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International Molybdenum plc

RNS Number:1760K
Galahad Gold Plc
24 March 2005
24 March 2005
                          Galahad Gold PLC ("Galahad")
                             Corporate Developments
Galahad is pleased to report progress in its Molybdenum exploration activities
in Greenland.
International Molybdenum Ltd ("InterMoly"), a company owned 100% by Galahad, has
received a recently completed independent scoping study which has estimated
order of magnitude capital and operating costs of the Malmbjerg molybdenum
deposit.  The capital cost required to bring the project into production is
estimated to be in the region of US$600 million for a 15,000 metric tonnes per
day operation which would produce about 22.5 million pounds of MoO3 per annum.
The lifespan of the mine would be between 15 to 20 years.  The break-even cost
of repayment of capital and interest charges are included.  The current price of
molybdenum is approximately US$35/lb.  The Board of InterMoly believes the
project could be brought into production with 2.5 to 3 years due to the
extensive work carried out by previous holders of the licence.
The Board of InterMoly is currently considering its options for financing the
development of a Bankable Feasibility Study.  These options include the sale of
part of InterMoly either through an Initial Public Offering or a partnership
agreement to develop the project.  InterMoly has identified a Chief Executive
Officer and a Finance Director.
Molybdenum is a metallic element which is most frequently used as an alloying
addition in alloy and stainless steels.  It enhances hardness, weldability,
elevated temperature strength and corrosion resistance.  Although molybdenum is
primarily used in steels, its complex and unique properties have seen it used in
an expanding range of products, which include the production of industrial
chemicals and automotive lubricants.
Enquiries to:
GALAHAD GOLD PLC
Ian Watson / Angelow Damaskos        Tel: 020 7408 2002
PARKGREEN COMMUNICATIONS
Simon Robinson / Justine Howarth     Tel: 020 7493 3713
DRESDNER KLEINWORT WASSERSTEIN
Chris Treneman                       Tel: 020 7623 8000
                      This information is provided by RNS
            The company news service from the London Stock Exchange
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