GGL Diamond Corp.
TSX VENTURE : GGL

GGL Diamond Corp.

April 04, 2007 09:00 ET

GGL Discovers Nickel While Exploring for Diamonds and Now Holds 80 km of Prospective Nickel Belt

Exploration targets are based on Nickel in a rock sample, Nickel in soil samples, detailed airborne geophysical surveys with magnetic and EM anomalies and coincident gossans

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) - The Company (GGL Diamond Corp.) (TSX VENTURE:GGL) ("GGL") is pleased to report that in the course of its diamond exploration activities in the Winter Lake area in the Northwest Territories, it has made a discovery of nickel mineralization.

A number of factors, detailed below, point to this discovery as possibly being the first new nickel area discovered in Canada since Voisey's Bay. The Company has worked to confirm its initial geological assessment of the significance of this discovery and to stake additional claims to cover the most prospective portions of the belt. The staking has now been completed. The Company's claims now cover an area about 80 km in length and up to 20 km in width.

The discovery lies within an extensive belt of rocks previously identified by a mapping project funded by the Geological Survey of Canada and reported as having the potential for hosting magmatic nickel mineralization.

The belt, named the Winter Lake Supracrustal Belt, includes large volumes of mafic and ultramafic rocks, dated as being 2.7 billion years old and including tholeiitic basalts, komatiites, serpentinized peridotite, and gabbro intrusions. The belt features deep-penetrating faults, sulphur-bearing sediments in the form of black shales and massive sulphides. The various rock units within the belt are strongly deformed and have similarities to lithologic sequences that are known to host world-class nickel deposits.

Included within the belt of rocks underlying the property area are komatiites, which are very magnesium-rich volcanic rocks generally found only in early Precambrian sequences.

A remarkable global outpouring of komatiites occurred around 2.7 billion years ago, and many of these host a significant proportion of the world's sulphide nickel resources. Examples include the Thompson Nickel Belt (TNB) of Manitoba, the Raglan belt in northernmost Quebec, the Kambalda deposit in Western Australia, and Hunter's Road in Zimbabwe. All feature similar settings within unique geological belts developed along extensive fault or suture zones that transect the early Precambrian cratons within which they occur.

The presence of nickel in sulphide and associated elements, coupled with the chemistry of the mafic and ultramafic rocks in this newly defined belt are indicative of their potential to host significant nickel deposits.

Illustrating the potential of these belts, INCO first began exploring the Thompson Nickel Belt in 1946 and has continued to make discoveries to this day. It is significant that there are five deposits over a 70 km stretch at Thompson and 10 known deposits over a strike length of 55 km in the Raglan belt.

In view of the potential for multiple deposits and the occurrence of sulphide nickel, confirmed in this case by an assay of a grab sample and the discovery of anomalous nickel values in soils over a strike length of over 30 km, the opportunity has been afforded your Company to acquire by staking as much of the newly defined belt as has been demonstrated to be prospective for sulphide nickel mineralization.

Following the recognition of the nickel potential of the new belt, an intensive search of available literature of the world's nickel deposits and the chemical signatures of both the host rocks, mineralization and exploration techniques used to discover these deposits was undertaken.

Much of the information for the Slave Craton has only become available in the last few years and provided the evidence of the potential of this new area. This information was in the form of reports describing the geological and metallogenic evolution of the Craton and a new bedrock compilation map.

Historically, most of the major known nickel sulphide camps worldwide were discovered by way of regional prospecting and sampling programs. Examples include Sudbury, Nori'lsk, Kambalda, Thompson, Raglan and most recently, Voisey's Bay. Modern day techniques in the search for nickel deposits include a combination of geological, geophysical and geochemical exploration methods, used to detect physical or chemical haloes that are much larger than the orebodies themselves.

In Ni sulphide exploration, a processed magnetic map can define the contacts of the mafic-ultramafic host rock as well as linear features that may be indicative of sulphide mineralization. Such interpreted near-surface magnetic linears usually have a corresponding electromagnetic (EM) response. Accordingly, electromagnetic and magnetic geophysical surveys are commonly used to define drill targets for nickel mineralization.

Geophysics is also a prime exploration method for kimberlites and during our diamond exploration on the Slave Craton, we contracted Fugro Airborne Surveys, the world's largest geophysical company, to conduct extensive and detailed helicopter airborne magnetic and EM surveys on our behalf. The survey was completed at a line spacing of 60 metres, providing exceptional detail for interpretation and covering a strike length of 33 km of what we now recognize as the potential nickel belt. The geophysical data obtained by Fugro was then sent to Condor Consulting Inc., a Denver-based geophysical consulting group whose clients include some of the largest mining companies with world-wide projects. The data was enhanced by the use of proprietary software and the interpretation initially directed to find kimberlites has now been reassessed to outline and define potential target areas for nickel mineralization.

Attention was first directed to the area of the nickel in sulphides found in a grab sample collected from the edge of a 60 metres by 20 metres outcrop of serpentinite, an altered ultramafic rock. The sample lies within a 600 metres by 100 metres, northeast trending, linear magnetic high which is coincident with an EM conductive zone. This conductive zone is one of three within an approx. 2 km long linear magnetic high.

The rock was identified and the sample collected by John Knight, P. Geol., Consulting Geologist and Ken Frew, a geological technician. At the time, these individuals were operating under a tight schedule prior to freeze up and were checking for the presence of kimberlites. This sample and other non-diamond specific samples, were marked for later follow up and if warranted, for assay. This sample was subsequently assayed and the assay results for this particular sample were noted. The ICP-ES (total nickel) returned 0.447% Ni, 0.586% Cr2O3 and 0.73% total sulphur, the ICP-MS (nickel sulphide content) returned 0.41% Ni, 178.1 ppm Cu and 214.9 ppm Co. A 30 gm sample, tested by fire geochem & ICP-MS returned 71 ppb Pt (platinum) and 91 ppb Pd (palladium).

With a 31.93% MgO content, the sample is magnesium-rich. The plot for lanthanum (ppm) vs MgO (wt %) and the plot for palladium vs MgO lie in the alumina-undepleted komatiite field which is characteristic of the Thompson and Kambalda nickel areas.

The foregoing results prompted a re-examination of exploration data for the remainder of the claim area. During the sampling program for diamond exploration, soil samples were routinely collected and assayed. Our geologists noted that on occasion, high Ni values were being reported sporadically over a 33 km interval within the Company's 100% owned claims. Several areas in particular were of interest including one area 25 km north of the nickel discovery which included samples with anomalous values for Ni, Cu, Co, Cr, Fe, V and Ti. Significantly, the value for copper (Cu) in the glacial till (260 ppm) is higher than the value for copper in the grab sample collected (178 ppm). The area is overburden covered although an outcrop of gossan (a weathered area that may occur over sulphides) was noted. The government geological maps showed this area to be underlain by undifferentiated mafic volcanic rocks.

An interpretation of electromagnetic signatures for this area outlined a fold-like structure 15 km long by between 500 metres to 2 km wide. The limbs of the outlined "fold" vary from less than 10 metres to more than 400 metres in thickness. The fold structure as outlined by the EM survey takes the form of an elongated figure eight where the limbs of the EM anomaly almost join at the center of the figure eight. The positive soil samples and gossans in the area render this geophysical target a prime area for future exploration.

Six kilometres south of the southern part of the foregoing fold structure, a number of parallel EM anomalies, with apparent thicknesses of 200 metres, can be traced over a northeast trend of 14 kilometres. Along the western edge of the belt where komatiitic volcanics have been mapped, up to six parallel linear EM anomalies can be traced for at least 10 kilometres.

The current and future demand for sulphide nickel is well demonstrated and the recent recognition of sulphide nickel potential on the Company's new claims may be indicative of a new nickel area, one of the first discovered in Canada since Voisey's Bay. Current evidence confirms that additional exploratory work is warranted. The Company believes we have a major nickel area and we will be implementing a plan of exploration to test our targets.

The Qualified Persons for the Company are John Knight, P. Geol., Consulting Geologist and N. C. Carter, Ph.D., P. Eng., Consulting Geologist.

About GGL

GGL is a junior diamond exploration company. Its primary focus has been on exploring for diamonds on the Slave Craton in the Northwest Territories, Canada, since 1992. At present GGL has a 100% interest in approximately 400,000 acres of mineral claims and leases and a 40% carried interest (De Beers Canada Inc. 60%) in leases containing 12,757 acres. GGL also has a 100% interest in the McConnell Creek gold and porphyry copper property within the highly mineralized Quesnel Trough in north-central British Columbia and located 15km south of the Kemess South gold-copper mine.

The Company intends to advance its excellent opportunities to find a diamond deposit. Increasing shareholder value with the new commodities may create the synergy needed to successfully complete all our projects.

GGL DIAMOND CORP.

Raymond A. Hrkac, President & CEO

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or are "subject to" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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