GGL soars on nickel find during diamond hunt

Vancouver – Sounding somewhat reminiscent of the mid-1990s Voiseys Bay nickel discovery in Labrador, GGL Diamonds (GGL-V, GGDMF-O) has come across nickel mineralization during the course of its diamond exploration program at the Winter Lake project area located about 260 km north-northeast of Yellowknife in the Northwest Territories.

The analogy certainly wasnt lost on investors that sent the stock soaring more than 1,000% to an inter-day high of $1.50 per share before closing at 83, up 70 per share on an astounding 52 million shares of volume. Its trading activity accounted for more than half the TSX Venture Exchanges total volume on April 4th.

An exploration team hunting for kimberlites prior to last winters freeze-up sampled a 60 metre by 20 metre outcrop of altered ultramafic rock that returned an assay of 0.41% sulphide nickel plus copper and cobalt values. GGL is also encouraged by the samples high magnesium oxide content (31.93% MgO) that puts the mineralogy in a similar field to those from the nickel camps of Thompson in northern Manitoba and Kambalda in Western Australia.

Our fellows that were out in the field were astute enough to recognize the ultramafic rocks, but the actual results from that didnt come until Christmas-time, explained GGL Diamond president and CEO Ray Hrkac. By itself it really wasnt very meaningful, it took quite a bit of work then after that.

GGL re-examined data from the remainder of its claim area and noted that high nickel values were occasionally reported in soil geochemistry samples over a 33-km trend.

One area highlighted by the geochemical results is 25-km north of the nickel grab sample and also contains significant copper. The area of the soil sample is noted as being mostly covered by overburden although some gossanous outcrop was reported.

GGL has now quietly expanded its land position to an area 80-km by 20-km to cover what it interprets as the most prospective portion of the potential nickel belt.

The company also re-interpreted previous airborne geophysical surveys (magnetic and EM) flown over its project area. Conducted on 60-metre line spacings over what is now being looked at as a potential nickel belt, a 15-km fold-like structure has been outlined that is from 500 metres to 2 km wide.

Hypothesized limbs of the fold-structure range from less than 10 metres to more than 400 metres in thickness. The EM anomaly of the fold structure forms an elongated figure eight where the limbs of the EM anomaly almost join at its centre.

The geophysical anomaly is coincident with positive geochemistry and the gossanous outcrop giving GGL an attractive exploration target for its upcoming season.

GGL Diamonds, previously known as Gerle Gold, has been exploring for diamonds in the Northwest Territories Slave Craton since 1992 with a land position of about 1,600 sq. km plus a 40% carried interest in a partnership with De Beers Canada on about 52 sq. km of leases. The junior also holds some copper-gold porphyry projects in north-central B.C.