Glamis Gold Ltd.

Glamis Gold Ltd.

September 26, 2005 17:00 ET

Glamis Announces Marlin Start-Up; Higher 2005 Production Expected-Cerro Blanco Project Updated

RENO, NEVADA--(CCNMatthews - Sept. 26, 2005) - All amounts in US$

Glamis Gold Ltd. (TSX:GLG)(NYSE:GLG) today announced the start-up of its Marlin mine in Guatemala, capping a nearly flawless 18-month construction period. Mill commissioning will continue through mid-October, with commercial production expected to commence by November 1, 2005. The capital cost of construction at Marlin has not been finalized, but is projected to total less than $150 million. In 2006, Marlin mine is expected to produce approximately 250,000 ounces of gold and over 3.5 million ounces of silver.

Glamis President and Chief Executive Officer Kevin McArthur noted, "Glamis is pleased to participate in Guatemala's economic growth by constructing and operating the country's first modern gold and silver mine. The Guatemala team deserves high accolades, as it has steered Marlin project through the difficult course of feasibility, permitting and construction, while maintaining the highest safety and environmental standards. In partnership with surrounding communities, the International Finance Corporation and the Guatemalan government, Glamis expects to contribute to the social and economic well-being of local communities and Guatemala for many years."

2005 Production Forecast Increased

Because of the early start, expected 2005 production at Marlin has been revised upward from 10,000 ounces of gold to between 25,000 and 35,000 ounces. This results in a commensurate increase to the Company's overall production goal of 400,000 ounces for the year. Glamis is now projecting 2005 production to be between 425,000 and 435,000 ounces of gold. Earlier, Glamis had forecast total cash costs of $185 per ounce of gold for the year. If recent high energy costs and other inflationary factors persist through the year, this total is expected to be between $190 and $200 per ounce.

The start-up at Marlin comes only ten months after the commencement of production at the Company's El Sauzal mine in Mexico. Gold production at each of Glamis' mines remains on schedule to reach targets for 2005.

Cerro Blanco Project Updated

Glamis currently has fifteen exploration drill rigs operating on six promising projects in the Americas. Of particular note, drilling at Cerro Blanco project in southeastern Guatemala has confirmed the discovery of a new mineralized zone immediately north of the original resource (873,000 ounces gold at 22.0 grams Au per tonne; see News Release dated February 10, 2005).

Since the beginning of the year a total of 11,400 meters of drilling has been completed at Cerro Blanco in the new North Zone. Assays for 34 holes have been received to date, yielding results similar to those incorporated in the original resource. Over 40% of the 2005 drill holes in the North Zone contain intercepts that exceed a grade x true thickness value of 20 gram-meters, as summarized below.

Cerro Blanco Project

2005 North Zone Drilling Highlights - September 26, 2005

Intercepts with gold grade X estimated true thickness
exceeding 20 gram-meters

From To Est True Gold Silver
Drill Hole (meters) (meters) Width Width (g/t) (g/t)
---------- ------- ------- ----- -------- ---- ------
CB-142 163.5 171.5 8.0 4.0 16.3 72
and 196.2 204.5 8.3 4.2 18.8 12
and 302.8 304.0 1.2 0.6 52.0 37
CB-143 152.3 154.1 1.8 1.3 17.7 54
CB-144 192.0 194.0 2.0 1.0 23.0 8
CB-146 80.3 159.0 78.7 65.0 13.4 65
incl. 80.3 85.0 4.7 3.9 16.3 236
incl. 110.7 112.4 1.7 1.5 18.6 131
incl. 118.9 130.0 11.1 9.4 70.4 226
incl. 139.0 141.4 2.4 2.0 20.2 46
incl. 157.0 159.0 2.0 1.7 29.5 39
CB-151 162.4 164.5 2.1 1.2 37.9 221
and 172.9 179.3 6.4 3.2 13.6 25
CB-152 105.0 169.2 64.2 58.0 10.1 50
incl. 105.0 111.0 6.0 5.4 31.5 143
incl. 128.0 132.0 4.0 3.6 14.0 147
incl. 143.8 148.5 4.7 4.2 12.8 109
incl. 154.6 157.3 2.7 2.4 96.3 223
incl. 166.5 169.2 2.7 2.4 9.5 20
CB-155 247.0 248.5 1.5 0.5 180.7 130
CB-156 195.5 196.5 1.0 0.6 376.0 2,406
and 236.5 238.8 2.3 1.2 27.8 16
CB-158 310.5 312.0 1.5 1.4 27.2 15
CB-162 169.5 171.0 1.5 1.4 27.1 13
CB-164 79.7 85.4 5.7 5.2 9.4 340
and 108.2 109.3 1.1 1.0 82.2 516
and 165.0 166.5 1.5 1.4 16.8 13
CB-170 194.0 203.0 9.0 8.5 15.1 19
CB-171 214.3 217.8 3.5 3.0 15.6 15
CB-174 151.5 156.0 4.5 1.5 56.5 187

The entire database and a drillhole location map are available at the Company's website,

Early testing confirms this new discovery is metallurgically similar to the original south resource, characterized as quartz veins with free gold and electrum. Metallurgical recoveries exceed 90% at a nominal 200 mesh grind utilizing conventional milling techniques.

Drilling continues at Cerro Blanco, with five rigs at the project site. The deposit has now been defined over a strike length of approximately one kilometer. Reconnaissance drilling, mapping and corresponding geochemical evidence suggest the gold system continues for an additional distance of 1.5 kilometers to the north before disappearing beneath a post-mineral volcanic flow and for an unknown distance to the south beneath valley fill. For the remainder of the year exploration will concentrate on delineation drilling and further discovery work along the north and south ends of the deposit.

An updated mineral resource for Cerro Blanco is expected to be completed by early December. This new information will be compiled into a mine feasibility study with a target completion date of late 2006.

Kevin McArthur will present an update of the Company's activities on September 27, 2005 at the Denver Gold Forum in Denver, Colorado. His presentation can be accessed by clicking on the "What's New?" link on the Glamis website.

Glamis Gold Ltd. is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from over 400,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged.

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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