Galahad Metals Inc.

Galahad Metals Inc.

May 02, 2011 14:02 ET

Red Ore Gold Reports Discovery of High Grade Gold and Silver Bearing Veins at Water Canyon, Bottle Creek Project, Nevada

OTTAWA, ONTARIO--(Marketwire - May 2, 2011) - Red Ore Gold Inc. ("RXX"), a wholly owned subsidiary of Galahad Metals Inc. (TSX VENTURE:GAX) is pleased to announce significant sampling results from Its Water Canyon Ridge target area in the Bottle Creek project, Nevada.

One of the prime target areas not yet fully developed within the Bottle Creek property is the Water Canyon Ridge target. This mineralized ridge was identified and sampled by RXX's partner, Golden Gryphon, during the 2008 and 2009 field programs, and lies west of the center of the Bottle Creek district. A portion of this target area was tested by soil grids and a significant silver anomaly was outlined with anomalous gold. The silver anomaly is open in at least two directions with gold having a less continuous dispersion pattern. The Water Canyon Ridge zone contains an epithermal vein swarm. The width of the vein swarm ranges from 100 to 400 meters and has a potential 4-km east-west strike length from west of Buff Peak pass to the east end of the Water Canyon vein swarm. Part of this strike length is covered by post mineral volcanics.

An initial grab sample from an old prospect dump on the vein swarm returned a value of 2.6 g/t gold. Further grab samples from the dump assayed from 0.2 g/t gold to 40 g/t gold and up to 171 g/t silver. The prospect dump is located at the southern edge of the vein swarm and at an apparent structural level 160 metres beneath the veins on the crest of the ridge. The precious metal bearing veins in the Water Canyon Ridge zone consist of multiple generations of banded chalcedonic quartz veins, quartz - carbonate ± adularia +/- fluorite, and quartz+/- adularia +/- sulfide veins. Some of these veins show replacement textures of quartz after carbonate. The textures of the veins, mineralogy, and trace metal content all indicate an epithermal precious metal hydrothermal system. Additional examples of the banded, oxidized, sulphidic quartz veins from a higher elevation and 0.9 kilometers farther west contain highly anomalous silver (to 171 g/t) and anomalous gold (to 0.6 g/t) with anomalous As, Hg, Mo, Pb, Sb, Se and Te. Collectively these data indicate that the surface mineralization occurs at the higher levels of a typical epithermal vein system.

Further surface surveys, geophysics and permitting will be carried out this summer in order to select the best drill targets for a fall, 1,600 metre, drill programme on the Water Canyon Ridge vein swarm.

Phase one of the drill program will begin in June, with a 6 hole, 3,000 metre+ programme on already permitted key targets in the main zone in the center of the historic Bottle Creek mercury district. One of these targets is the projected intersection of the Water Canyon vein trend and a key mineralized range front fault target on the west side of the center of the Bottle Creek district.

The Bottle Creek project is a joint venture between RXX (60%) and Golden Gryphon Explorations Inc. (40%), a private British Columbia corporation. Golden Gryphon is the project manager for this phase of work.

The Bottle Creek project area lies roughly 14 miles to the west across Desert Valley from the former high-grade Sleeper gold mine currently being re-evaluated by Paramount Gold & Silver Corp. Previous production by AMAX Gold amounted to 1.6 m ounces of gold and 2.3 million ounces of silver.

Paul Pitman, P.Geo, is the Qualified Person as defined by National Instrument 43-101 for the information presented in this press release for Galahad Metals -Red Ore Gold, and Dr. William Bagby, R.G. is the Qualified Person that supervised the work on the Bottle Creek project for the project manager Golden Gryphon Explorations Inc.

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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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