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GREAT CENTRAL MINES ANNOUNCES AGREEMENT TO EARN INTEREST IN THE LARGEST DIAMOND BEARING LAMPROITE PIPE IN THE WORLD

 MELBOURNE, Australia, Aug. 2 /PRNewswire/ -- Great Central Mines (ADRS - NASDAQ: GTCMY) today announced that the company together with Mt. Kersey Mining N.L. ("Mt. Kersey") and Johnson's Well Mining N.L. ("Johnson's Well") has reached agreement to earn a 60 percent interest in the diamond bearing Walgidee Hills lamproite pipe -- the largest in the world, in the West Kimberleys of Western Australia, from Colonial Resources N.L. ("Colonial").
 The company as manager and operator will earn a 42 percent interest while Mt. Kersey and Johnson's Well are each earning a 9 percent interest. Colonial will retain a 20 percent interest and prospectors, George Lee and William Richmond the balance of 20 percent over which Colonial has pre-emptive right.
 520 Microdiamonds and 17 Macrodiamonds Recovered
 The Walgidee Hills pipe is over 1,000 acres in size and is the largest in the world. Because of the presence of diamond bearing tuffs and breccias along the margin it is considered an old volcanic crater. Previous sampling by CRA Exploration Pty. Ltd. ("CRA") recovered 520 microdiamonds from a 1.5 tonne rock sample for a grade of 6.1 carats per 100 tonnes.
 Processing of a small bulk sample (480 tonnes) by CRA produced 17 macrodiamonds with the largest in the 2 to 4mm range. The bulk sample sites were limited to the eastern side of the pipe as CRA believed that a chain of low hills on the western side represented a site of importance to the Aborigines. Discussions with the Aborigines have commenced in regard to access and other matters. The Walgidee Hills pipe is located 160 kilometers southeast of Derby.
 The company together with Mt. Kersey and Johnson's Well are committed to spend $500,000 on a pro-rata basis and have the right but not the obligation to earn 60 percent by bringing the project to bankable feasibility within five years.
 Colonial announced recently an option to obtain an 80 percent interest in the tenement.
 The Directors are of the view that the Walgidee Hills pipe is highly prospective but has been inadequately tested and sampled to date. Extensive drilling and bulk sampling of the pipe is being planned.
 Great Central over the past 2 to 3 years established the expertise, exploration team and equipment while exploring the Greater Nabberu Region to adequately and rapidly evaluate the Walgidee Hills pipe. Intensive bulk sampling and drilling is continuing at the company's Greater Nabberu Region diamond exploration.
 -0- 8/2/93
 /CONTACT: David Gold for Great Central Mines, 212-877-6851/
 (GTCMY)


CO: Great Central Mines ST: IN: MNG SU:

LG-TS -- NY011 -- 8158 08/02/93 08:21 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
Words:435
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