Golconda Resources Ltd.: Drilling Starts at Ralston Valley, Nevada

CALGARY, Alberta--()--June 18, 2004--On the 19th of June, Golconda Resources (TSX VENTURE:GA) will start a 5000 ft, 12-hole reverse circulation drill program on the Ralston Valley property. The property is located 35km northeast of Tonopah, Nevada, in the Baxter Spring area at the southern tip of the Toquima Range. Carlin-type gold mineralization occurs here in Paleozoic carbonaceous siltstones, shales and limestones.

On the Carlin trend, in the Goldstrike sub-district, a sequence of Paleozoic shales and siltstones overlies beds of "laminated silty limestone". Although small ore bodies occur in all rock types, 50 million ounces of gold out of a total of 63 million occur in the lower "laminated silty limestone" sequence. Furthermore, the great majority of the gold mineralization occurs either in contact with, or within one kilometer of a Mesozoic intrusion.

At Baxter Spring, gold mineralization is controlled by high-angle faulting and by the presence of thin limestone beds in the upper siltstone sequence. The lower "laminated silty limestone" sequence does not outcrop but occurs 3km to the northeast.

Golconda's claims cover an area of about 2.3km by 3.5km (approx. 3.4 sections) and are situated to the southeast of the outcropping Paleozoic rocks at Baxter Spring. The claims are mainly covered by sand and gravel, and by sporadic outcrops of "Gold Hill" quartzite, which occurs on the eastern part of the claims as an overthrust blanket, thought to represent the "Roberts' Mountain Thrust" of the Carlin area.

Here, the most prospective "laminated silty limestone" sequence is projected to occur. The eastern boundary of the claims is also the contact with a Mesozoic intrusion. This area has never been drilled. With known Carlin-type gold mineralization occurring on the western part of Golconda's claims and the geology in the eastern part of the claims a near-perfect copy of the Carlin-Goldstrike setting, this area holds the greatest potential for significant Carlin-type gold.

Drilling on the South Monitor Property is scheduled to continue in Mid-August, when a diamond drill rig will become available.

On behalf of Golconda Resources Ltd.,

Guenter J. Liedtke,

President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Golconda Resources Ltd.
Guenter J. Liedtke
President
(403) 232-6828
Fax: (403) 232-8650
Email:golcondaresources@telus.net
Website: www.golcondaresources.com

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Contacts

Golconda Resources Ltd.
Guenter J. Liedtke
President
(403) 232-6828
Fax: (403) 232-8650
Email:golcondaresources@telus.net
Website: www.golcondaresources.com