BPC.L Regulatory News (BPC)

10 Sep 2007 07:01

Falkland Gold and Minerals Ltd10 September 2007 Falkland Gold and Minerals Limited (the "Company") Shareholder Update 10 September 2007 The Board of Falkland Gold and Minerals today updates shareholders ondevelopments since the Interim results were announced on 12 June 2007 The work programme in the Falklands was designed to identify the source of thealluvial gold recovered from the streams. This gold is associated with a zoneof tight, east-west folding which has affected the Bluff Cove and Port SussexFormations amongst other rock sequences. These formations contain favourableinterbedded shales and sandstone units that could, given the correct structuraltraps, be favourable targets for Slate Belt type gold and in particular "SaddleReef" styled mineralisation. The saddle reefs are currently being investigatedbut the Board believes that these are unlikely to generate ore bodies ofeconomic size. The work programme has also been amended having regard to therecommendations of Professor Viljoen and although minor uranium anomalies havebeen detected these were not of economic interest. This work and the completionof the current drilling programme elsewhere is expected to be complete by theend of 2007. The Board has decided that unless the remaining work programme identifiesdeposits likely to be of commercial interest, it will cease explorationactivities in the Falklands. At that time the Company is expected to have cashbalances of approximately £3.5million and an experienced exploration team fullyequipped with 2 drills and sample processing equipment. The Board intends toseek opportunities elsewhere in the World and has initially identified gold,molybdenum and uranium as the metals most likely to be of interest. Shareholderswill be updated as soon as possible on the Board's proposals for the next stageof the Company's development. The Board is disappointed that the exploration programme in the Falklands has todate not been successful and would like to express its appreciation of theefforts of its employees and the cooperation of the Government and people of theFalklands. Enquiries:Falkland Gold and Minerals LimitedRichard Linnell (Chairman) +27 82 440 6710 W.H. Ireland LimitedJames Joyce +44 (0)20 7220 1666 This information is provided by RNS The company news service from the London Stock Exchange