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 VANCOUVER, British Columbia, March 17 /PRNewswire/ -- At the request of the Vancouver Stock Exchange, the Candle Lake Joint Venture is pleased to release the following interim report based upon the analysis of the initial 59 kilograms, or 10 percent of the 600 kilograms of samples sent to Lakefield Research laboratories.
 Given the small sample size, both the diamond count and the quality of diamonds recovered are significant. Five of the 12 gem quality diamonds are octahedrons, which indicates both the excellent preservation of diamonds and the formation of diamonds with good crystal structure. Pipes 28, 29, and 30A are diamondiferous, and the joint venture has not received any results from Pipes 30B and 30C.
 Pipe No. 28 is located within Township 54 and Range 20 west of the second Meridian. From two samples totaling 14 kilograms, Lakefield has recovered three diamonds which are clear, white, and of gem quality. Two of the diamonds are octahedrons and all three diamonds range in size from 0.3 to 0.6 millimeters.
 Pipes No. 29, 30A, 30B and 30C form a cluster group and are located in Township 58 and Range 20. In one 5.6 kilogram sample from Pipe 29, Lakefield has recovered one macrodiamond splinter which is clear, white and of gem quality. No other results have been received to date from Pipe No. 29.
 From Pipe No. 30A, Lakefield reports the recovery of six diamonds from a 9.6 kilogram sample, and two diamonds from a 12.7 kilogram sample. Seven of the diamonds are clear white gem quality ranging in size from 0.3 to 0.6 millimeters, of which three are octahedrons.
 Gary Billingsley, professional engineer and project manager for the joint venture, reports that the drill core logs and ground magnetic surveys indicate that Pipes 29, 30A, 30B and 30C are unique as the craters have been preserved which enhances both the tonnage and grade potential. The five pipes and craters have a potential for more than 250 million tons in the first 300 feet of kimberlite.
 At the request of the joint venture, Lakefield Research has sent all diamonds recovered to date to a certified gemologist who reports that 90 percent of the diamonds are of gem quality.
 The NQ (1.87 inches diameter) core was split; with 50 percent sent to Lakefield and the remainder retained for reference. Half of the core sent to Lakefield (or therefore 25 percent of the total core) has been processed by caustic fusion, which allows for the inspection and analysis of any diamonds found from the residue, with the remaining 25 percent being attrition milled in preparation for analysis of indicator minerals with an electro-probe analysis. The joint venture has received partial results from the caustic fusion and none of the results from the electro-probe analysis.
 From the attrition milling, Lakefield has polished and mounted several hundred chrome pyrope garnets, almandine garnets, ilmenites, chromites and chrome diopside indicator minerals for electro-probe analysis, which the joint venture expects to receive in the near future.
 At this time, the Candle Lake Joint Venture has either staked or acquired a 100 percent interest in approximately 530,000 acres. War Eagle Mining Company Inc. (Vancouver: WEM) and Great Western Gold Corp. (Vancouver: GWG) currently each own a 50 percent interest in the joint venture. All lands are subject to a 3 percent royalty to third parties with the provision for a buy-down to a 1 percent royalty for $2 million at production on a per claim block basis.
 The joint venture expects to be in receipt of further diamond counts from Pipes 29, 30A, 30B and 30C within the next several days, and the electro-probe analysis results thereafter.
 -0- 3/17/94
 /CONTACT: Andy Hay or Bob Faris, 604-684-8177, or (U.S. toll free) 800-877-1626/
 (WEM. GWG.)

CO: War Eagle Mining Company Inc.; Great Western Gold Corp. ST: British Columbia IN: MNG SU:

LR-JB -- LA022 -- 1149 03/17/94 14:20 EST
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Publication:PR Newswire
Date:Mar 17, 1994
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