Gossan Resources Limited
FRANKFURT : GSR
TSX VENTURE : GSS

Gossan Resources Limited

August 08, 2005 15:26 ET

Drill Results From Gossan's Bird River Property

WINNIPEG, MANITOBA--(CCNMatthews - Aug. 8, 2005) - Gossan Resources Limited (TSX VENTURE:GSS)(Frankfurt/Freiverkehr:GSR) announces that it has received from Lac des Iles Mines Ltd. "LDI", a wholly owned subsidiary of North American Palladium Ltd., the results from the recently completed diamond drill program on the Bird River Property in southeastern Manitoba. The drill program consisted of eight (8) holes, BR-05-01 to 08 (hole BR-05-03a had to be abandoned in overburden) totaling 967.7 meters. Drilling tested seven (7) of the airborne electromagnetic conductors, identified from the Airborne VTEM Survey flown earlier this year by LDI, along the inferred base of the Bird River Sill. Four of the eight holes encountered significant sulphide mineralization highlighted by hole BR-05-02 that intersected 13.75 meters of 1.077% nickel and 0.501% copper including 4.75 meters grading 2.143% nickel and 0.440% copper.



TABLE 1 Drill Hole Collar Location


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Hole No. Easting Northing Azimuth Dip Depth
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BR-05-01 321721 5595909 360 -50 64.9
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BR-05-02 321633 5595903 360 -50 80.77
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BR-05-03a 322221 5595908 180 -45 33.53
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BR-05-03 322221 5595908 180 -60 190.2
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BR-05-04 315819 5591592 360 -56 160
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BR-05-05 317064 5592060 360 -55 180.8
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BR-05-06 320095 5595467 360 -50 91.4
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BR-05-07 319603 5595680 360 -50 70.1
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BR-05-08 321633 5595903 20 -65 96
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967.7 m


Four of the drill holes (BR-05-01, 02, 03 and 08) were collared in the northwest corner of the Bird River Property on the Page Block previously tested by Hudson Bay Mining and Smelting Co., Ltd. in 1954. In 2001, Manitoba Industry, Trade and Mines conducted a re-assaying program at the Page that identified a 4.6 metre section of drill core grading 1.43% nickel, 1.38% copper and 1.6 gpt palladium (additional information is available at www.gossan.ca/en/projects/birdriver.php). Mineralization at the Page Block consists of disseminated, blebby and locally net textured sulphides (pyrrhotite, chalcopyrite +/- pyrite) along the base of the Bird River Sill and underlying mafic volcanics.



TABLE 2 Significant Intersections


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(metres) %
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Hole
No. From To Interval Nickel Copper Cobalt
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BR-05-01 9.35 28.36 19.01 0.274 0.115 0.013
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and 43.83 51.10 7.27 0.536 0.162 0.029
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Incl. 45.40 46.40 1.00 2.055 0.113 0.097
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BR-05-02 47.65 61.40 13.75 1.077 0.501 0.047
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incl. 53.25 58.00 4.75 2.143 0.440 0.088
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BR-05-07 7.03 8.03 1.00 0.654 0.306 0.026
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BR-05-08 58.46 59.86 1.40 0.366 0.297 0.017
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And 65.16 70.16 5.00 0.511 0.214 0.019
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(metres) (grams per tonne)
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Hole
No. From To Interval Gold Platinum Palladium
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BR-05-01 9.35 28.36 19.01 0.014 0.052 0.213
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and 43.83 51.10 7.27 0.018 0.102 0.490
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Incl. 45.40 46.40 1.00 0.04 0.138 1.892
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BR-05-02 47.65 61.40 13.75 0.030 0.267 0.726
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incl. 53.25 58.00 4.75 0.019 0.395 1.108
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BR-05-07 7.03 8.03 1.00 0.101 0.138 0.627
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BR-05-08 58.46 59.86 1.40 0.027 0.116 0.443
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And 65.16 70.16 5.00 0.022 0.117 0.397
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Drill core was logged and split on site with split samples shipped to Accurassay Laboratories, an accredited laboratory, in Thunder Bay for analysis. The precious metals were analyzed utilizing a standard fire assay with atomic absorption finish and the base metals were analyzed utilizing an aqua-regia digestion and atomic absorption finish. Check assays were completed and were confirmatory. Bruce W. Mackie, Vice President - Exploration of North American Palladium Ltd. is LDI's Qualified Person supervising the work being carried out on the Bird River Property.

The Property, encompassing 6,870 hectares (16,975 acres), covers over 21 kilometres of the Bird River Sill Complex. Locally, about 500 to 600 meters thick, the Bird River Sill is a differentiated gabbroic complex, which trends east-west, dips steeply to the south and is subdivided into a basal ultramafic, a transitional and an upper mafic series. This complex carries significant concentrations of palladium and platinum along with nickel, copper, zinc and chromite. The Bird River Property is located about 40 km east of Lac Du Bonnet, Manitoba and, along the Sill, approximately 6 km west of Mustang Minerals' Maskwa Deposit.

North American Palladium Ltd. (PDL-TSX & PAL-Amex) is Canada's only primary producer of palladium and is the owner/operator of the Lac des Iles Mine located northwest of Thunder Bay, Ontario. Under the terms of an Option and Joint Venture Agreement, LDI can earn an undivided 50% interest in the Bird River Property by spending $2.5 million on exploration and making cash payments of $400,000 to Gossan by August 30, 2008. Thereafter, LDI can earn a further 15% interest by completing a bankable feasibility study and an additional 10% interest, to a total 75% interest, by arranging project financing. Under the terms of the Agreement, LDI must incur $400,000 of exploration expenditures and make a second cash payment of $50,000 by August 30, 2005.

Gossan Resources Limited is engaged in mineral exploration in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty metals, tantalum, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite and a silica sand prospect. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 17,418,124 shares outstanding (21,098,124 shares fully diluted).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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