Post by Franko10 ™ on Sept 20, 2004 14:21:18 GMT -5
Great Western Gold Corp.
Suite 303, 416 21st Street East
Saskatoon, SK S7K 0C2
CDNX: GWG
CUSIP: 39144H107
December 4, 2000
Candle Lake Diamond Project Reviewed
The Company has received a copy of a privately-funded due diligence report prepared by the PrimeTrustGroup, an advisory office that performs investigations of companies in the mining sector for a network of private investors. The report, covering the Candle Lake diamond project, was furnished by this group to the Company after it had interviewed Company officials and representatives. The Company requested and was given the right of review and comment to ensure that all information portrayed therein was already a matter of public record. This news release is being disseminated in advance of the special report to that groups' investors to ensure that any new input is also part of the public record. The Company has reviewed the report and is in agreement with its content and conclusions. We are pleased to provide the textural content of the Supplemental Report provided to the Company by the U.S. based PrimeTrustGroup:
"SUPPLEMENTAL DUE DILIGENCE OVERVIEW #001204 GWG 3 of 4
Commissioned by: PrimeTrustGroup
Prepared by: A.J.Fine, A.M.Phipps
Company: Great Western Gold Corp (GWG:CDNX) (GWGCF)
In coordination with: Great Western Gold Corp. Mr. Gary Billingsley, President
GREAT WESTERN GOLD CORP (GWG) RICH IN DIAMOND
PROSPECTS TO CREATE FUNDING COMMITMENTS IN 2001
Two separate and distinct kimberlite properties are under mid-term scrutiny at the present time that are destined to be parcels of projects to be incorporated in the strategic business development plan of the company as it broadens it's intended scope of operations and establishes enhanced portals of funding.
The company possesses one of the strongest teams of geologists and exploration geophysicists and mining engineers now active in Saskatchewan. The property assets being studied for probable activation include its Candle Lake (CL) property that is in joint venture with War Eagle Mining Company. GWG maintains an 80% position in the joint venture and WEM, 20%. Two large kimberlite structures proven to be diamond-bearing exist on that property. It has been determined that a new property prospect has been identified at yet another location remote to Candle Lake whose " magnetic signatures have been identified that indicate strongly 7 targets that are interpreted to be kimberlite," according to Gary Billingsley (C.A., P.Eng., P.Geol.) President of GWG.
Our review of historical data, available data and records coupled to interviews with company personnel, indicate there is a difference between Candle Lake kimberlites and those being exploited by others at Fort a la Corne several miles to the South. CL, located 115 km NNE of Prince Albert, Saskatchewan is accessible by all-weather road and logging trails. It consists of 47 claims covering 56,000 acres. Analysis has concluded Pipe 28 and Pipe 29/30, the two kimberlites, are diamond-bearing. Pipe 28 is estimated at 6-8 million tons, and Pipes 29/30 at 60-70 million tons.
Based on prior drilling, the macro count per kg of sample is comparable to FalC NQ drilling. The incomplete prior mini-bulk sample by Kennecott in the 1990's showed the potential to recover larger stones. Three of five diamonds recovered were .08, .08 and .07 carats. This is near the world average size of .08 carats and higher than FalC's average of .05 based on drill programs prior to the fall of 2000. Compared to FalC kimberlite there appears to be a difference. "The Candle Lake kimberlites appear to be "more massive looking, lacking much bedding or layering. Also, in mineral chemistry the CL kimberlite does not have as strong an eclogitic component as does FalC, but is strongly peridotitic. CL indicators include more G10 garnets and fewer eclogitic garnets than FalC" commented Mr. Billingsley.
It is noted that Mr. Billingsley knows whereof he speaks. He has been involved in exploration of Saskatchewan diamonds for the past 12 years and was involved in major kimberlite discoveries in all three diamond areas. These include Sturgeon Lake (1989), Candle Lake (1994) and Fort a la Corne (1996). He is part of a team of exploration and development experts that focus on earth resource exploitation irrespective of the commodity.
In our review it was noted that only _ of the NQ core from the 1994 drilling were used for diamond recovery. This probably resulted in lower diamond counts per kg and in hindsight too much rock was used for indicator mineral chemistry. In 1995 it was a combination of split core and whole core. Records show the lab was not required to recover diamonds much below 0.2 mm. In effect, total diamond counts are less than what other companies may report. According to Mr. Billingsley, "macro counts compared to Fort a la Corne for NQ core show that CL is definitely as good or better at the same stage." He continued, "It is important to note how the macro counts improve when large diameter (PQ) core is used a Fort a la Corne, which has yet to be done at Candle Lake."
It was agreed that the CL diamond project has not been given the quality exploration effort that it deserves. There is no conclusion as to the ultimate shape or size of the two kimberlites or of ultimate quality or quantity of their diamond content. However, based on our inspection of the scaled magnetic charts, it appears to us that the signature mass upon which Pipe 28 is targeted approximates 300 meters by 500 meters. The mass upon which pipes 29 and 30 are located appear to approximate 1,500 meters by 500 meters. "Even though work elsewhere in the province may be more advanced in terms of large diameter mini-bulk sampling, CL pipes have as good a chance of being economic as any other kimberlite in Saskatchewan. My personal feeling is that CL has a better chance of producing larger diamonds than elsewhere providing proper sampling techniques are applied", stated Mr. Billingsley.
To do a proper test of CL before a bulk test can be accomplished, Mr. Billingsley and technical advisor Neil Yingling pointed out that an effort will get underway in the near future to initiate a new private placement to raise approximately $2 million for delineation core drilling at CL coupled to initial sampling on the new (unidentified) property that is remote to Candle Lake.
It is a matter of time and money. It is a matter of focusing resources and channeling effort and focus to the immediate challenge of structuring priorities within a now-evolving strategic plan. As outlined in the previous supplemental report of November 29th featuring the company's Rare Earth (RE) project, it is readily understood the company is committed to putting it's first priority on the RE program before activating and funding it's diamond projects.
It is with the above in mind that Mssrs. Billingsley and Yingling are now underway on development of the strategic business development plan. It will define strategies, delineate funding requirements, define project priorities and phased engagement of RE, diamond exploration and development as well as other precious metal opportunities the company is studying at this time. This supplemental report on Great Western Gold Corp., its properties and project assets coupled to prior reports by our due diligence team are intended to be incorporated in a final overview report expected to be completed at an early date.(AJF/AMP)
Note: This report has been provided to GWG for it's subsequent review and input revision to ensure that The PTG and interested parties will, upon its disclosure be assured that content and conclusions or editorial comment by the preparers is factual. As such it has been agreed that prior to disclosure to any of the group of investors to which this is directed that GWG shall have the opportunity to issue textural content of this report as a company news release in the event any content or utterance has not until this time been made public. It is understood that some elements of the resulting interview may have resulted in an utterance than may have not previously been made public. "
--------------------------------------------------------------------------------
Great Western Gold Corp. is a Saskatchewan-based corporation engaged in the acquisition, exploration and development of unique and strategic mineral properties including diamonds and rare earth elements. Shares of the Company trade on the Canadian Venture Exchange under the symbol GWG.
For further information, please call Gary Billingsley at 1 306 664 0028.
GREAT WESTERN GOLD CORP.
Gary Billingsley
President
The Canadian Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.
© 2004 Great Western Minerals Group Ltd.
Suite 303, 416 21st Street East
Saskatoon, SK S7K 0C2
CDNX: GWG
CUSIP: 39144H107
December 4, 2000
Candle Lake Diamond Project Reviewed
The Company has received a copy of a privately-funded due diligence report prepared by the PrimeTrustGroup, an advisory office that performs investigations of companies in the mining sector for a network of private investors. The report, covering the Candle Lake diamond project, was furnished by this group to the Company after it had interviewed Company officials and representatives. The Company requested and was given the right of review and comment to ensure that all information portrayed therein was already a matter of public record. This news release is being disseminated in advance of the special report to that groups' investors to ensure that any new input is also part of the public record. The Company has reviewed the report and is in agreement with its content and conclusions. We are pleased to provide the textural content of the Supplemental Report provided to the Company by the U.S. based PrimeTrustGroup:
"SUPPLEMENTAL DUE DILIGENCE OVERVIEW #001204 GWG 3 of 4
Commissioned by: PrimeTrustGroup
Prepared by: A.J.Fine, A.M.Phipps
Company: Great Western Gold Corp (GWG:CDNX) (GWGCF)
In coordination with: Great Western Gold Corp. Mr. Gary Billingsley, President
GREAT WESTERN GOLD CORP (GWG) RICH IN DIAMOND
PROSPECTS TO CREATE FUNDING COMMITMENTS IN 2001
Two separate and distinct kimberlite properties are under mid-term scrutiny at the present time that are destined to be parcels of projects to be incorporated in the strategic business development plan of the company as it broadens it's intended scope of operations and establishes enhanced portals of funding.
The company possesses one of the strongest teams of geologists and exploration geophysicists and mining engineers now active in Saskatchewan. The property assets being studied for probable activation include its Candle Lake (CL) property that is in joint venture with War Eagle Mining Company. GWG maintains an 80% position in the joint venture and WEM, 20%. Two large kimberlite structures proven to be diamond-bearing exist on that property. It has been determined that a new property prospect has been identified at yet another location remote to Candle Lake whose " magnetic signatures have been identified that indicate strongly 7 targets that are interpreted to be kimberlite," according to Gary Billingsley (C.A., P.Eng., P.Geol.) President of GWG.
Our review of historical data, available data and records coupled to interviews with company personnel, indicate there is a difference between Candle Lake kimberlites and those being exploited by others at Fort a la Corne several miles to the South. CL, located 115 km NNE of Prince Albert, Saskatchewan is accessible by all-weather road and logging trails. It consists of 47 claims covering 56,000 acres. Analysis has concluded Pipe 28 and Pipe 29/30, the two kimberlites, are diamond-bearing. Pipe 28 is estimated at 6-8 million tons, and Pipes 29/30 at 60-70 million tons.
Based on prior drilling, the macro count per kg of sample is comparable to FalC NQ drilling. The incomplete prior mini-bulk sample by Kennecott in the 1990's showed the potential to recover larger stones. Three of five diamonds recovered were .08, .08 and .07 carats. This is near the world average size of .08 carats and higher than FalC's average of .05 based on drill programs prior to the fall of 2000. Compared to FalC kimberlite there appears to be a difference. "The Candle Lake kimberlites appear to be "more massive looking, lacking much bedding or layering. Also, in mineral chemistry the CL kimberlite does not have as strong an eclogitic component as does FalC, but is strongly peridotitic. CL indicators include more G10 garnets and fewer eclogitic garnets than FalC" commented Mr. Billingsley.
It is noted that Mr. Billingsley knows whereof he speaks. He has been involved in exploration of Saskatchewan diamonds for the past 12 years and was involved in major kimberlite discoveries in all three diamond areas. These include Sturgeon Lake (1989), Candle Lake (1994) and Fort a la Corne (1996). He is part of a team of exploration and development experts that focus on earth resource exploitation irrespective of the commodity.
In our review it was noted that only _ of the NQ core from the 1994 drilling were used for diamond recovery. This probably resulted in lower diamond counts per kg and in hindsight too much rock was used for indicator mineral chemistry. In 1995 it was a combination of split core and whole core. Records show the lab was not required to recover diamonds much below 0.2 mm. In effect, total diamond counts are less than what other companies may report. According to Mr. Billingsley, "macro counts compared to Fort a la Corne for NQ core show that CL is definitely as good or better at the same stage." He continued, "It is important to note how the macro counts improve when large diameter (PQ) core is used a Fort a la Corne, which has yet to be done at Candle Lake."
It was agreed that the CL diamond project has not been given the quality exploration effort that it deserves. There is no conclusion as to the ultimate shape or size of the two kimberlites or of ultimate quality or quantity of their diamond content. However, based on our inspection of the scaled magnetic charts, it appears to us that the signature mass upon which Pipe 28 is targeted approximates 300 meters by 500 meters. The mass upon which pipes 29 and 30 are located appear to approximate 1,500 meters by 500 meters. "Even though work elsewhere in the province may be more advanced in terms of large diameter mini-bulk sampling, CL pipes have as good a chance of being economic as any other kimberlite in Saskatchewan. My personal feeling is that CL has a better chance of producing larger diamonds than elsewhere providing proper sampling techniques are applied", stated Mr. Billingsley.
To do a proper test of CL before a bulk test can be accomplished, Mr. Billingsley and technical advisor Neil Yingling pointed out that an effort will get underway in the near future to initiate a new private placement to raise approximately $2 million for delineation core drilling at CL coupled to initial sampling on the new (unidentified) property that is remote to Candle Lake.
It is a matter of time and money. It is a matter of focusing resources and channeling effort and focus to the immediate challenge of structuring priorities within a now-evolving strategic plan. As outlined in the previous supplemental report of November 29th featuring the company's Rare Earth (RE) project, it is readily understood the company is committed to putting it's first priority on the RE program before activating and funding it's diamond projects.
It is with the above in mind that Mssrs. Billingsley and Yingling are now underway on development of the strategic business development plan. It will define strategies, delineate funding requirements, define project priorities and phased engagement of RE, diamond exploration and development as well as other precious metal opportunities the company is studying at this time. This supplemental report on Great Western Gold Corp., its properties and project assets coupled to prior reports by our due diligence team are intended to be incorporated in a final overview report expected to be completed at an early date.(AJF/AMP)
Note: This report has been provided to GWG for it's subsequent review and input revision to ensure that The PTG and interested parties will, upon its disclosure be assured that content and conclusions or editorial comment by the preparers is factual. As such it has been agreed that prior to disclosure to any of the group of investors to which this is directed that GWG shall have the opportunity to issue textural content of this report as a company news release in the event any content or utterance has not until this time been made public. It is understood that some elements of the resulting interview may have resulted in an utterance than may have not previously been made public. "
--------------------------------------------------------------------------------
Great Western Gold Corp. is a Saskatchewan-based corporation engaged in the acquisition, exploration and development of unique and strategic mineral properties including diamonds and rare earth elements. Shares of the Company trade on the Canadian Venture Exchange under the symbol GWG.
For further information, please call Gary Billingsley at 1 306 664 0028.
GREAT WESTERN GOLD CORP.
Gary Billingsley
President
The Canadian Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.
© 2004 Great Western Minerals Group Ltd.