Post by Franko10 ™ on Sept 20, 2004 15:29:01 GMT -5
Great Western Gold Corp.
P.O. Box 69
Saskatoon, SK S7K 3K1
TSX VENTURE: GWG
CUSIP: 39144H107
July 2nd, 2002
COMPANY ACQUIRES COLORADO DIAMOND PROPERTIES
Neil P. Yingling, President/CEO, Director, is pleased to announce the Company has entered into an option agreement to earn up to a 100% interest in diamond claims in three areas of Colorado. Located in Larimer County, the George Creek, Pearl Creek and Sand Creek claim groups host diamond-bearing kimberlite with the potential for additional kimberlite discoveries.
“We are extremely pleased to have the opportunity to earn an interest in these properties,” Mr. Yingling stated. “Previous surface sampling has produced highly encouraging results. The George Creek kimberlite alone, from surface trench samples totaling 3,000 tonnes, resulted in the recovery of over 2,200 carats with individual trench grades ranging from 54 to 100 cpht and averaging 75 cpht. The largest diamond weighed 2.14 carats. While a relatively small 0.5 mm screen size was used, resulting in the recovery of many smaller diamonds, there was a significant population of larger gem-quality stones. A select sample of 594 George Creek macrodiamonds (+2.5mm/-4.5mm) averaged 88.4% colorless diamonds with several diamonds larger than 2 carats. From our perspective, the fact that there has been no systematic exploration effort to evaluate these kimberlites at depth nor to assign tonnages or value per ton is a tremendous opportunity with good upside potential and a challenge we gladly accept.” He added, “By way of comparison, based on published information, it is noteworthy that the average grade of BHP-Billiton's Ekati mine in the Canadian Northwest Territories is around 100 carats per one hundred tonnes and the average grade of De Beer's controlled world-wide diamond reserves is 49.7 carats per one hundred tonnes.”<br>
“We intend to effect complete geophysical and geochemical surveys of all three properties as soon as practical under an accelerated work program along with systematic drilling of the known kimberlites to depth and exploration drilling on new targets.. Processing and production facilities are nearby and available. Accordingly, and based on the test history itself, we are moving quickly to establish strategic alliances with diamond cutters and name-brand merchants and retailers in the U.S. and in Antwerp, Tel Aviv and Bombay” he stated. “The acquisition of these important properties is a further step in the implementation of our strategic business plan whereby we intend to move all current diamond-related projects into a subsidiary company to be incorporated in the near future and tentatively named Great Western Diamond Corp. It is our intention to take the subsidiary public, and the addition of the Colorado properties should be attractive to investors. Approval for this plan was given at our recent Annual General Meeting held in Vancouver on June 19, 2002” he added.
The ten-year Option Agreement calls for an initial payment of $15,000 (already made) and subsequent annual payments and work commitments through 2012 for a total “earn-in” schedule of an additional $2,995,000 with a 3% net return royalty to the optionor once the property is placed in production.
On other projects, the Company is initiating its summer drill program at its Candle Lake diamond-bearing kimberlite properties in central Saskatchewan this week. Previous core drilling on kimberlites Pipe 28 and Pipe 29/30 resulted in projected diamond grades as high as 27 carats per hundred tonnes.
In addition, the summer work program at its Hoidas Lake rare earth project in northern Saskatchewan will commence in the second week of July. Sierra Mineral Management of California is currently in the process of performing non-acid leach testing of Hoidas Lake materials using a newly upgraded patented process and recovery program. “Substantial cost reductions using the SMM process which assured us of up to 100% recovery of oxides can be expected. We are moving forward to effect an open-pit test mine at this location as previously announced” stated the Company President.
And reconnaissance sampling of the recently acquired copper/gold project in southern California commenced last weekend.
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Great Western Gold Corp. is a diversified, Saskatchewan-based, Canadian mining exploration and development company exploring for diamonds, gold and rare earth elements.
For further information, call Neil Yingling at 1 702 896 6724, Gary Billingsley at 1 306 220 5377 or Len Willetts at 1 905 544 8502.
GREAT WESTERN GOLD CORP.
Neil Yingling
President
The TSX 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.
P.O. Box 69
Saskatoon, SK S7K 3K1
TSX VENTURE: GWG
CUSIP: 39144H107
July 2nd, 2002
COMPANY ACQUIRES COLORADO DIAMOND PROPERTIES
Neil P. Yingling, President/CEO, Director, is pleased to announce the Company has entered into an option agreement to earn up to a 100% interest in diamond claims in three areas of Colorado. Located in Larimer County, the George Creek, Pearl Creek and Sand Creek claim groups host diamond-bearing kimberlite with the potential for additional kimberlite discoveries.
“We are extremely pleased to have the opportunity to earn an interest in these properties,” Mr. Yingling stated. “Previous surface sampling has produced highly encouraging results. The George Creek kimberlite alone, from surface trench samples totaling 3,000 tonnes, resulted in the recovery of over 2,200 carats with individual trench grades ranging from 54 to 100 cpht and averaging 75 cpht. The largest diamond weighed 2.14 carats. While a relatively small 0.5 mm screen size was used, resulting in the recovery of many smaller diamonds, there was a significant population of larger gem-quality stones. A select sample of 594 George Creek macrodiamonds (+2.5mm/-4.5mm) averaged 88.4% colorless diamonds with several diamonds larger than 2 carats. From our perspective, the fact that there has been no systematic exploration effort to evaluate these kimberlites at depth nor to assign tonnages or value per ton is a tremendous opportunity with good upside potential and a challenge we gladly accept.” He added, “By way of comparison, based on published information, it is noteworthy that the average grade of BHP-Billiton's Ekati mine in the Canadian Northwest Territories is around 100 carats per one hundred tonnes and the average grade of De Beer's controlled world-wide diamond reserves is 49.7 carats per one hundred tonnes.”<br>
“We intend to effect complete geophysical and geochemical surveys of all three properties as soon as practical under an accelerated work program along with systematic drilling of the known kimberlites to depth and exploration drilling on new targets.. Processing and production facilities are nearby and available. Accordingly, and based on the test history itself, we are moving quickly to establish strategic alliances with diamond cutters and name-brand merchants and retailers in the U.S. and in Antwerp, Tel Aviv and Bombay” he stated. “The acquisition of these important properties is a further step in the implementation of our strategic business plan whereby we intend to move all current diamond-related projects into a subsidiary company to be incorporated in the near future and tentatively named Great Western Diamond Corp. It is our intention to take the subsidiary public, and the addition of the Colorado properties should be attractive to investors. Approval for this plan was given at our recent Annual General Meeting held in Vancouver on June 19, 2002” he added.
The ten-year Option Agreement calls for an initial payment of $15,000 (already made) and subsequent annual payments and work commitments through 2012 for a total “earn-in” schedule of an additional $2,995,000 with a 3% net return royalty to the optionor once the property is placed in production.
On other projects, the Company is initiating its summer drill program at its Candle Lake diamond-bearing kimberlite properties in central Saskatchewan this week. Previous core drilling on kimberlites Pipe 28 and Pipe 29/30 resulted in projected diamond grades as high as 27 carats per hundred tonnes.
In addition, the summer work program at its Hoidas Lake rare earth project in northern Saskatchewan will commence in the second week of July. Sierra Mineral Management of California is currently in the process of performing non-acid leach testing of Hoidas Lake materials using a newly upgraded patented process and recovery program. “Substantial cost reductions using the SMM process which assured us of up to 100% recovery of oxides can be expected. We are moving forward to effect an open-pit test mine at this location as previously announced” stated the Company President.
And reconnaissance sampling of the recently acquired copper/gold project in southern California commenced last weekend.
--------------------------------------------------------------------------------
Great Western Gold Corp. is a diversified, Saskatchewan-based, Canadian mining exploration and development company exploring for diamonds, gold and rare earth elements.
For further information, call Neil Yingling at 1 702 896 6724, Gary Billingsley at 1 306 220 5377 or Len Willetts at 1 905 544 8502.
GREAT WESTERN GOLD CORP.
Neil Yingling
President
The TSX 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.