SOURCE: GLR Resources

October 25, 2007 09:47 ET

GLR Orders Milling Plant for Goldfields

KIRKLAND LAKE, ON--(Marketwire - October 25, 2007) - GLR Resources ("GLR") (TSX: GRS) (FRANKFURT: GKF) is pleased to report that contracts have now been entered into with major equipment suppliers for mining and milling equipment. Down-payments have been made on those items requiring a long lead time so that manufacture of these items can commence. This will allow for delivery of these items so that GLR can adhere to its timetable of production in early 2009.

The EIS (Environmental Impact Study) originally submitted in February 2007 to Saskatchewan environmental authorities has now been updated to reflect the economic changes as defined in GLR's 43-101 Technical Report (i.e. 5000 tpd mining operation instead of a 2000 tpd operation). Saskatchewan environmental authorities have indicated that the review of these changes should be a relatively short process (~ 30 days) and public review should commence before year end.

In a Press Release dated August 21st, it was noted that Investec Bank had retained Micon Engineering to complete a due diligence review of the Goldfields feasibility study. The final comments from Micon Engineering have now been received by Investec Bank. Although some minor points are still to be addressed it is of the opinion of GLR there are no issues that will seriously affect the Goldfields project or its ability to pay back debt financing.

Brush and tree removal along the power line right-of-way, that extends more than 12.5 km between the Box deposit and the Uranium City power grid, has been progressing well and will be completed by month end. This accomplishment represents more than 3 months of work by a dedicated team of ten people.

Renovation efforts also continue to progress well at the GLR building facility in Uranium City that will function as office space as well as dormitory quarters for future mine employees. The last shipment of furniture and materials has now been received and it is expected that this building facility will be completed by year end.

Three deep drill holes (BO7-291, BO-292 and BO7-293) have been completed and a fourth hole (BO7-294) is in progress. The core samples from these three holes were submitted for gold assays to TSL of Saskatoon and assay results are pending. These holes were drilled on the south side of the Box deposit to evaluate any extensions of the gold-bearing granitic formation associated with the Box deposit.

GLR has also completed 5 condemnation holes in the area selected for the Box Mine processing mill, road access to the mill as well as in the area selected for the location of the future waste rock pile. Assay results only yielded slightly anomalous gold values. Therefore, the areas selected for future roads, the mill building site and the waste rock site do not overlay areas of economic mineralization.

Commenting on the above progress, CEO and President Robert Kasner noted, "It is very reassuring to see GLR proceeding on schedule for production in early 2009 and it is reassuring that there are no serious issues with the Goldfields feasibility study." Kasner also noted, " I am very pleased with the response received from Resource Funds and Investment Dealers while on a recent visit to the U.K. and Europe."

About GLR Resources

GLR is a Canadian based junior mining and exploration company focusing on projects in North America and with existing projects in Ontario, Quebec and Saskatchewan. GLR's most advanced project is its Goldfields Project, located near Uranium City in northern Saskatchewan. The Goldfields project consists of two open-pitable Gold deposits -- The Box and The Athona -- containing a resource in excess of one million ounces Gold. GLR is focused on bringing the Goldfields project into production in late 2008. GLR trades on the TSX under the symbol GRS.

Forward-Looking Statements: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond GLR's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although GLR believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

Contact Information

  • Contact Information
    Robert Kasner
    President & CEO
    T: 1.705.567.5351
    E: Email Contact

    Malcolm Bucholtz
    V.P. Investor Relations
    E: Email Contact

    John Orr, P.Eng.
    E: Email Contact

    P.O.Box 546, 4 Al Wende Avenue,
    Kirkland Lake, Ontario P2N 3J5
    Tel: (705) 567-5351
    Fax: (705) 567-5557
    e-mail: Email Contact

    Saskatoon Office:
    515-45th St. West,
    Saskatoon, Saskatchewan,
    S7L 5X5 (306) 652-0582