Palladon Ventures Ltd.

Palladon Ventures Ltd.

March 10, 2005 13:31 ET

Palladon Ventures Ltd. Completes Scoping Study on Iron Ore Project




MARCH 10, 2005 - 13:31 ET

Palladon Ventures Ltd. Completes Scoping Study on Iron
Ore Project

BROOMFIELD, COLORADO--(CCNMatthews - March 10, 2005) - Palladon Ventures
Ltd. (TSX VENTURE:PLL) ("Palladon") is pleased to announce it has
completed a preliminary scoping study for the operation and development
of the Comstock / Mountain Lion Iron Project, which Palladon has agreed
to acquire with its joint venture partner, Western Utah Copper Company
("WUCC"), as previously announced in press releases of February 1 and 7,
2005. The acquisition of the Comstock / Mountain Lion Iron Project
remains subject to the approval of the TSX Venture Exchange.

Palladon has undertaken the preliminary scoping study to evaluate the
project and guide in development decisions going forward. The study has
evaluated various parameters of the project, including mining costs,
resource evaluation, mine capital requirements, milling costs, mill
design, material costs, permitting and reclamation costs. The
preliminary scoping study was completed by Dr. Michael G. Nelson on
March 8, 2005.

There is substantial historical data concerning the mining and resource
evaluations on the project, as considerable work has been performed as
late as 1997 by previous operators on the property. Palladon believes
that mining costs and resource estimates have been thoroughly and
adequately analyzed in the previous preliminary feasibility studies on
the project, and therefore an updating of those studies to provide
current costs adjusting for inflation between 1997 and 2005 could be
performed readily at minimal cost.

The preliminary assessments in the scoping study are preliminary in
nature, and include and are based upon inferred mineral resources that
are currently considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessments made in the study will be realized.

The preliminary scoping study evaluated the available historical data.
In addition, the study evaluated the possibility that much of the higher
grade material, particularly the tonnages that are pre-stripped and
lying exposed in benches in the existing open pit of the mine, may be
suitable for direct shipping. The potential for a minimal amount of
processing (magnetic separation or otherwise) of such material to make
it more suitable for direct shipping was also studied. Ten scenarios for
development were evaluated. The study concludes that direct shipping of
untreated iron ores could immediately generate average annual cash flow
of $5 million to $15 million with net present values of $33 to $114
million and rates of return in excess of 230%, depending upon prices
received. Results for treating ore to upgrade the iron concentration to
65% under the scenarios examined yields $10 to $31 million in annual
cash flow, net present values of $62 to $215 million and net present
values of 63% to 165%. Production of pig iron or steel under various
scenarios yields greater cash flows, with net present values in excess
of $1 billion and rates of return from 37% to 85%. The study concluded
that the property is valued in excess of the $10 million purchase

At current prices for steel (approximately US$700/mt), the scoping study
has confirmed Palladon's belief that a processing facility would carry a
sizeable return on investment, particularly when the iron ore fed to the
facility carries a low mining cost and minimal transportation cost, as
would the ore from the project. Once elevated to the "reserve" status,
the measured resources in the Comstock / Mountain Lion open pit, which
are either pre-stripped, with a low strip ratio or already stockpiled
could feed a facility producing one million mt of steel annually for
more than 15 years before processing any other material from the
property, if such an option is proven to be feasible.

Qualified Person and Quality Assurance and control

Dr. Michael G. Nelson has acted as the qualified person as defined in
National Instrument 43-101 for the purpose of the technical release of
information contained herein.


George S. Young, President, Director


Contact Information

    Palladon Ventures Ltd.
    George S. Young
    President, Director
    (303) 327-1535
    (303) 327-1526 (FAX)
    The TSX Venture Exchange has not reviewed and does not take
    responsibility for the adequacy or accuracy of the contents hereof.