SALT LAKE CITY, UTAH -- (Marketwire) -- 08/07/09 -- Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE: PLL)(FRANKFURT: PV-1) is pleased to announce the first National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for its Comstock Mountain Lion ("CML") deposit at the Iron Mountain Project in southwest Utah. The indicated mineral resource estimate totals 40.35 million short tons, at a grade of 46.09% Fe (Iron).
The independent mineral resource estimate was prepared by SRK Consulting (US), Inc. ("SRK"). The resource estimation and classification follows Canadian Institute of Mining and Metallurgy (CIM) guidelines and meets Canadian National Instrument 43-101 reporting standards.
Palladon CEO, John Cutler, stated, "This compliant resource estimate solidifies our previous non-compliant resource estimates, and gives Palladon a compliant resource for the first time in the Company's history. This resource estimate is also an important component of the Preliminary Economic Assessment ("PEA"), which assesses the technical and economic merits of various development options for the Comstock Mountain Lion deposit and stockpiles. Palladon will file a NI43-101 PEA within 45 days of this press release. The Company will now work with SRK to complete a feasibility study for the Iron Mountain Project by Q2 2010."
Further details of the resource estimate are outlined below.
As previously disclosed, the Company has filed its audited financial statements for the fiscal year ended February 28, 2009, along with the related management's discussion and analysis ("MDA"). Financial statements and MDA for the first quarter ended May 31, 2009 are expected to be filed early next week. The Company believes that the first quarter filing will bring the Company into compliance with its filing requirements, at which time the Company will immediately apply to have the cease trade order lifted.
The company has completed confirmatory drilling at the Comstock Mountain Lion (CML) iron deposit and stockpiles. SRK reviewed the results and considers the recent drilling and analyses to confirm the historic drilling conducted between 1942 and 1961 by Columbia Steel, a subsidiary of US Steel, and Colorado Fuel and Iron Company. Six core holes from the early drilling were twinned by six reverse circulation (RC) holes that include a total of 1,735 feet (529 meters). Additionally, 2,520 feet (768 meters) in 29 RC holes were drilled in the stockpiles. The samples were analyzed at Palladon's laboratory in Cedar City, Utah which is managed and operated by SGS North America Inc. ("SGS"). Check analyses were completed at Lerch Brothers, Inc. in Hibbing, Minnesota.
SRK has conducted a resource estimate for the Comstock Mountain Lion deposit and stockpiles.
