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International Molybdenum plc

RNS Number:9760B
Galahad Gold Plc
16 August 2004
                                GALAHAD GOLD PLC
                          ("Galahad" or the "Company")
                  ACQUISITION OF FURTHER LICENCE IN GREENLAND
Galahad, the AIM-quoted mining development company, is pleased to announce that
it has acquired a 100% interest in an exclusive exploration licence (Licence
No.2004/17) for the Malmbjerg molybdenum deposit, located at the Werner Bjerge
in Eastern Greenland. This deposit has been identified through previous
exploration activities as a world class molybdenum deposit with an unclassified
mineral resource estimate of 150 m tonnes containing 0.23% MoS2 (at a 0.16% cut
off) and 0.02% WO3.
The Climax-type mineralization was first discovered in 1954 and over the period
from 1955 through to 1979 was explored as the Malmbjerg Project by means of:
   *surface sampling;
   *147 diamond drill holes totalling 22,877 metres; and
   *three underground adits totalling 1329 metres.
Following completion of this exploration work, the deposit was classified as a
proven reserve under the regulations in-force at the time. At this stage,
Galahad regards the deposit as an unclassified mineral resource pending a
complete review of all the previous exploration data. This review will also
outline a development programme with the aim of taking the project to bankable
feasibility and production. Galahad has paid a nominal licence fee to the
Government of Greenland Bureau of Minerals and Petroleum for the licence.
There is a growing demand for molybdenum which is a metallic element most
frequently used as an alloying element in alloy and stainless steels. It
enhances strength, hardenability, weldability, toughness, elevated temperature
strength and corrosion resistance. Although molybdenum is primarily used in
steels, its complex and unique properties have proved invaluable in a constantly
expanding range of uses which include the production of industrial chemicals and
automotive lubricants. In recent years world demand for molybdenum has been
growing at about 3% p.a. and was estimated at around 127,000 tonnes in 2003.
Western Europe, the USA and Japan are the three largest molybdenum-consuming
regions.
The price per pound of molybdenum oxide has increased from US$5.60 in July 2003
to US$17.825 today.
Enquiries to:
GALAHAD GOLD PLC
Alastair KingTel: 020 7408 2002
REDLEAF COMMUNICATIONS
Emma Kane/James WhiteTel: 020 7955 1410
SEYMOUR PIERCE
Mark Percy/Jeremy Porter Tel: 020 7107 8000
Notes to Editors:
Malmbjerg is pronounced "Malum-b-yerg". The literal translation is 'Ore
Mountain'.
The gross contained value of the Malmbjerg deposit at US$17.825/lb of molybdenum
oxide is estimated at US$10.9bn.
MoS2 is Molybdenum Disulphide and WO3 is Tungsten Trioxide.
Galahad Gold plc is an international mining development company quoted on the
AIM Market of the London Stock Exchange under the symbol GLA.
Galahad currently has two projects:
Skaergaard: A 100% shareholding in Skaergaard Minerals Corporation which owns
the Skaergaard project in Eastern Greenland. Skaergaard is a large
gold-palladium-platinum project with Inferred Mineral Resources of 10.9m ounces
of gold, 35.1m ounces of palladium and 3.0m ounces of platinum, in addition to
substantial quantities of accessory metals and minerals (including copper,
titanium dioxide, gallium and vanadium).
Northern Dynasty: A 32.7% shareholding (34.8% on a fully diluted basis) in
Northern Dynasty Minerals Limited (a company quoted on the TSX Venture Exchange,
Toronto under the symbol NDM) which has the right to acquire 100% of the Pebble
project in Alaska, USA. The Pebble project is a major
copper-gold-molybdenum-silver porphyry deposit. Galahad's pro rata share of the
metals contained in the Inferred Mineral Resources at Pebble is 9.22m ounces of
gold; 5.74bn pounds of copper and 313m pounds of molybdenum.
Galahad currently has over 46m ounces of precious metals on a precious metals
gold equivalent basis (100% of the precious metals at Skaergaard and Galahad's
pro rata share of the precious metals at the Pebble deposit, all expressed in
terms of the gold price). Galahad also aims to acquire resources of associated
metals and minerals such as copper and molybdenum in view of their increasing
importance to the world economy.
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
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