skip to content | skip to menu | graphical version
International Molybdenum plc

RNS Number:5050Z
Galahad Gold Plc
08 June 2004
                                GALAHAD GOLD PLC
 GALAHAD'S SKAERGAARD DEPOSIT IN GREENLAND RAISED TO INFERRED MINERAL RESOURCES
                                     STATUS
Galahad Gold plc, the AIM-quoted mining development company, is pleased to
announce that mineralisation at its Skaergaard project in Greenland has been
raised to Inferred Mineral Resources status. The independent report was prepared
by SRK Consulting Limited (SRK), the international consultant engineering group.
SRK has found that the Skaergaard project's estimates of 10.9m oz of gold, 3.0m
oz of platinum and 35.1m oz of palladium are in compliance with the stipulations
of Canadian National Instrument 43-101 for the classification of mineral
resources.
                                                    Grades            Contained Metal       Accessory
                                                                                             Metals
                                                                                             Values
  Zone         Average     Tonnes       Au        Pd      Pt       Au        Pd     Pt        Per
             Thickness    (millions)    g/t      g/t     g/t      M oz      M oz   M oz      tonne
                (m)       
Gold               2.6          76       1.90    0.55    0.05        4.7     1.4    0.1      $ 20
Palladium          4.2          99       0.24    2.19    0.17        0.8     7.0    0.5      $ 20
Combined          35.3       1,880       0.18    0.58    0.05       10.9    35.1    3.0      $ 20
Subject to proving up reserves, obtaining bank finance and environmental
permits, the Gold Zone would probably be mined in conjunction with the Palladium
Zone. The Gold Zone has 4.7m oz of gold with a grade of 1.9 grams per tonne and
5.8m oz of precious metals gold equivalent with a grade of 2.35 grams per tonne.
The Palladium Zone has 7m oz of palladium with a palladium grade of 2.19 grams
per tonne and 9.9m oz of precious metals palladium equivalent with a grade of
3.14 grams per tonne. Between the Gold and Palladium Zones is an Intermediate
Zone which is approximately 30m thick.
In all three zones there would be very substantial additional revenues averaging
about US$20 per tonne from titanium, vanadium, gallium and copper derived from
the recovery of ilmenite and magnetite concentrates. The Intermediate Zone which
represents the major part of the Combined Zones, would be mined after capital
costs had been recovered, and would also benefit from the very substantial
credits from accessory metals.
Galahad's Total Inferred Mineral Resources
All of the resources held within the Skaergaard deposit, together with those
within the Pebble deposit, operated by Northern Dynasty Minerals Limited, a
company quoted on the Toronto Venture Exchange in which Galahad is the largest
shareholder are now, in the view of independent competent experts, in compliance
with NI 43-101.
Total inferred mineral resources (on the basis of 100% of the Skaergaard deposit
and Galahad's pro-rata percentage of the resources at the Pebble deposit, on a
fully diluted basis) are as follows:
Gold:           20.12m oz
Copper:         5.74 billion lbs
Molybdenum:     313m lbs
Platinum:       3.0m oz
Palladium:      35.1m oz
Commenting on the Report, Ian Watson, Chairman of Galahad Gold PLC said:
"The most important aspect of the upgrade to Inferred Mineral Resources status
is that, in the opinion of an independent Qualified Person, SRK Consulting
Limited, the Skaergaard resource has a reasonable prospect for economic
extraction.
"Both of our projects are now showing great promise."
For further information:
Alastair King                                    +44 20 7408 2002
GALAHAD GOLD PLC
Mark Percy/Jeremy Porter
SEYMOUR PIERCE                                   +44 20 7107 8000
Emma Kane
REDLEAF COMMUNICATIONS                           +44 20 7955 1410/07876 338339
Notes to Editors:
    Further information on Galahad may be found at: www.galahadgold.com.
                      This information is provided by RNS
            The company news service from the London Stock Exchange
END
DRLKGGGVNNKGDZM
site by haecceitas