GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

May 23, 2006 19:16 ET

Great Western Diamonds Corp.: Aggressive Diamond Evaluation Program Planned for Candle Lake C29/30 Kimberlite

SASKATOON, SASKATCHEWAN--(CCNMatthews - May 23, 2006) - Great Western Diamonds Corp. (TSX VENTURE:GWD) ("The Company") is pleased to report plans for an aggressive, multi-disciplinary evaluation program at the Candle Lake Diamond Project, in central Saskatchewan. The main objective of the program is to enable a threshold decision for bulk sampling on the C29/30 Kimberlite. Detailed planning for this program, which includes parallel phases of core drilling, minibulk sampling, and pre-feasibility style streams of investigation, indicate costs up to CDN $22 million over a scheduled duration of two and half years to provide data for an integrated and iterative mining study.

Discovery of Kimberlite C29/30 was confirmed in 1994 by core drilling. Since that time, the body has been sporadically targeted by a total of 17 drillholes and much of the testing for diamonds has been compromised to some extent by inconsistent drilling and sampling methods. Despite this, testing of a total of 2,055 kg of core delivered favorable diamond values (average drillhole stone counts up to 7.4 stones/10kg and simple extrapolated average drillhole results up to 23.9 cpht that included higher grade zones showing stone counts up to 37.2 stones/10kg and simple extrapolated interval grades up to 136 cpht), a total of 41 macrodiamonds recovered from very small samples, and high G10 garnet (up to 12.3%) and diamond inclusion chromites abundances (up to 9.8%) that indicates Kimberlite C29/30 has similar, or better, potential as that shown by other large Fort a la Corne kimberlites at the same stage of early evaluation.

Historical indicators of good diamond potential aside, C29/30 remains vastly under-tested and requires substantial amounts of core drilling and large diameter, reverse circulation minibulk drilling to evaluate the geometry (size, shape, and tonnage), geology (architecture of kimberlite units), and grade (both diamond abundance and average value) of the potential resource.

Drilling will be conducted in stages and will be modified according to results over the course of two winter and two summer campaigns with the bulk of large diameter drilling conducted during winter. This schedule will provide frequent opportunities to report diamond recovery information to the public and to focus results-driven investigations on the most prospective areas of the kimberlite body. Parallel lines of investigation including geotechnical assessment of core samples, downhole geophysical and hydrogeological testing, metallurgical and ore dressing studies, and environmental baseline surveys will be conducted to compliment the geological investigations.

The overall objective of the field program, and compilation of parallel investigations resulting in a Conceptual Mining Study, is to determine whether there is sufficient economic potential in the C29/30 body to carry forward with a large tonnage bulk sample in order to complete a National Instrument 43-101 compliant resource calculation. Similarly, community and government liaison will continue throughout the extent of the program.

Brent C. Jellicoe, P.Geo. 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. Great Western is committed to increasing shareholder value through an aggressive, results-driven exploration and evaluation program targeted on reaching a pre-feasibility decision on the Candle Lake kimberlites by the end of 2007. While Candle Lake is the core diamond project, the Company continues to build a balanced and geographically diverse project portfolio with both advanced and grass-root diamond properties.

Brent C. Jellicoe, P.Geo.

President & CEO


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Contact Information

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