Palladon Ventures Ltd.

Palladon Ventures Ltd.

November 02, 2005 01:00 ET

Palladon Announces Gold Assay Results from Caldera Project, Nevada

SALT LAKE CITY, UTAH--(CCNMatthews - Nov. 2, 2005) - Palladon Ventures Ltd. (TSX VENTURE:PLL) today announced the results of rock chip sampling at its Caldera project located in west-central Nevada, in the vicinity of the producing Round Mountain mine and the past-producing Paradise Peak mine. It is one of the five Great Basin gold projects being explored by Palladon for gold potential, along with the gold projects being explored in Argentina. The geology of the Caldera property consists of a series of intermediate to felsic tuffs, locally cut by small felsic subvolcanic intrusives. The project area displays epithermal volcanic hosted mineralization with gold and silver hosted in veins, faults, silicified zones, breccia zones, and stockwork-mineralized areas. Previous work by other companies has returned encouraging results but identified no coherent mineralized zones. In previous data available to Palladon, surface rock chip sampling had returned values of up to 37 grams of gold (1.08 opt) and up to 847 grams of silver (24.7 opt) per ton. Highlights of prior drilling data include intercepts of 3 meters of 38 grams gold per ton (1.1 opt) and 7.6 meters of 8 grams per ton (0.243 opt) in separate drill holes. Neither of these intercepts has been significantly constrained by later drilling.

The field work to date by Palladon has focused on the western half of the project area and attempted to better define basic geology and controls on the previously identified mineralization through mapping and rock chip sampling with over 330 rock samples collected as part of this effort. The majority of these samples were selected to determine which veins, faults, or other structures control the epithermal mineralization. Exposures in most areas did not allow for continuous sampling to ascertain full widths of mineralized zones.

Assays and geologic observations returned very positive results. One hundred and five (105) of the samples contained potentially ore-grade values of greater than 0.34 grams gold per ton (0.01 opt). Four samples contained bonanza gold grades: 193. 5 grams (5.65 opt), 63 grams (1.84 opt), 58.3 grams (1.7 opt), and 48.9 grams (1.4 opt) per ton gold, the highest rock chip values collected to date on the property. The first of these samples also contained 6370 grams of silver (186 opt Ag) and the second carried 1510 grams of silver (44 opt). These two samples were collected from float material but are believed to have not moved far from a nearby subcrop source. Nearby samples carry from 0.2 to 63 grams of gold along a strike length of 335 meters. The other two bonanza samples were from narrow (1 foot or less) veins or mineralized breccias. None of these bonanza veins appears to have been drill tested. In addition to these veins, several other mineralized structural zones were recognized, which are either untested by drilling or poorly tested. These structural zones are up to at least 500 meters long and could be up to 25 meters wide in places. The highest values on these three structural zones contain a minimum of 3 grams (0.09 opt) of gold with a maximum of 8 grams (0.23 opt) of gold per ton. The average of samples within 15 meters of these structures is 1.4 grams (0.04 opt) gold and 58 grams (1.7 ounces) of silver per ton.

Palladon recently acquired data from previous operators including 77 drill hole summaries, 193 anomalous rock chips (greater than 200 ppb Au), and soil anomaly areas, mostly from the eastern side of the project area. The data was derived from work conducted by Exxon, Noranda, and Homestake Mining between 1983 and 1997. Highlights of this data set include a hole drilled near the high-grade intercept noted above that bottomed in 1 meter of 32.9 grams (0.96 opt) of gold at 46 meters. On the eastern side of the property, another hole intersected 4.6 meters of 9.6 grams (0.28 opt Au) of gold at 21 meters within 29 meters of 1 gram (0.03 opt) gold starting at the surface; follow-up drilling near this hole returned weaker mineralized intervals but the overall importance of this hole has not been fully evaluated.

These early results are very encouraging. Most significantly, the new data supports the high-grade target concept with new bonanza grade values. Also, it is apparent that despite the amount of prior work, several attractive targets remain to be tested. A two phase drill program is currently being planned for execution in the spring and summer of 2006 and considerably more field work is planned for the coming months. Forty-five new claims have also been added to the property position.

Palladon CEO George Young said, "We continue with our gold exploration work both in the Great Basin of Nevada and Utah as well as in Patagonia and in Salta province, Argentina. We believe we have excellent projects on both continents for prospective gold exploration. We expect to be in a very unique position as a junior gold explorer. As we execute our business plan in developing our iron and copper projects, we will potentially have the ability to finance our gold exploration without significantly diluting shareholders going forward."

Qualified Person and Quality Assurance and control

Mr. Rick Russell, B.Sc, Geology, who has over 36 years experience in the mining industry, is a Licensed Geologist in the State of Washington (#205), and is a member of S.E.G, is acting as the qualified person as defined in National Instrument 43-101 for the purpose of the technical release of information contained herein. Mr. Russell is an independent consultant and does not have any ownership or financial interest in Palladon Ventures Ltd.


George S. Young, Chief Executive Officer, Director

Assays quoted in this news release were performed by ALS Chemex Laboratories of Reno,Nevada.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Palladon's future plans, intentions, objectives or goals, including words to the effect that Palladon or management expects a stated condition or result to occur. Since forward- looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of the contents hereof.

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