Great Western Minerals Group Ltd.
TSX VENTURE : GWG
PINK SHEETS : GWMGF

Great Western Minerals Group Ltd.

May 05, 2008 12:14 ET

Great Western Minerals Group Ltd: Winter Drilling Program Completed at Hoidas Lake; New Mineralized Zone Identified

SASKATOON, SASKATCHEWAN--(Marketwire - May 5, 2008) - Great Western Minerals Group Ltd. ("GWMG" or "the Company") (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) is pleased to announce the completion of the winter drilling program at its 100%-owned Hoidas Lake Rare Earth Elements ("REE") property located 50 km northeast of Uranium City in northern Saskatchewan.

A total of 6,836 metres was drilled in 32 holes to depths of 300 metres. The JAK Zone Vein System has been extended by 250 metres to 1,000 metres and remains open along strike and at depth. The drilling also extended the zone to a depth of 300 metres; previously, this zone had been tested only to a depth of 150 metres.

Preliminary indications are that the extensions of the previously drilled veins show similar mineralization to that previously identified in the JAK Zone and are expected to have similar grades. In addition, a new vein system has been identified in the Footwall of the JAK Zone.

As a result of the apparent success of this program, GWMG is now planning to conduct a summer drilling program to test the Nisikkatch South vein system which is located approximately 10 km to the southwest of the JAK Zone. This summer drilling program will also test the new JAK Zone Footwall Vein, along with a number of other targets that were previously identified by prospecting and geophysical surveys in the Hoidas Lake area.

GWMG has a rigorous Quality Assurance/Quality Control program whereby blanks, duplicates and standards are inserted into the sample stream at regular intervals. The mineralized core has been geologically logged and split, and approximately 1,300 samples have been sent to the Geoanalytical Lab of the Saskatchewan Research Council in Saskatoon for analysis. Results are expected in mid July 2008.

Jim Engdahl, President and CEO of Great Western Minerals Group said, "We are greatly encouraged about what we see so far and we are looking forward to the assay results. Seeing that the mineralization apparently now extends beyond the previously identified zone, and with the discovery of a new vein system, we have reason to be excited."

Engdahl adds, "We are also very excited about the potential for the phosphate at Hoidas Lake. One of the main rare-earth-bearing ore minerals is the phosphate mineral apatite, the principal ore of phosphorous used in fertilizer. Previously, we had not considered the value of the phosphate in the economics, but with current prices for Diammonium Phosphate around $1,000 per tonne, we are taking a closer look at the potential opportunity that this valuable by-product may create for us. Depending on the grade and distribution, this could add significant value to the entire property".

John Pearson (MSc., P.Geo), Vice President Exploration has acted as the non-independent qualified person for this news release. The qualified person has visited the project site, examined the drill intercepts reported, reviewed the available technical information for the project, and has verified that there were no significant discrepancies with respect to the quality control samples submitted for analysis along with the drill core.

Great Western Minerals Group Ltd. is a Canadian based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.

Jim Engdahl

President

Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

CUSIP: 39141Y 10 3

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

Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 659-4500
    or
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Email: info@gwmg.ca
    Website: www.gwmg.ca