GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

November 09, 2006 13:29 ET

Great Western Diamonds Expands Exploration Into Alberta

SASKATOON, SASKATCHEWAN--(CCNMatthews - Nov. 9, 2006) - Great Western Diamonds Corp. (TSX VENTURE:GWD) (GWD, "The Company") is pleased to announce that it has entered into agreements to acquire exploration properties in northern Alberta based on: a) proximity to known diamond-bearing kimberlites, b) proximity to significant kimberlite and diamond indicator mineral sites, and c) prospective geological setting.

The Utikuma West Property is located approximately 310 km NNW of Edmonton along the southern margin of the Buffalo Head Hills Kimberlite Field. The 157,000 hectare property was acquired from Sandswamp Exploration Ltd. and Geolink Exploration Ltd. Government surveys indicate that kimberlitic minerals found on the property, including G9 garnets, eclogitic garnets, and olivine, occur proximal to prospective basement geology and host rock stratigraphy with excellent access and infrastructure developed during substantial oil and gas exploration programs in the area. The property hosts a drillable geophysical target with a similar signature similar to that shown by previously drilled kimberlites in the main part of the known field. Furthermore, the chemistry of indicator minerals found on the property indicate an as yet undiscovered, and potentially prospective, kimberlite source distinctive from that of the Buffalo Head Hills Kimberlite Field.

Under the terms of this Agreement, GWD will pay each of Sandswamp and Geolink $50,000 cash and 100,000 GWD shares, subject to stock exchange approval and hold periods. Sandswamp and Geolink will together retain a 3% Royalty Interest of which GWD has the option to purchase back 2% for $750,000 during the first three years and increasing to $1.5 million thereafter.

The Peerless Lake Property located 350 km NW of Edmonton was also acquired from Sandswamp. The 78,000 hectare property lies along the eastern margin of the Buffalo Head Hills Kimberlite Field in an area of positive topographical relief and having relatively thin overburden ranging from 40 to 120m (AGS Earth Science Report 2000-08). The property was selected based on its close proximity to diamondiferous kimberlites and prospective structural and stratigraphic setting.

Under the terms of the Agreement GWD has a work commitment of $50,000 and will pay Sandswamp $20,000 cash and 40,000 shares on signing and $30,000 cash and 75,000 shares on the first anniversary. The shares are subject to regulatory approval and hold periods. Sandswamp will retain a 2% Royalty of which GWD can purchase back 1% for $250,000 within 3 years, after which the purchase price increases to $1 million.

"The Utikuma and Peerless Lake properties provide GWD an opportunity to utilize our substantial expertise with the prairie kimberlite model in a grass-roots exploration scenario that also contains a drill-ready potential kimberlite target located adjacent to a proven diamond-bearing kimberlite field", says Brent C. Jellicoe, President and CEO of Great Western Diamonds Corp.. "We are fully prepared to investigate and substantiate the known indicator mineral anomalies on these properties and to drill-test a compelling geophysical target on Utikuma during 2007."

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

(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) 668-0701
    or
    Great Western Diamonds Corp.
    Gord Dent
    Manager of Investor Relations
    (306) 668-0701
    or
    Great Western Diamonds Corp.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Email: info@gwdc.ca
    Website: www.gwdc.ca