Palladon Ventures Ltd.
TSX VENTURE : PLL

Palladon Ventures Ltd.

June 15, 2005 02:06 ET

Palladon Ventures Ltd.: Magnetic Separation Tests on Iron Ore Yield Direct Shipping Grades

BROOMFIELD, COLORADO--(CCNMatthews - June 15, 2005) - Palladon Ventures Ltd. (TSX VENTURE:PLL) ("Palladon") is pleased to announce that simple magnetic separation tests on composite ore samples from the Comstock/Mountain Lion Iron Project yielded direct shipping grades in the range of 65% iron. Magnetic separation also evenly upgraded the ore to final direct shipping quality, removing impurities to conform to specifications on other elements and substances as required. All samples crushed in the size ranges tested from minus 10-mesh to 270-mesh responded similarly to yield direct shipping grades and quality.

Composite bench samples for the tests were taken from the three major bench areas in the pit by an independent consultant. The bulk samples were delivered to Dawson Metallurgical Laboratories, split into four representative samples, and crushed to four different sizes. Head and product samples were sent to Lerch Brothers of Minnesota for analysis of iron, phosphorous, sulfur, silica and alumina.

The composite bulk splits taken from the pit assayed as follows:



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Sample Fe, % P, % S(t), % SiO(2), % Al(2)O(3), %
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Composite 1 56.03 0.111 0.019 10.73 2.18
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Composite 2 58.45 0.070 0.018 7.81 1.77
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Composite 3 54.50 0.281 0.186 11.7 2.21
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Composites 1 and 2 represent a substantial portion of the 17,961,137 mt (as per National Instrument 43-101 dated April 6, 2005) resource that is pre-stripped and lying in the three benches in the mine and will be mined over the next several years. Therefore, it was determined to commence magnetic separation only on the composite 1 bulk sample from a bench with lower grade and higher impurities than the composite 2 bulk sample. The sample was split into four separate portions and crushed to the sizes listed below to evaluate the effectiveness of magnetic separation at each size. The following table shows the results of these tests:



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Sample Fe, % P, % S(t), % SiO(2), Al(2)O(3), Fe
% % Recovery,%
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- 10 mesh 63.4 0.057 0.010 5.19 0.88 97.1
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- 65 mesh 64.8 0.045 0.014 4.92 0.82 98.0
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- 150 mesh 65.1 0.046 0.011 4.86 0.75 97.1
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- 270 mesh 66.7 0.034 0.010 4.15 0.65 96.7
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The ore proved to be extremely friable, and was easily prepared as feed for magnetic separation. Testing is currently underway to coarsen the feed and vary the magnetic strength to further reduce entrained gangue minerals in the final product. In the meantime, product samples have been submitted to prospective purchasers of the direct shipping ore in connection with ongoing negotiations for a sales contract.

Palladon president George Young said, "We are extremely pleased with how easily this material upgrades to direct shipping levels. This provides us the opportunity to design a final product to meet a buyer's needs. We believe these tests demonstrate the amenability of nearly 20,000,000 tonnes of pre-stripped material to rapid enhancement without incurring significant capital costs."

Currently, Palladon is finalizing the selection of a contracting firm that will provide contract mining in conjunction with iron ore processing. It is anticipated that the contractor will provide all ancillary equipment, including crushing, conveyor and magnetic separation equipment, thus dramatically reducing Palladon's capital cost requirements. Palladon plans to mobilize a contractor to the site by July 15, 2005 to commence preparations for mining and prepare a feed stockpile for upgrading and shipping.

Qualified Person and Quality Assurance and Control

Mr. Donald G. Foot, Jr., who holds a degree in Metallurgical Engineering from the University of Utah, has over 30 years of experience in mineral processing, beneficiation equipment design, marketing and sales, and executive management. He has acted as a qualified person as defined in National Instrument 43-101 for the purpose of the technical release of information contained herein relating to the Comstock/Mountain Lion project.

ON BEHALF OF THE BOARD OF DIRECTORS OF PALLADON VENTURES LTD.

George S. Young, President, Director

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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