of the laboratory tests and patent application does not prove efficient or economical, the scope, likelihood of grant, enforceability, infringement, freedom to operate, and commercial value relating to the patent applications to be used to support the commercialization of the gas reduction process, the grant or approval of a patent on any invention disclosed in the patent applications relating to the commercialization of the gas reduction process, and any expected benefit of commercialization relating thereto, that overall direct energy costs to process one tonne of concentrate into metallized ferrochrome alloy will not be less than half those required for conventional technology, the process will not have a considerably lower greenhouse gas emission footprint and greatly reduced impact on the environment, or that capital costs will not be significantly lower than those for conventional processes utilizing electrical energy) occur, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward‐looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward‐looking statements.
Shares issued and outstanding: 750,312,273
