GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

May 30, 2006 16:57 ET

Great Western Diamonds Corp.: Potential Kimberlite Targets Identified -Large Land Acquisition Made for Centennial Diamond Project

SASKATOON, SASKATCHEWAN--(CCNMatthews - May 30, 2006) - Great Western Diamonds Corp. (TSX VENTURE:GWD) ("The Company") is pleased to report the acquisition of 588,000 hectares of prime diamond exploration land in two blocks (383 claims) located on the west-central margin of Saskatchewan. The land package includes a large block of claims surrounding previously staked Company ground that was covered by an airborne magnetic survey flown this past January. Detailed analysis of the survey data has identified six shallow magnetic targets similar in size and signature to those associated with kimberlites in the Fort a la Corne Kimberlite Field. The anomalies occur in an up-ice position from extensive diamond indicator mineral trains extending south and southwest across central Saskatchewan and east-central Alberta. Ongoing exploration work in this project will be focused on better delineating the trains over the claims and in drill-testing the anomalies for potentially diamond-bearing kimberlites.

The North Centennial Property block is composed of 233 claims comprising approximately 367,000 hectares located immediately north of the Primrose Lake Air Weapons Range. These claims surround previously staked land amounting to 28,928 hectares in one larger block and 3 small claims. This previously staked land forms the heart of the northern block that lies some 150 kilometres northwest of the Town of Meadow Lake and approximately 225 kilometres north of Lloydminster. The eastern half of this block is traversed diagonally by Provincial Road 903 (graveled) and provides good access to the main areas of interest.

The South Centennial Property block is composed of 150 claims comprising approximately 221,000 hectares located 150 kilometres north of Lloydminster and immediately north of Meadow Lake Provincial Park. An all-season Provincial Road (graveled) crosses this block from east to west providing ready access to the area for exploration activities.

Acquisition of these land parcels follows a detailed evaluation of public domain and internally generated indicator mineral studies that identified indicator mineral trains potentially having their source in the area of the Centennial Project claims. Analysis of the regional geology of the area shows this area to have suitable Archean cratonic roots and structural lineaments that could have supported kimberlite volcanism, plus the presence of Cretaceous host rocks similar in age and character to that seen in the Fort a la Corne Kimberlite Field located in central Saskatchewan. All of these factors are strong positive indicators of kimberlite potential in this area.

The initial follow up of these studies lead to the acquisition of a small block of claims located north of the Weapons Range in 2005 that now forms the heart of the North Centennial Property. This area was flown by Goldak Airborne Surveys of Saskatoon utilizing their tri-axial gradiometer survey. In total 3,184 km was flown at a line spacing of 200 metres covering an area of 550 square kilometres. Detailed analysis of this data identified six shallow magnetic targets similar in size and signature to those associated with kimberlites in the Fort a la Corne Kimberlite Field.

Permitting is in progress for line-cutting and ground geophysical surveys to further detail the dimensions and depths of the target bodies. Successful characterization of any of the anomalies will be followed-up by core drilling before the end of 2006. The Company looks forward to growth of a strong working relationship with the local First Nations groups in this area.

Brent C. Jellicoe, P.Geo. is a Professional Geoscientist in the Province of Saskatchewan and is the Qualified Person responsible for the Centennial Diamond Projects.

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 east-central Saskatchewan and the 100%-owned Centennial Diamond Project in west-central Saskatchewan. Great Western Diamonds 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 mid 2008. 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

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

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