Galahad Metals Inc.
TSX VENTURE : GAX

Galahad Metals Inc.

June 15, 2010 13:15 ET

Gold in Assay Results From Montrose Diamond Drilling

OTTAWA, ONTARIO--(Marketwire - June 15, 2010) - Galahad Metals Inc. (TSX VENTURE:GAX)("Galahad") an exploration company with a portfolio of properties in the prolific gold mining camps of Ontario, Quebec and Nevada, is pleased to announce that final gold assay results from its Montrose Gold Project (the "Property"), located south west of Kirkland Lake, have been received. A total of 731 samples from seven (7) diamond-drill holes were assayed for gold content.

The 2010 drill program was designed to target untested I.P. geophysical targets with co-incident surface geochemical (soil/humus) anomalies. One hole was dedicated to testing a high resistivity anomaly within the Main Zone where historical drilling intersected widespread, near-surface gold mineralization. Gold mineralization of note was encountered in holes M-010-07 and M-010-04, which were collared 200 metres apart, perpendicular to strike.

Best results from the drilling program are shown in the following Table:

Hole from (m) to (m) Au (g/t)   interval (m)
M-010-07 21.00 32.00 1.87 over 11.00
including 21.00 25.00 3.62 over 4.00
and 27.00 32.00 0.95 over 5.00
M-010-04 14.30 15.50 0.70 over 1.20

In hole M-010-06, faulting, sulphide mineralization and associated anomalous gold values were encountered between 92-98 m indicating that gold mineralization may extend along the Galer Fault zone, at least 700 m to the northwest.

Although high-grade values were not encountered in all of the drill holes, the telltale green carbonate alteration typical of the Kirkland Lake – Matachewan area gold deposits and newly recognized komatiite flows are consistent with local gold deposits.

Robin Dow, CEO Galahad Metals stated: "The results of this programme corroborate the high-grade gold results reported from historical drilling of the 5.25 ha "Main Zone", and indicate that the gold mineralization could continue over 700 m to the North West."

Previous exploration on and adjacent to the Property has identified a significant zone of shearing, alteration and mineralization. A zone several hundred metres wide is characterized by "carbonate altered green mica schists" and is associated with zones of silicification, quartz stringers and sulphides. Wide sections of gold mineralization were historically identified from trench-channel samples across the fault-zone (3.8 g/t gold over 13.6 metres and 6.2 g/t over 6 metres) and from historic drill hole intersections: 13.6 and 8.6 metres of 1.5 to 4.6 g/t gold; 10.6 g/t gold over 3.0 metres (1975 exploration), and; 3.57g/t over 2.74 metres (1998 exploration program). These results are historic and not NI 43-101 compliant and therefore cannot be relied upon.

With the Phase I drilling program completed, all of the current and available historical data is being validated, compiled and transcribed by MRB & Associates of Val-d'Or (Québec) into a Gemcom® database in order to create a 3D model of the deposit. The 3D modelling and drill-target generation will be completed in time for an anticipated Fall Q3 drilling program on the Property.

The 125.5 hectare Property comprises Mining Lease #107915, which in turn consists of nine (9) claims that straddle the Montrose-Bannockburn townships boundary, 18 km west of the town of Matachewan, Ontario. The Property is underlain by Abitibi Greenstone Belt rocks that include metamorphosed and altered, intermediate, mafic, and ultramafic (komatiite) flows, tuffs and breccias; and minor associated felsic volcanic rocks and clastic and chemical sedimentary rocks. Of major importance to gold exploration, the Property is transected by the Galer Lake Fault, a primary splay of the prolifically mineralized Larder Lake – Cadillac Break. Recent work by Galahad indicates that glacial cover over the fault zone conceals a zone of carbonate alteration and gold mineralization associated with the fault-trace.

The relationship between gold deposits and major shear-zones and fault structures (i.e., "breaks") in the Abitibi Greenstone Belt is well established. The two best known, the Porcupine-Destor Break and the Larder Lake–Cadillac Break, have accounted for over 65% of Canada's historic gold production, which equates to more than 140 million Au-ounces, worth about CAD $160 billion at CAD $1150 Au/oz.

John Langton, M.Sc., P.Geo, is the Qualified Person as defined by National Instrument 43-101 for this communication and has approved the contents of this release.

"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."

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