Posted for reference
War Eagle Mining Company Inc.
11/26/98 -
Kennecott Terminates Interest in Candle Lake Diamond Joint Venture
WAR EAGLE MINING CO INC ("WEM-V;WAREF-L")
GREAT WESTERN GOLD CORP ("GWG-V") - Kennecott
Terminates Interest in Candle Lake Diamond Joint Venture -
Mini-Bulk Sample Results
G. Billingsley, Director of War Eagle Mining Company Inc.,
announces that Kennecott Canada Exploration Inc., the operator
of the Candle Lake Joint Venture, has advised its partners that they are terminating their Joint
Venture interest and will no longer hold any interest in either the Joint Venture or the properties.
Further to the August 6, 1998 News Release on the Candle Lake Joint Venture, Kennecott also
advised its partners that there has been an indefinite delay in the processing of a portion of the
mini-bulk sample by caustic fusion at their Thunder Bay laboratory. The samples are being stored
on the Miramar Con Mine property in Yellowknife and cannot be shipped due to a workers' strike
at the mine. Therefore, the Joint Venture is reporting the initial processing results of the mini-bulk
sample carried out at the Diavik Bulk Sample Plant in Yellowknife.
The mini-bulk sample was obtained by drilling two 27 cm Reverse Circulation drill holes into
kimberlite body C29/30. Approximately 7.6 tonnes of kimberlite (dry weight) was recovered from
a nominal weight of 17.6 tonnes indicating a 43% recovery factor overall. Initial processing was
designed to recover diamonds larger than 1.0 mm in size using dense media separation. A total of
0.28 carats were recovered from the sample suggesting an effective grade of 3.7 carats per 100
tonnes.
Details by drill hole are:
Theoretical Dry Sample Carats Sample
Hole No. Weight(t) Weight(t) Recovered Recovery(%) Carats/100t
C30RC-02 11.63 4.59 0.03 39.47 0.65
C30RC-03 5.92 3.00 0.25 50.26 8.28
17.55 7.59 0.28 43.11 3.65
The two largest stones recovered weighed 0.08 carats each. The majority of the stones were white and
transparent, but only 40% were intact, suggesting fracturing may have taken place during drilling.
While the results seem disappointing, Company management is of the opinion that the poor sample
recoveries encountered in the drilling, whatever the cause, make it premature for the remaining partners
to abandon the project. Previous core drilling results on C29/30 gave predicted grades as high as 27
carats per 100 tonnes and yielded macro:micro diamond ratios that indicated good potential for a
population distribution with coarse diamond potential. The average size of the diamonds recovered in
hole C30RC-03 is 20% larger than the average size of all diamonds recovered in Saskatchewan to date.
Management feels that higher-recovery sampling is necessary before the larger diamond potential of the
kimberlite is ruled out. To this end, the Company will continue to maintain its interest in the Candle
Lake Diamond Joint Venture and will use its best efforts to ensure that a complete mini-bulk sample is
obtained.
The Candle Lake Joint Venture will now consist of equal-interest partners Great Western Gold Corp. and
War Eagle Mining Company Inc. TEL: (604) 606-7979
Joseph Flatley or Andrew Hay
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