Galahad Metals Inc.

Galahad Metals Inc.

October 26, 2009 10:54 ET

Kellyn Gold/REE Summer Results Surprise Galahad, Two Targets Now Drill Ready

OTTAWA, ONTARIO--(Marketwire - Oct. 26, 2009) - Galahad Metals Inc.("GAX or the Company") (TSX VENTURE:GAX) announces completion of a summer program of geochemical sampling, prospecting, stripping and channel sampling at its Kellyn Project. Based on an analysis of soil and rock geochemical samples five distinct zones of interest were outlined, some of which require further sampling and two are drill ready.

Initial grab sampling by the Company prior to optioning the claims assayed 26.8 g/t (0.84 oz/tonne) gold from the newly discovered Creek showing. Other known occurrences on the claims occurring along a contact between ultramafic and granitoid rocks included the Elgin Adit Showing (historical assays of 22g/t gold and 62.5 g/t silver) and Jon's Showing (historical assays of 11 g/t gold and 968 g/t silver).

Additional sampling in 2009 at the Creek Showing confirmed the high grade nature of this narrow quartz vein, assaying 24.7 g/t gold, 40 g/t silver. The silver potential of the Jon's showing was highlighted with assays from 4 - 454 g/t silver and anomalous gold from 0.14 - 1.21 g/t. Both gold and silver are associated with telluride minerals as well as anomalous base metals. These two prospects are drill-ready.

In addition to precious metals, sampling of various rock types at the Adit area were found to be enriched in rare earth elements as previously reported by the Company. Eight rock samples from a stripping area above the adit ranged from 0.23 to 1.92 % total REE; three samples were in excess of 1% total rare earths. Host rocks are varied, and include quartz veins, alkaline gabbro and altered volcanic rocks,. In addition most are barium-enriched, a Hemlo-like signature. Geologically the REE-enriched zone occurs in a highly strained zone of gabbroic rocks near the contact with the Terrace Bay batholith. The REE's in the Adit area are light-REE enriched. Additional prospecting is required as the number of samples is relatively small.

A limited program of diamond drilling is recommended for the Creek and Jon's showing.

The Kellyn claims are located 60 km west of Marathon, Ontario, the site of the Hemlo Gold Mines(JMF1). The claims are optioned from two prospectors from the Terrace Bay area. Under the terms of the agreement, GAX paid $6,000 to the Optionors and issued 100,000 shares upon signing and has further payments and share issuances 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.

Paul Pitman, P. Geo, 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."

Contact Information