GGL Diamond Corp.
TSX VENTURE : GGL

GGL Diamond Corp.

November 07, 2005 17:49 ET

GGL Reports on Activities for the Third Quarter Ended Aug. 31, 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - Raymond A. Hrkac, President and CEO of GGL Diamond Corp. (TSX VENTURE:GGL) reported on the activities of the Company for the period ended Aug. 31, 2005 and subsequent events in the third quarter report, which is currently available in full on the GGL website (www.ggldiamond.com). Below are highlights from the report:

Diamond Exploration, Slave Craton, Northwest Territories, Canada

DOYLE LAKE PROJECT, SOUTHEAST SLAVE CRATON

Doyle, GGL 100% owned

Despite adverse weather conditions this summer, the GGL crew collected a mini-bulk sample of approximately 45 tonnes from the Doyle diamondiferous kimberlite sill. Processing of the sample is expected to begin later this month, the results will play an important role in determining the scope and direction of the next exploration program.

Having drilled six diamond drill holes at the sill this summer, the kimberlitic body is now better defined, with the present known dimensions of the sill being at least 2 km along a northeast strike and 820 metres down dip to the northwest.

Two other discreet targets were drilled at Doyle, with the first hole suggesting the presence of a parallel kimberlite body beneath the known sill. This is considered an important development requiring further exploration.

Anticipating a winter drill program, the diamond drill has been left on the Doyle property.

Doyle Leases, De Beers 60%, GGL 40% (carried interest)

De Beers has retained the LA 4 to LA 9 claims inclusive and the fractional claims Extra 2 to Extra 4 inclusive (the "Doyle Leases"), while returning the remaining properties to GGL. De Beers, however, has indicated it has no plans to continue exploration of the Doyle Leases. Consequently, the two companies have been discussing the return of all or some of the leases to GGL to allow GGL to continue exploration. The discussions are ongoing and De Beers has expressed a willingness to co-operate and find a way to resolve the matter.

Recent property acquisition, Doyle project area

As reported last quarter, the Company acquired 21 mining leases (51,109 acres) from Mountain Province Diamonds Inc. (MPV), Camphor Ventures Inc., and De Beers Canada Inc., subject to Royalty Agreements, in which royalties total 1.5% (For a description of these properties, please see the Quarterly Report).

The acquired leases contain the MZ Lake kimberlite "sills", four of which have been determined to be diamondiferous. The largest number of micro-diamonds, 28 diamonds recovered from five kg, was recovered from drill hole MPV-01-73.

GGL has obtained from De Beers and is currently evaluating the digital data for the exploration work completed to date on the 21 mining leases. GGL believes that all of these leases have exploration potential to find new kimberlite.

FISHBACK PROJECT, SOUTHWEST SLAVE CRATON

The alteration encountered during the spring drilling program at Fishback in drill hole FB-05-11 has now been proven to contain kimberlite indicators and G9 and G10 pyrope garnets. Further indicator and chemical analysis of two of the holes, drilled in spring, is in progress.

The evidence gathered to date point to the presence of a kimberlite or kimberlites in this area and confirm the need to continue exploration here. An additional 11 heavy mineral samples were collected in September this year and have been sent out for analysis.

PROPERTIES IN THE CENTRAL SLAVE CRATON

Five targets -- one on Starfish and four on Zip -- were drilled over a three-week period from late August to the middle of September. Selected on the basis of mineral trains and geophysical anomalies, four of these targets did not yield kimberlite, the largest target will be redrilled this winter as the initial drill hole was unable to reach bedrock. The Zip property has yielded samples containing large numbers of kimberlite indicator minerals with diamond stability field chemistry. To determine the source, more detailed sampling is required. An additional 37 samples were collected from the CH project area this fall.

The Company plans to continue drilling within the CH area as funds permit and expects the next drill program to begin on or before March 2006. The diamond drill has been left on the Zip property in anticipation of continuing the drill program.

GOLD PROPERTIES

Given the improved political and economic climate for mineral exploration and improved commodity prices, the Company is currently in the process of taking a fresh look at both McConnell Creek, in British Columbia, for both gold and copper prospects, and at its Happy Creek, Nevada property, for gold.

FINANCIAL POSITION AND SUBSEQUENT EVENTS

For the nine months ended August 31, 2005, the Company incurred expenses of $1,886,129 on exploration, 5% lower than for the same period in 2004.

Subsequent to August 31, 2005 the Company completed a private placement of $398,767 by way of a non-brokered placement of 2,044,961 units at $0.195 per unit. Each unit consists of one common share and one non-transferable warrant. One warrant entitles the holder to purchase one common share for a term of two years at $0.26 per share for two years. The Company paid a finder's fee of $24,600 on a portion of the proceeds. The securities have a hold period expiring on November 28, 2005.

GGL DIAMOND CORP.

Raymond A. Hrkac, President & CEO

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

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