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International Molybdenum plc

RNS Number:2666H
Galahad Gold Plc
12 January 2005
                          GALAHAD GOLD PLC ("Galahad")
            NORTHERN DYNASTY MINERALS AND HOMER ELECTRIC LAUNCH JOINT
                     POWER INVESTIGATION FOR PEBBLE PROJECT
Galahad confirms that Northern Dynasty Minerals Limited (TSX Venture: NDM; AMEX:
NAK), in which Galahad holds 34.1% (33.0% fully diluted), has announced a joint
initiative with Homer Electric Association to undertake a detailed feasibility
study of a phased power plan for the Pebble gold-copper-molybdenum deposit in
Alaska (the "Pebble Project"). The news release from NDM is set out in full
below.
Commenting on this announcement, Ian Watson, Chairman of Galahad Gold plc said:
"The feasibility study on the power supply of the Pebble Project jointly with
Homer Electric, will be an important consideration in the development of
Pebble's Bankable Feasibility Study."
NDM has also stated that continuing studies indicate that the Pebble resource is
large enough to potentially utilize the largest, most cost effective and
efficient market proven grinding equipment. Consequently, planning for an
ultimate production rate of up to 200,000 tonnes per day (70 million tonnes per
year) is underway.
Enquiries to:
GALAHAD GOLD PLC
Ian Watson/Angelos Damaskos Tel: 020 7408 2002
PARKGREEN COMMUNICATIONS
Simon Robinson/Justine Howarth Tel: 020 7493 3713
SEYMOUR PIERCE
Mark Percy/Jeremy Porter Tel: 020 7107 8000
Notes to Editors:
Galahad Gold plc is an international mining development company quoted on the
AIM Market of the London Stock Exchange under the symbol GLA. It has three
current projects, all in politically safe locations:
      * 34.1% (33.0% fully diluted) of Northern Dynasty Minerals Limited the
        owner of the Pebble project in Alaska which contains the largest gold
        deposit in North America and the second largest copper deposit;
      * 100% of Skaergaard in Greenland, one of the largest palladium
        deposits outside South Africa and Russia; and
      * 100% of Malmbjerg in Greenland, one of the largest primary molybdenum
        deposits in the world.
Galahad's attributable Inferred Mineral Resources:-
      * 20.12m ounces of gold;
      * 3m ounces of platinum;
      * 35.1m ounces of palladium;
      * 8.74bn lbs of copper; and
      * 313.2m lbs of molybdenum
These figures exclude Malmbjerg's molybdenum and the extensive vanadium and
titanium deposits in Skaergaard.
Further information on Galahad may be found at www.galahadgold.com
The announcement below was released by Northern Dynasty Minerals Limited 
("NDM"). Galahad Gold PLC has not sought to verify any of the contents of the 
press release below.
NORTHERN DYNASTY MINERALS LTD : News Release
Tue Jan 11, 2005
Northern Dynasty And Homer Electric Launch Joint Power Review For The Pebble
Project
Brad Janorschke, General Manager of Homer Electric Association ("HEA"), and
Bruce Jenkins, Chief Operating Officer for Northern Dynasty Mines Inc., a wholly
owned subsidiary of Northern Dynasty Minerals Ltd. (AMEX:NAK; TSXV:NDM), are
pleased to announce a joint initiative to review the feasibility of a phased
power development plan for the Pebble gold-copper-molybdenum deposit, located in
southwestern Alaska, USA. The Pebble Project is currently the focus of a
comprehensive program of drilling, engineering and environmental/socioeconomic
work designed to complete an overall feasibility study and environmental permit
applications in 2005 in anticipation of a large-scale open pit mining operation.
HEA and NDM have agreed to jointly assess the technical, economic, and
environmental feasibility of a phased development approach to ensure the timely
delivery of electrical power to construct and operate a mine at Pebble. A phased
approach contemplates the efficient start up of a mine, and the possibility of a
subsequent production ramp up to a milling rate in the order of 200,000 tonnes
per day. The results of this joint review will contribute to the feasibility
study of the Pebble Project, which is targeted for completion later this year.
HEA is one of the six prime electric Cooperatives, or utilities, that service
the Alaskan Railbelt transmission grid. This grid includes Anchorage, Fairbanks,
Matanuska--Susitna, and the Kenai Peninsula and services about 75% of Alaska's
population which consumes over 85% of the State's electrical power. HEA is a
member-owned electric Cooperative that serves Alaska's western Kenai Peninsula.
Its beginnings date back to 1945 when residents in Homer, Alaska came together
for the purpose of starting a local electric Cooperative. In 1950, the system
was energized, bringing electricity to 56 members. Today, the Cooperative
consists of approximately 20,000 members and provides electricity to about
28,000 meters in its service area. The Cooperative supplies power to a mix of
heavy industry (an oil refinery, oil and gas fields in Cook Inlet, a liquid
natural gas production plant and a nitrogen products plant), towns, rural areas
and remote villages over a territory of 3,166 square miles.
The power development plan which is being reviewed for the Pebble Project
consists of two stages. Stage One would connect the mine to the Railbelt
electrical grid, via either 210 miles of overland transmission line, or
alternatively, 45 miles of submarine cable across Cook Inlet, followed by
approximately 70 miles of overland transmission line to the Pebble property. En
route, local villages and other consumers in proximity to the project area could
likely also be connected to the new extension. During 2005, HEA and NDM plan to
expand their discussions with local communities to determine the best approach
for optimizing the supply of power to Pebble and its neighbours in the region.
It is anticipated that HEA will position itself to provide approximately 100
megawatts of power to start-up the project. Project start-up remains subject to
completion of the overall feasibility study, permitting, financing and detailed
engineering. Stage Two would involve construction of additional generation
facilities by HEA using the best available technology. The generation capacity
would be optimized to the needs of HEA's members, including NDM, as well as to
allow for the future growth of HEA and the remainder of the Railbelt.
Under this new NDM/HEA initiative, the timeline for the provision of power is
consistent with engineering, permitting and construction efficiencies. This
timeline should also facilitate a very effective sequence for the potential mine
development. Three mining rates were described in an independent Preliminary
Assessment of the Pebble Project which was announced in November 2004: 100,000
tpd, 100,000 tpd ramping up to 200,000 tpd in year 6, and 200,000 tpd.
Continuing studies indicate that the Pebble resource is large enough to
potentially utilize the largest, most cost effective and efficient grinding
equipment currently available. Consequently, one of the prime alternatives under
investigation is an ultimate production rate of up to 200,000 tonnes per day (70
million tonnes per year).
A staged build-up of power availability and mine production could have numerous
benefits. On the power side, there would be time to optimize technical details
and economic benefits and plan for growth on the entire Railbelt system.
Benefits would accrue through the ability to plan for grid expansions and
additional power generation in a cost effective manner that accommodates
existing consumers as well as growing demand from new consumers. The end result
could be a more stable, efficient system with lower cost electricity available
to all Railbelt customers.
For further information regarding this release contact:
Joe Gallagher HEA (907) 283 2324 (Public Relations Coordinator)
Bruce Jenkins NDM (604) 684 6365 (Chief Operating Officer)
ENDS
                      This information is provided by RNS
            The company news service from the London Stock Exchange
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