April 04, 2006 08:00 ET

Golconda Resources Ltd.: Drilling Update and Acquisition of New Property

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) -

Shulin Lake - Alaska - GA - 51%

The joint venture drilled four holes during the winter season in search for the diatreme which is the origin of indicator minerals and microdiamonds found in earlier surface and drill samples.

Two holes went through 200 ft. of volcanic ash into underlying sandstone. The third hole caved in at 313 ft. depth being still an unconsolidated sand, gravel and boulders. A layer of welded tuff within this unusual sequence (a rock type which has never been encountered before) indicates the close proximity to the source of the volcanic rock. Hole four caved in at 200 ft. depth.

Samples from the volcanics in Hole No. 3 will be tested for diamonds and indicator minerals.

Wapawekka - Saskatchewan - Massive Sulphides - GA - 51%

Two holes were drilled from the ice on Wapawekka Lake to test airborne electromagnetic anomalies. Hole WWL-1 was drilled to a depth of 1210 ft (369m) and intersected a "layered gabbro complex". The anomaly was caused by overlying clayish lake sediments.

In the summer of 2005, drilling intercepted a narrow zone of massive sulphides with low copper-zinc values at the beginning of an electromagnetic anomaly. The highest part of the anomaly occurs about 1 km. inside of Wapawekka Lake. Hole WWL-2 positioned to test this part, reached a depth of 703 feet (215m) when the drilling machine had to be moved off the ice due to deteriorating weather conditions.

The hole intersected the same metavolcanic sequence, which had been intersected last summer, but had to be abandoned before the massive sulphide horizon could be reached. The anomalies will have to be tested at a later stage.

4 Aces - Nevada - Lead, Zinc, Silver

Golconda Resources Ltd. entered into an option agreement with a private party to earn a 60% interest in a lead, zinc, silver prospect in Esmeralda County, Nevada, by occurring exploration expenditures of US $500,000 over 5 years and making property payments of US $10,000 annually. Golconda can increase it's interest to 80% by producing a bankable feasibility study.

Lead, zinc, and silver mineralization occurs in a 100-200m (300 to 600 ft.) thick limestone band which is sandwiched within a granite for a distance in excess of 2 km. (6500 ft.). The limestone band is inclined at 60o and the mineralization occurs in shoots within the footwall of the limestone.

The property has never been drilled, old workings do not go deeper than 200 ft. and only limited mining of high grade ore shoots has been carried out.

The vertical dimension of the limestone and the mineralization is unknown. When compared to the length of over 2 km. of the limestone band, it can be assumed that the depth is greater than the 60m (200 ft.) attained in the deepest workings.

Golconda believes that the largest potential of the property lies below the 200 ft. level given the fact that the mineralizing solutions came from the depth of the intruding granite. The strong increase in silver and zinc prices makes the exploration of this property very attractive.

A sampling program to establish the extent of surface mineralization will be guiding the planned drill program.

Golconda holds various interests in four other gold-silver prospects along in the Walker Lane trend in Nevada. All are in an advanced stage with gold-silver encountered in previous drillings and a major drill program scheduled for 2006.

On behalf of Golconda Resources Ltd.


Guenter J. Liedtke,President

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