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The Company completed the sale of it's remaining 20% interest and retains an over-riding royalty from the sale of minerals produced from the 50,000 acre Candle Lake Project in central Saskatchewan. There are two known diamondiferous kimberlite bodies 35 km apart. Exploration drilling by Kennecott Canada defined the larger of the two bodies to contain over 60 million tonnes of diamondiferous kimberlite and the smaller body to contain 6 million tonnes of diamondiferous kimberlite. The larger body yielded 42 macro and 182 micro diamonds from 13 core drill holes and the smaller body yielded 27 macro and 167 micro diamonds from 9 core drill holes.
On December 31,2004 War Eagle Mining Company Inc.and Great Western Minerals Group Ltd. ("Minerals", "GWG") announced that GWG has completed the acquisition of War Eagle's undivided 20% interest in the Candle Lake Joint Venture (the "CLJV"), consisting of 34 diamond claims (the "Claims") located in the Candle Lake area of Saskatchewan. As a result of this acquisition, GWG and its affiliates now own a 100% undivided interest in the Claims and WAR will retain an over-riding royalty equal to 1.5% of the gross proceeds from the sale of minerals produced from the Claims.
More information regarding the Candle Lake project can be found on the Great Western Diamonds Corp. website.
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