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. The resources are classified as
Indicated and the results are shown in Table 1.
Table 1: Mineral Resources: Comstock Mountain Lion as at August 1, 2009
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Short Metric
Tons Tonnes Fe SiO2 Al2O3 P CaO MgO
Area (millions) (millions) % % % % % %
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CML 31.35 28.44 49.60 10.27 2.70 0.239 3.77 1.89
Stockpiles 9.00 8.16 33.88 28.34 5.74 0.277 6.27 3.86
Total 40.35 36.60 46.09 14.30 3.38 0.250 4.33 2.33
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Notes:
CML Resource Estimation
1. A grade shell was created at 10% iron using the historic
drilling.
2. The drill hole database including 121,546 feet (37,047
meters) in 434 holes was composited into 10 foot intervals.
3. A block model consisting of blocks 25 feet square in plan
view and 20 feet high was created using Maptek's Vulcan
software.
4. The resource was estimated by ordinary kriging within the
grade shell using only composites within the grade shell. The
estimation required a minimum of two drill holes for block
estimation.
5. The resource was estimated using topography current as of
August 1, 2009.
6. The resource was estimated using volumes and grades within
the grade shell and do not include external dilution.
7. The resource is stated at a cutoff of 20% iron.
Stockpiles
Wireframes were constructed for each stockpile using toes and
crests surveyed by Palladon's surveyor.
1. The drill hole database includes 2,520 feet (768 meters) in
29 RC holes.
2. The grades within the stockpiles were estimated using a
polygonal method.
Ms Leah Mach, Principal Resource Geologist with SRK is the
Qualified Person (QP) for the resource estimate and has reviewed
and approved this press release.
On Behalf of the Board of Directors,
John W. Cutler, President & Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on
advancing the Comstock/Mountain Lion iron mine in Iron County,
Utah. Palladon also holds gold exploration projects in Nevada and
Utah.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the Company's: (1) expectation that it will file a NI 43-101
technical report within 45 days of this press release; (2) ability
to work with SRK to complete a feasibility study for the Iron
Mountain Project by Q2 2010; (3) expectation and ability to file
the financial statements and related MDA for the first quarter
ended May 31, 2009 by early next week and (4) ability to
immediately apply to have the cease trade order lifted once the
Company is in compliance with all filing requirements.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a downturn in
general economic conditions in North America and internationally,
(2) the inherent uncertainties and speculative nature associated
with mineral exploration and production, (3) a decreased demand for
minerals, (4) any number of events or causes which may delay or
cease exploration and development of the Company's property
interests, such as environmental liabilities, weather, mechanical
failures, safety concerns and labour problems; (5) the risk that
the Company does not execute its business plan, (6) inability to
retain key employees, (7) inability to finance operations and
growth, (8) other factors beyond the Company's control; and (9) the
risk that the Company will not be able to raise funds due to Luxor
Capital Group. These forward-looking statements are made as of the
date of this news release and, except as required by law, the
Company assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results differed
from those projected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Palladon Ventures Ltd. John W. Cutler President &
CEO 801.521.5252 801.521.5454 (FAX) info@palladonventures.com
www.palladonventures.com; www.ironbullmining.com