GGL Diamond drills Big Hole (July 21, 2004)

Shares in GGL Diamond (GGL-V) dove 4, or about 12%, to 30 in early afternoon trading in Vancouver on July 21, after initial drilling on the Big Hole target failed to return any kimberlite.

Hole no. 04-01 targeted a deep, steep-walled depression in Awry Lake, on the company’ s Fishback property in the Northwest Territories, 70 km northwest of Yellowknife.

The hole cut several sections of highly brecciated and altered granite, intruded by mafic rocks, before veering off course. GGL notes the hole returned 0.6 of a metre (at a downhole depth of 775.3 metres) containing banded, carbonate-rich fine-grained microbreccia.

Further drilling is planned pending the results of geochemical analysis.

Indicator mineral samples down-ice from Big Hole contain a few G9 and G10 garnets as well as two ilmenite grains containing delicate resorption surfaces with perovskite/leucoxene coatings.

The recent hole was collared 2 km northeast of the alteration and breccia containing kimberlite indicator minerals identified earlier this year. Both targets lie along the rim of the Big Hole, and are situated about 1.3 km from the centre of the geophysical anomaly within the Lake.

Earlier this summer, an airborne geophysical and gravity survey identified an electromagnetic conductor and isolated gravity low measuring 500-900 metres in diameter. The feature is coincident with the 75-metre-deep southern portion of the Big Hole.

GGL plans a bedrock geological study and glacial till sampling program in the immediate area of Awry Lake.

Meanwhile, at the end of June, GGL said detailed ground gravity surveying by De Beers Canada Exploration turned up five potential kimberlite targets on the Doyle Lake project, near the northeast end of Great Slave Lake. At the time, about half the survey had been completed.

Two of the targets are situated in Blob Lake; the remaining three are located east of the lake. Two of the targets are land-based, the third lies in the east arm of Lobster Lake.

Last summer, De Beers sank 24 holes along the Doyle property’s diamondiferous kimberlite sill, extending it to 2 km. Lakefield Research recovered 114 microdiamonds (at a 0.1-mm square mesh cutoff ) from an 84.5-kg sample. The biggest stone measures 1.4 by 1.14 by 0.59 mm.

The Doyle Lake project is a 60-40 joint venture between De Beers and GGL. The project consists of 30 claims (LA 1-30) totalling 213 sq. km to the south of Gahcho Ku’s Kennady Lake cluster.