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Business and Finance
Business and Finance
Thu, January 22, 2009 Galahad Metals Inc.: 2.72 oz Au/t, 31.4 oz Ag/t @ GALAHAD's New Kellyn Gold Prospect, Terrace Bay Area, Ontario
OTTAWA, ONTARIO--(Marketwire - Jan. 22, 2009) - Galahad Metals Inc (TSX VENTURE:GAX) announces that it has optioned the Kellyn property (nine claims; 56 claim units) from two local prospectors (the "Optionors") in the Thunder Bay area. The highly prospective Kellyn property is comprised of a gold and base metal vein system that occurs along the contact between ultramafic rocks and a granitoid body. Historic data indicate that up to 2.72 oz/ton gold and 31.4 oz/ton silver were found on the property. One sample collected by Galahad Metals contains 26.8 g/t (0.84 oz/tonne) gold and two contain from 3 to 13 oz/tonne silver. Preliminary sampling (Table 1) confirms the gold-rich content of the vein system.
The data in Table 1 are from widely spaced samples; systematic sampling will follow. Several features are noteworthy based on these data:
- The host rock appears to be alkaline, a common parentage for magmatic gold deposits. It is exceptionally enriched in the rare earth elements, represented by lanthanum (La), and cerium (Ce), and also in other immobile elements (zirconium, (Zr), niobium (Nb) and yttrium (Y)). This indicates that the alkaline system is strongly fractionated, a common feature of some porphyry and epithermal gold deposits.
- Two samples are enriched in tellurium (Te), another indicator of a magmatic origin of the veins. This is similar to the vein systems at Kirkland Lake.
- One sample (C351449) contains elevated molybdenum (Mo) content, also compatible with a magmatic system.
- The combination of gold and silver is typical of an epithermal or porphyry-style of mineralization, in contrast to the gold-only nature of most mesothermal vein systems that are more typical of the Canadian Shield.
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SAMPLE X UTM Y UTM Note Ag Au Ce Cs
NAD83 NAD83 g/t g/t ppm ppm
Z16 Z16
------------------------------------------------------------------------
C351447 504269 5410928 Alkaline host 6 0.01 550(i) 87(i)
rock
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C351448 504662 5411109 Au-Te-Pb-Cu 100 26.8 7 3
------------------------------------------------------------------------
C351449 504817 5410823 Moly-rich vein 9 0.2 42 4
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C351450 504794 5410808 Ag-Bi-Pb-Se-Te 431 0.67 73 0
------------------------------------------------------------------------
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SAMPLE X UTM Y UTM Cu La Mo Nb
NAD83 NAD83 ppm ppm ppm ppm
Z16 Z16
-------------------------------------------------------
C351447 504269 5410928 653 225(i) 2 168(i)
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C351448 504662 5411109 17850
(1.79%) 3.4 1 0.7
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C351449 504817 5410823 93.5 18.8 71 2.9
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C351450 504794 5410808 3970 34.2 2 0.5
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------------------------------------------------------------------------
SAMPLE Ni P Pb Sb Sr Te Y Zn Zr
ppm ppm ppm S % ppm ppm ppm ppm ppm ppm
------------------------------------------------------------------------
C351447 125 3710 432(i) 6.43 0 248 2 120(i) 368 1020(i)
------------------------------------------------------------------------
C351448 154 50 73000 6.79 6 311 83 7 6670 9
(7.3%)
------------------------------------------------------------------------
C351449 55 940 302 2.52 0 401 2 12 57 72
------------------------------------------------------------------------
C351450 23.2 340 11300 1.84 0 121 63 9 43 3
(1.13%)
------------------------------------------------------------------------
Table 1: Data for four samples from the Kellyn property. Sample C351447
represents the granitic host rock. The others are from various vein
systems on the property. All analyses completed by ALS-Chemex using
their ME-MS61 except those noted with an "(i)" which are analyzed by ME-
MS81.
------------------------------------------------------------------------
In addition the occurrence of many of the veins at the contact
between ultramafic and granitoid rocks indicates that the vein system
formed in a 1.5 km -long zone of high ductility contrast. This provides
a specific target for the Galahad exploration team to follow. Line
cutting and geophysical surveys will be completed in February, with
drilling to follow.
Under the terms of the agreement, GAX is required to pay to the Optionors, subject to the approval of the TSX-V, $6,000 and 100,000 shares of GAX upon signing and on the first, second and third anniversaries. The property is subject to a 2% NSR payable to the Optionors, of which half can be purchased for $1,000,000.
In addition to the new Kellyn Project Galahad has two active gold projects; the Montrose gold property near Matachewan, Ontario, where the Company is currently concluding an IP survey, and the very prospective Bottle Creek gold-silver project in Nevada.
Dr. J. M. Franklin, P. Geo, FRSC, is a Qualified Person as defined by National Instrument 43-101.
"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."
