Operational Update

18 Jul 2005 07:01

Falkland Gold and Minerals Ltd18 July 2005 18th July 2005 FALKLANDS GOLD AND MINERALS LTD ("FGML" or the "Company") Operational Update Falkland Gold and Minerals Limited, the exploration company with exclusiverights to explore for gold and minerals in the Falkland Islands, is pleased toprovide the following operational update. The Company has been drilling targets identified from its 2004 aeromagneticsurvey of the Falkland Islands, a number of which have coincident alluvial goldin adjacent drainage systems. FGML identified at least 23 targets and hascommenced exploration activities to investigate these targets. Drilling commenced in March 2005 and as of the end of June a total of 2,630metres of HQ core had been drilled on three targets located near our Goose Greenfacility (targets T5, T6 and T7). The first analytical results from the drilling program have now been receivedand the Company can report the following findings relating to target T5 in EastFalklands : Sub-economic indications of gold (Au) were identified in three intersections(0.19 grams Au/tonne over 0.75 metres; 0.19 grams Au/tonne over 1.0 metre and0.18 grams Au/tonne over 1.0 metre). There was one sub-economic intersection ofplatinum (Pt) and palladium (Pd) (0.17 grams Pt/tonne over 1.0 metre and 0.14 Pdgrams/tonne over 1.0metre). A silver showing of 3.5g per ton over a 1.3 metreintersection was also identified in doleritic intrusions. The gold and platinum anomalies were associated with carbonaceous shale andmudstones in an area which appears to be a structurally controlled fault wedge. Whilst the values received are sub-economic, they are of great geological meritto the exploration. The anomalies associated with the shale and mudstones andthose with the doleritic dyke are encouraging as they demonstrate that theearlier exploration work has correctly identified anomalous areas. The resultsand core logs have also been re-submitted for analysis to enhance the originalgeophysical study. This is the first drilling ever done on the Falklands and these initial assaysare starting to validate the initial target selection from the geophysical andgeochemical work carried out in 2004. Whilst this scientific success shouldassist in homing in on potential economic success, there is a need forconsiderable exploration work in order to fully understand the geologicalsettings and to then focus in on any higher grade zones. FGML has also commenced target refinement soil sampling on Target T11 wheregeochemical sampling has returned anomalous gold results confirming the originalstream geochemical samples. The gold anomalies are co-incident with platinum andsilver anomalies. At this stage, only a quarter of the geochemical work iscomplete but these preliminary results are encouraging. Drilling continues in East Falklands with 20 of the initial 23 identifiedtargets still to be investigated. As work advances on these targets and assayresults are received back from the laboratory and interpreted, the Company willcontinue to report its findings on a regular basis. Enquiries Bell Pottinger Corporate & FinancialNick Lambert / Paddy Blewer +44 (0)20 7861 3232 This information is provided by RNS The company news service from the London Stock Exchange