Galaxy Resources Limited (ASX:GXY) Announce Mt Cattlin Lithium Assays Confirm Ore Grade Extensions Along Strike

Perth, Dec 24, 2008 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) has reported further positive lithium results from RC drilling completed during August-September this year, confirming ore grade extensions along strike and excellent infill drilling results.

Managing Director, Mr Iggy Tan said that the drilling program was designed to test strike extensions to the west of our known resource, and infill portions of the Dowling pit area, the Company’s first mine area.

"The drill results confirm the continuation of the shallow pegmatite mineralisation south west of the current resource," said Mr Tan.

"Several holes have intersected significant Li2O grades, with the best result being hole GX903 with a mineralisation width of 13m at 1.56% Li2O.

"As expected, infill portions of the Dowling pit area also show good grades, with the best result being hole GX868 with a mineralisation width of 14m at 2.45% Li2O.

"This means that the current resource is still open along strike to the south west which continues to be positive news for the Definitive Feasibility work the Company is currently finalising," he said.

South West Extensions

Several holes on the south western margin of the prospect have intersected significant Li2O grades, including:

-----------------------------------------------HOLE  East   North From To Width Li2O Spodumene                     (m) (m) (%)  (%)  (%)-----------------------------------------------GX896 224201 6281980 12 16  4   1.11  16.33GX900 224200 6282060 20 23  3   1.35  19.9GX901 224160 6282059 18 22  4   0.73  10.75GX901 224160 6282059 29 34  5   0.85  12.43GX903 224198 6282140 22 35  13  1.56  22.99-----------------------------------------------

These intercepts represent the strike continuation of the shallow pegmatite zone that hosts the current resource.

However, some holes on the western and north western edge of the prospect have intersected what is interpreted to be a north east-trending dolerite dyke (Figure 1). Further drilling to test whether the pegmatite unit continues to the west and north west of the dyke is planned for early next year.

Dowling Infill Program

This drilling program was designed to infill portions of the Dowling pit area and deepen some existing holes in the Dowling pit area which had been terminated prematurely.

Infill drilling in the Dowling pit area has confirmed the geological model and returned some excellent intercepts, including:


-----------------------------------------------
HOLE  East   North From To Width Li2O Spodumene 
                    (m) (m) (%)  (%)  (%)
-----------------------------------------------
GX868 224850 6282458 18  32 14  2.75  40.49
GX869 224908 6282457 11  34 23  1.48  25.70
-----------------------------------------------

Drill collars from the August-September drilling (hole numbers GX856 to GX909) are highlighted in Figure 1. The drill hole database and geological model have been updated with recent results in preparation for updating the resource estimate for the Dowling pit area. A full list of significant intercepts from the August-September drilling program is included in Table 1. Note that this includes intercepts for some deep holes which were also reported in ASX release on 4 December 2008.

There is currently a six to ten week turnaround time for tantalum assays, so results for this round of drilling are awaited.

However, tantalum results have been received for the April-May RC drilling program. These are included in Table 2, which shows recent significant Ta2O5 intercepts, together with to the Li2O results that were reported on 23 September. Significant tantalum pentoxide results received to date for the April-May drilling include 3m @ 406ppm Ta2O5 and 2m @ 378ppm Ta2O5.

About Galaxy Resources Limited

Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.

Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.

Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.