Galahad Metals Inc.

Galahad Metals Inc.

April 21, 2011 09:25 ET

Red Ore Gold Inc. Signs LOI on Ryepatch, Nevada Gold-Silver Property

OTTAWA, ONTARIO--(Marketwire - April 21, 2011) -Red Ore Gold Inc. (ROG), wholly owned subsidiary of Galahad Metals Inc (TSX VENTURE:GAX) announced today that ROG has signed a Letter of Intent (LOI) with Gold Range Company LLC (GRC) to explore and develop their Ryepatch gold-silver-tungsten-antimony property in Pershing County, Nevada.

The Ryepatch Property (including the historic Ryepatch and Agness Mines) is believed to host the potential to develop large gold-silver bulk mineable mineralization similar to the adjacent Florida Canyon and Standard open pit / heap leach mines hosted in carbonate rocks of the Triassic age Prida Formation.

Discovered about 1860, the Ryepatch Mine is reported by the State of Nevada to have produced more than 600,000 ounces of silver by 1870. In 1954 they reported that 80 tons of high grade tungsten ore was produced and also that minor high grade antimony was produced during the 1960's.

The Rye Patch property, comprised of 75 unpatented lode claims and one patented lode claim, covers approximately 1,500 acres and 2.5 miles of prospective strike length over the productive Humboldt Thrust Fault.

The mineralized gold-silver zone has been traced in outcrop for more than 2.5 miles and occupies a north-south trending structural corridor 400 to 1,000 feet in width along a major thrust fault. Mineralization on the south end of the corridor is silver dominated, progressively becoming enriched in gold from the south to the north where surface grab samples range from 1.25 to 3.44 grams per tonne (.04 to .11 ounces per ton) gold in the mineralized zone in the Prida and Rochester Rhyolite Formations. Antimony-rich veins are frequently associated with gold mineralization and surface grab samples from the central portion of the main corridor have yielded results to 1.25 grams per tonne (.041 ounces per ton) gold and 291 grams per tonne (9.3 ounces per ton) silver.

Extensive mine working, to only a depth of 61 meters (200 feet), explore the zone with the bulk of development near the southern portion of the property in the vicinity of the Ryepatch Mine. Additional small mine workings are present along the entire strike of the mineralized corridor. Most of the historic workings below surface are accessible but none have been mapped or sampled. The property has never been drilled.

The terms of the LOI calls for ROG to enter into a definitive Option Lease Agreement within 60 days to acquire 100% of the mineral exploration and development rights on the property subject to a net smelter royalty (NSR). There are no work commitments in the deal. The terms of the advance production royalty payments start with $10,000 on signing the LOI plus $10,000 on signing the Lease Agreement, $20,000 at the end of year one, $30,000 at the end of year two, $50,000 at the end of year three, $100,000 at the end of year four and $200,000 at the end of year five and thereafter. GRC retains a 5% NSR which shall be subject to a buy-down clause in favour of ROG to 1.5% NSR for an amount to be negotiated in the final Lease Agreement. The advance production royalty payments shall be deductible from future production royalties.

The final contract for this transaction is subject to approval by the TSX-V.

Garry K. Smith, P. Geo., is the Qualified Person as defined by National Instrument 43-101 for the Ryepatch Project, and has approved the contents of this release.

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"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

Neither the TSX Venture Exchange, nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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