GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

January 17, 2007 10:51 ET

Great Western Diamonds Corp.: Drilling Update on the 2006-07 Drilling Program at Candle Lake C29/30 Evaluation Program

SASKATOON, SASKATCHEWAN--(CCNMatthews - Jan. 17, 2007) - Great Western Diamonds Corp. (TSX VENTURE:GWD) (the "Company") is pleased to provide an update on the 2006-07 evaluation program on the C29/30 Kimberlite. Nine PQ-3 (83 mm diameter) sized core holes and one large diameter (24 inch) reverse circulation (RC) hole were completed within the southern part of the body prior to the end of the year.

A total of 2199.02 metres of core drilling produced a combined kimberlite intersection of 636.10 metres. The top of kimberlite below glacial till in these drillholes was intersected at depths ranging from 147 to 154 m. Kimberlite thicknesses ranged from 16.16 metres near the anticipated margin of the body to greater than 100 metres (Table 1) along the axis of the northwest-trending body. In addition to providing geological information, many of the coreholes will be twinned by large diameter reverse circulation drillholes facilitating minibulk sampling of the C29/30 kimberlite.



Table 1: Summary of Core Drilling Progress

---------------------------------------------------------------------------
Drillhole Top of Base of Total Total
Number Kimberlite Kimberlite Kimberlite Drillhole
(ToK) (BoK) Thickness(1) Depth
---------------------------------------------------------------------------
CL-06-001 154.54 170.70 16.16 210.01
---------------------------------------------------------------------------
CL-06-002 150.70 217.16 66.46 249.33
---------------------------------------------------------------------------
CL-06-003 147.90 251.30 103.40 276.63
---------------------------------------------------------------------------
CL-06-004 154.20 194.05 39.85 218.24
---------------------------------------------------------------------------
CL-06-005 148.91 267.22 118.31 270.66
---------------------------------------------------------------------------
CL-06-006 149.28 232.83 83.55 261.82
---------------------------------------------------------------------------
CL-06-007 148.44 252.71 104.27 255.73
---------------------------------------------------------------------------
CL-06-008 147.70 213.16 65.46 243.54
---------------------------------------------------------------------------
CL-06-009 147.36 186.00 38.64 213.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total: 636.10 2199.02
---------------------------------------------------------------------------

(1) The difference in thickness between ToK and BoK and that of Total
Kimberlite Layer is accounted for by the presence of interlayered
non-kimberlite sedimentary rock of the hosting Mannville Formation.


The drill core was described in detail by trained GWD personnel following guidelines, formats and protocols established by Minerals Services Inc. of Vancouver, B.C. In addition, the core was logged for geotechnical parameters and also will be tested for processing and metallurgical characteristics. Most of the core was longitudinally slabbed with selected representative intervals sampled for diamond recovery utilizing caustic dissolution methods by the Saskatchewan Research Council Geolanalytical Lab in Saskatoon. Other sampling of the core included collection of representative samples for petrographic, geochemical and indicator mineral analyses.

The reverse circulation drillhole was targeted within a few metres of corehole CL-06-006 and encountered 121.22 metres of continuous kimberlite (Table 2) compared to only 83.55 metres in the corehole. The difference is attributed to potential proximity of a deeper-going vent structure, or to significant variations in the topography of the crater floor. Of the 88.49 tonnes of kimberlite excavated from the nominal 609.6 mm (24 inch) diameter borehole, about 56% of the material passed over a 0.98 mm wire square mesh screen allowing collection of 49.67 tonnes for recovery of macrodiamonds. The minibulk samples will be shipped to the SRC Dense Media Separation (DMS) Plant that is currently under construction in Saskatoon. Samples will be processed during the second quarter of 2007 once the plant is commissioned.

Core drilling and large diameter minibulk sampling will continue through to the end of winter



Table 2: Summary of Large Diameter Drilling Progress To Date (Provisional)

---------------------------------------------------------------------------
---------------------------------------------------------------------------
RC Nominal Proximal Kimberlite Number
Drillhole Hole PQ Thickness of
Number Diameter Corehole (metres) Samples
(mm) (Pilot hole)
---------------------------------------------------------------------------
CL-06-LD- 609.6 CL-06-006 121.22 38
001
---------------------------------------------------------------------------
---------------------------------------------------------------------------


---------------------------------------------------------------------------
---------------------------------------------------------------------------
RC Total Total Actual
Drillhole Drill Kimberlite Sample
Number Depth Excavated Mass
(metres) (tonnes)(1) (tonnes)(2)
---------------------------------------------------------------------------
CL-06-LD- 247.77 88.45 49.67
001
---------------------------------------------------------------------------
---------------------------------------------------------------------------

(1) Excavated wet mass based on downhole calculated volumes using estimated
density values of kimberlite.
(2) Actual sample mass refers to excavated kimberlite chips passing over a
wire mesh screen with openings greater than 0.98 mm and then recovered
in minibulk bags for diamond recovery.


"While this advanced evaluation program represents a significant commitment of time and funds by the Company, the work will contribute to our objective of defining geology, geometry, and grade (both value and abundance) for the body within the framework of a Conceptual Mine Study. This, in turn, will enable us to make a timely decision on the economic potential of the body and to then implement additional steps required to formulate a National Instrument 43-101 compliant Inferred Resource for Kimberlite C29/30. This multi-year, multi-discipline, accelerated program is commensurate in scale with similar efforts in progress on other large kimberlites (the Star Kimberlite and Orion's Belt of kimberlites) by Shore Gold Inc. and Newmont Mining Corp." in the southern part of the Fort a la Corne Kimberlite Field, says Brent Jellicoe, President and CEO of GWD. "The Candle Lake C29/30 Kimberlite clearly warrants a substantial investigation of its diamond potential."

Brent C. Jellicoe is a Professional Geoscientist in the Province of Saskatchewan and is the Qualified Person responsible for the Candle Lake Diamond Project.

Great Western Diamonds Corp. is an exploration and mine development company currently focused on several diamond prospects including the 100% owned Candle Lake Diamond Project in central Saskatchewan. The Company is committed to increasing shareholder value through an aggressive, results-driven exploration and evaluation program leading to a pre-feasibility decision on the Candle Lake kimberlites by the end of 2008. While the Candle Lake Project is the most advanced project, the Company also is dedicated to creating a diverse portfolio of geographically diverse projects comprised of both grass-root to advanced diamond exploration properties.

Brent Jellicoe, P.Geo., President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents

Contact Information

  • Great Western Diamonds Corp.
    Brent Jellicoe
    President & CEO
    (306) 651-7255
    or
    Great Western Diamonds Corp.
    Doug Patrick
    (306) 651-7255
    or
    Great Western Diamonds Corp.
    226 Cardinal Crescent
    Saskatoon , SK S7L 6H8
    Email: info@gwdc.ca
    Website: www.gwdc.ca