NEWS RELEASE

MARCH 8, 2006

 

PERUVIAN SILVER-COPPER-ZINC PROPERTIES TO BE ACQUIRED

Vancouver, B.C. – March 8, 2006 – Ballad Gold & Silver Ltd. (TSX.V:BGS) is pleased to announce it is expanding its South American operations to once again include a significant acquisition and exploration program in Peru.

Ballad is pleased to announce it has entered into two option agreements providing for the option of the Mina Suyoc Silver copper-zinc-silver property and the Mina Verde Silver copper-zinc-silver property located in central Peru.  

The properties are on the Marañón Fold-Thrust Zone which runs along the Andes Mountain Range separating the eastern and western Cordilleras within South American.  This fold-thrust structure is regionally related to several world class economic deposits including Yanacocha and Antamina. Both properties are in an area of considerable exploration potential containing a wealth of historic mining. 

Both the Mina Verde Silver and Mina Suyoc Silver property areas have been historically worked dating back to South America’s original miners, the Inca.  Both lie within a geological assemblage favourable to economic mineralization on both a regional and local scale.

Locally, the area is home to numerous previous mines and the properties lie on strike with Morococha to the northwest, owned by Pan American Silver Corp., and Yauricocha, owned by Sociedad Mineral Corona S. A.
 
Both the Mina Verde Silver and Mina Suyoc Silver properties are located within an area of considerable potential to host economic skarn and vein related mineralization. Importantly, the unique combination of copper, zinc, lead and silver mineralization presents a possible exploration model similar to Peru’s Antamina copper-zinc skarn deposit located within the Department of Ancash.
 
MINA VERDE SILVER
 
Mina Verde Silver covers approximately 500 hectares and represents a copper-zinc-lead-silver skarn exploration target.  The property reportedly hosts 9 mineralized zones within a skarn environment which are believe to represent typical distal zoning associated with skarns including contact metamorphic skarn, stratiformed skarn bodies, veining alteration and aureoles.  
 
The nine identified zones of mineralization are situated along and near the contact of a northwest trending carbonate unit, the Chulec Formation, where skarn type mineralization has been identified and sampled. 
 
Ballad has the right, following a 90 day due diligence period, to enter into an option agreement to earn up to a 90% interest in the Mina Verde Silver Property by completing a feasibility study within 8 years and issuing a total of 1,250,000 common shares of Ballad over 60 months.
 
Upon Ballad issuing 750,000 shares and completing US$750,000 in exploration and development work, Ballad will have earned a 50% undivided interest. After completing $1,250,000 in exploration work and issuing 1,250,000 shares Ballad will have earned a 75% interest.  Ballad is entitled to purchase half (1% NSR) of a 2% NSR royalty for $500,000 at any time.
 
The option agreement will also provide Ballad with a one time right to acquire 100% interest in the Mina Verde Property subject to the 2% NSR for a one time payment of $1,750,000 in cash or shares at Ballad’s option, together with the aforementioned 1,250,000 common shares, for a period of 5 years from the date of TSE acceptance for filing of the option agreement.
 
The property includes a 100 kilometer area of influence clause.
 
MINA SUYOC SILVER
 
Mina Suyoc is located 1 km north of Mina Verde covering approximately 800 hectares and includes a copper-zinc-silver skarn exploration target.  Prior work on the property reportedly identified 17 zones with skarn related structures including veins and alteration halos.  Typical skarn type zoning has been reported on the property covering an area 2.5 by 2 km. 
 
Ballad has the right, following a 90 day due diligence period, to enter into an option agreement to earn up to a 90% interest in the Mina Suyoc Property by completing a feasibility study within 8 years and issuing a total of 1,250,000 common shares of Ballad over 60 months.
 
Upon Ballad issuing 1,000,000 shares and completing US$1,000,000 in exploration and development work it will have earned a 50% undivided interest. After completing $1,900,000 in exploration work and issuing 2,500,000 shares it will have earned a 75% interest.  Ballad is entitled to purchase half (1% NSR) of a 2% NSR royalty for US$1,000,000 at any time.
 
The option agreement will also provide Ballad with a one time right to acquire 100% interest in the Mina Suyoc Silver Property subject to the 2% NSR for a one time payment of $2,500,000 in cash or shares at Ballad’s option, together with the aforementioned 2,500,000 common shares, for a period of 5 years from the date of TSE acceptance for filing of the option agreement.
 
The property includes a 100 kilometer area of influence clause.
 
Mr. Len De Melt and Linda Pimentel, a Peruvian, are the vendors of both properties.  Mr. De Melt has worked extensively in exploration, acquisition and mine development in Peru for the past 10 years. He has been instrumental in securing exploration properties for a number of companies.  
 
Mr. De Melt has consented to act as a director of Ballad following the acquisitions and will manage Ballad’s Peruvian operations. Mr. De Melt’s extensive history and experience in Peru and his success in identifying and developing exploration properties and targets make him a valuable addition to Ballad’s board of directors.
 
Ballad is currently negotiating with Mr. De Melt for further exploration properties in Peru and expects to conclude further agreements shortly.

Ballad will begin its due diligence  review of the Mina Verde and Mina Suyoc immediately.  If it proceeds with the option agreements on the aforementioned terms within the 90 day period it will issue a subsequent news release with exploration results.  The option agreements will be subject to acceptance for filing by the TSX Venture Exchange.
 
Ballad intends to build on its long history, experience and contacts in Peru.  Ballad began operations there in the Spring of 1995.  In September of 1997 Ballad acquired the Peruvian properties and assets of the former TVX Gold Inc., including an extensive database of Peruvian properties.
 
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 accuracy of the content of this News. 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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