NEWS RELEASE
January 20, 2006
PENASCUDO UPDATE
Ballad Gold & Silver Ltd. (“Ballad”) BGS – TSX.V is pleased to report on its progress on the Peñascudo Gold/Silver Project in Chubut Province, Argentina.
Ballad’s Argentinean representatives continue to work with Local Authorities to resolve considerations raised by 2 of 12 interested parties with surface rights to Ballad’s Peñascudo Gold & Silver Project. Ballad’s Argentinean subsidiary, San Antonio, now holds the minas granted by the Argentinean Government. These minas, transferred from Golden Arrow Resources Corporation, provide Ballad with the rights to carryout advanced exploration and mining on the Peñascudo Project.
Ballad’s crews are standing by. Upon resolution of the surface-rights holders’ considerations by the Authorities is received, an Environmental Study focused on project development including further surface sampling, mapping, trenching, drilling and bulk sampling will begin.
Ballad continues to develop and build contacts with the local community and landowners in Argentina in connection with its planned exploration and development at Peñascudo.
The Peñascudo Gold & Silver Project is defined by its high-grade gold and silver values at the El Rey Vein.
The El Rey Vein has returned chip samples as high as 1,365 grams per ton (39.81 ounces per ton) gold and 1,730 grams per ton (50.46 ounces per ton) silver within a 35 cm wide vein (true width). Sampling within this vein has ranged from 0.083 grams per ton gold to 1,365 grams per ton gold while silver has ranged from 1.5 grams per ton to 1,730 grams per ton.
The presence of visible high grade gold within the El Rey Vein confirms the system’s potential to host high grade gold and silver mineralization within a Low Suphidation Epithermal system.
During previous exploration Ballad’s geologists focused on discovering surface evidence of an extension of the El Rey Vein. The area is believed to be covered by thin overburden. Additional gold and silver mineralization was discovered approximately 200 metres along strike northeast of the El Rey Vein. This apparent extension of the El Rey Vein outcropped for a strike length of over 21 meters and measured between 0.15 to 0.30 meters in width on surface. Preliminary chip samples of this vein returned anomalous gold values between 0.278 and 0.438 grams per ton.
This apparent extension of the El Rey Vein suggests the vein may be more than 255 metres in strike length along surface alone. Most of the El Rey Vein remains covered by overburden and Ballad plans to expose this vein and any possible extensions along strike through trenching when exploration resumes.
Ballad’s geologists discovered a second, high-grade vein located 60 meters to the north of the El Rey Vein.
Named the La Reina (the Queen) vein this second high grade vein outcrops briefly through the overburden for 6 metres along strike. Three chip samples collected from this 10 cm wide vein, returned 0.203, 7.92 and 15.60 grams per ton gold and 3.5, 203 and 201 grams per ton silver respectively.
This second gold vein runs parallel to the El Rey vein and is open on both ends along strike as it dips under overburden to the northeast and southwest and is also an excellent target for trenching to extend known mineralization to the northeast and southwest.
The El Rey vein, its possible extension, and the La Reina vein are high priority trenching targets. The presence of visible gold and high-grade gold and silver values within a multi-vein system is considered to be encouraging by Ballad’s geologists in the hunt for a Bonanza-grade, Low Sulphidation Epithermal deposit.
Dr. Bohumil Molak, P.Geo, is the qualified person for this project and has reviewed this news release.
Ballad has the right to earn up to an 85% interest in the project from Golden Arrow, subject to a 1.5% NSR royalty by incurring US $1,800,000 in exploration over 5 years.
BALLAD GOLD & SILVER LTD.
Per: “Anthony J. Beruschi”
Anthony J. Beruschi, President
For further information please contact the president, Anthony J. Beruschi B.Sc. LLB.
at 604.682.7159 or 1.888.880.2288 or ajb@balladnet.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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