Galliard Resources Corp.

April 06, 2011 09:16 ET

Galliard Signs Letter Agreement to Earn a 70% Interest in the Beatons Creek Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2011) - Galliard Resources Corp. ("Galliard" or the "Company") (CNSX:GRS) is pleased to announce that it has entered into a binding letter agreement (the "Agreement") with Millennium Minerals Ltd. (ASX:MOY) ("Millennium") that provides Galliard with the exclusive right to earn a 70% interest (as to gold and minerals associated with and normally mined with gold) in the tenements comprising Mining Leases 46/9, 46/10 and 46/11 covering the Beatons Creek conglomerates located in Western Australia (the "Beatons Creek Tenements"). 

About the Beatons Creek Gold Project

The Beatons Creek Tenements cover extensive exposures of the Beatons Creek conglomerates, a series of Archaean age pyritic conglomerates hosting gold mineralization similar to that of the Witwatersrand Basin in the Republic of South Africa. Shallow gold reefs were first identified and mined in this area beginning in the late 1800's. 

Beatons Creek has seen little modern exploration, but a few short RAB holes drilled in 2007 by Wedgetail Mining Limited encountered intercepts of pyritic conglomerates including 2 metres at 116 grams per tonne gold and 12 metres at 7.27 grams per tonne gold (announced in a press release by Wedgetail Mining Limited on July 27, 2007). Galliard believes that these results indicate that potentially economic gold-bearing reefs underlie more of the property and are planning an aggressive drill program in 2011 to test this concept. 

Galliard has signed a memorandum of understanding with the Creasy Group (announced in a press release issued by Galliard on February 8, 2011) to acquire a 70% interest in adjoining grounds (the "Creasy Lands") where these reefs are believe to extend. Galliard's acquisition of a 70% interest in the Beatons Creek Tenements coupled with the acquisition, subject to CNSX approval, of a 70% interest in the Creasy Lands will give Galliard the opportunity to explore for what it believes could be a very significant gold reef system. 

"We are very excited to combine the Beatons Creek Tenements with Creasy Group's extensive tenement package," stated Quinton Hennigh, a Director of Galliard, "Our view is that the high-grade gold-bearing reefs outcropping at Beatons Creek extend under the broader region at Nullagine. We intend to demonstrate this with an aggressive drilling campaign beginning in mid-2011. The Beatons Creek Tenements will be subject to the first round of drilling and are key to building a comprehensive exploration plan for this type of target." 

"We are also excited to see Millennium proceed with development of their Nullagine Gold Project which includes construction of a 5,000 tonne per day CIL plant," continued Hennigh. "This development will awaken the Nullagine gold camp and provide vital infrastructure for future mining in the area." The Beatons Creek Tenements are not integral to Millennium's Nullagine Gold Project.

Terms of the Farm-in

In order to earn a 70% interest in the Beatons Creek Tenements, Galliard must issue to Millennium such number of common shares of Galliard having a value of AUD$500,000 (as determined in accordance with the Agreement), incur expenditures on the Beatons Creek Tenements of not less than AUD$1,000,000 by the second anniversary of the Effective Date (as defined in the Agreement), including not less than AUD$500,000 by the first anniversary of the Effective Date, and procuring (at its cost) a bankable feasibility study in respect of the gold rights before the fifth anniversary of the Effective Date. Galliard will solely fund all expenditures on the Beatons Creek Tenements required under the Mining Act 1978 (Western Australia) in relation to gold rights, and Millennium will not be required to fund any such expenditures on the Beatons Creek Tenements during the farm-in period. Millennium will bear costs associated with exploring for and recovering minerals other than gold.

About Galliard Resources Corp.

Galliard's focus is to evaluate, acquire and explore natural resource properties. The Company presently holds an option to acquire an undivided 100% interest in an exploration property situated in south-central British Columbia, namely the Enterprise Property and is currently involved in various exploration projects in Western Australia.

Dr. Quinton Hennigh, a Qualified Person as defined by National Instrument 43-101, has reviewed the technical contents of this news release.

Galliard Resources Corp.

Quinton Hennigh, Director

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Galliard Resources Corp. does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Galliard Resources Corp. to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

The Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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