GVM Gvm Metals

RNS Number:5216Z
GVM Metals Ltd
09 March 2006


FOR IMMEDIATE RELEASE                                             09 March 2006



           Prospecting right granted to GVM's Holfontein coal project



GVM Metals Limited (ticker: "GVM"), the South African mineral processing and
coal mining company, today announces that Holfontein Investments (Pty) Ltd has
been granted a prospecting right under section 17(1) of the Mineral and
Petroleum Resources Development Act (28 of 2002) for its key coal mining asset,
the Holfontein Project. GVM has a 49% joint venture interest in Holfontein
Investments (Pty) Ltd.


The Holfontein Project consists of two mineable coal seams, the No 5 seam, which
is a coking coal, and the No 4 Seam, which is a low-grade steam coal. GVM's
December 2005 Scoping Study was based on a resource of 56 million tonnes and 22
million saleable tonnes. The Study indicates a project value of #16.6 million.


The Holfontein Project is located in the South African Witbank coal field, an
established mining region responsible for the major proportion of South Africa's
past coal production. The site is located two hours from Johannesburg with good
infrastructure including rail, road and electricity. GVM is developing the
project with its joint venture BEE partner Motjoli Pty Ltd and funding and
payment obligations for the project will be the joint responsibility of GVM and
Motjoli.


Commenting today, Simon Farrell, Managing Director, GVM Metals said:


"We are very excited with the grant of the licence as we can now get on with the
development of the project. The next step is to complete an eighteen borehole
infill program that will form the basis of the bankable feasibility study and
establish a measured reserve. The budget for the program is just over one
million Rand which covers drilling, logging, analyses and modelling. This
program is planned to be completed by June and the feasibility study finished by
August. The great beauty of Holfontein is that it is in an area where the
geology is well understood, infrastructure and services are in place and key
markets are nearby. "



                             http://www.gvm.com.au/

GVM Metals Limited               Simon Farrell
                                 T: + 61 8 9322 6776

Beaumont Cornish Limited,        Roland Cornish
Nominated Adviser                T: +44 (0) 207 628 3396

Conduit PR                       Leesa Peters / Abigail Singleton
                                 T: +44(0) 20 7429 6600/ 6606
                                 M: 0781 215 9885 / 07739 461 061
                                 Emails: leesa@conduitpr.com /
                                 abigail@conduitpr.com

.




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