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DRILLING TO COMMENCE ON PALOPO GOLD PROJECT INDONESIA

February 24, 2011

TSX: GL

        --  Program designed to test high-grade shoots in Mangkaluku
            prospect
        --  Initial drill holes to test previously unrecognised dilational
            zones
        --  Previous drill results include 2m @ 115 g/t Au, 2m @ 18.3 g/t
            Au and 8.4m @ 7.5 g/t Au
        --  Mineralised zones have strike-lengths >500m with multiple
            quartz-sulphide veins

VANCOUVER, Feb. 24 /PRNewswire/ – Golden Peaks Resources Limited (the Company)
(TSX: GL) is in the final stages of completing it’s 100% acquisition of
Reliance and is pleased to announce that Reliance Resources Limited
(Reliance) has been working towards the commencement of drilling at the
Palopo Project on Sulawesi Island, Indonesia (Figure 1) . Extensive
site works and preparatory activity is completed and an initial
5,000-metre drill program is planned. Reliance owns a 90% interest in
the Palopo property.

(http://www.goldenpeaks.com/i/maps/TanoyanAnggrek.jpg)
Figure 1: Location of Golden Peaks Tanoyan, Anggrek and Palopo
properties

This drill program will be the first phase of drilling at Palopo by
Reliance. Initial drilling was undertaken by the Indonesian state
mining company, ANTAM, in 1999 – 2000 with 11 holes completed (3,119
metres). The second campaign was completed by the previous owners of
the property, Avocet Mining PLC (Avocet), totalling 12 diamond
drillholes (1,831.5 metres).

Previous work at the Mangkaluku Prospect identified at least three
principal mesothermal gold-bearing vein zones: Western, Central and
Eastern Zones. Each zone contains multiple quartz-sulphide veins +/- Au
with individual veins having strike-lengths up to 500m and varying
between 0.5 and 5 metres in width (Figure 2) .

Trenching by both ANTAM and Avocet outlined wide intersections of
significant gold mineralisation including;


    MLT029   18.1m @ 13.9 g/t Au  and 5.4m @ 11.1 g/t Au

    MLT030    3.1m @  8.2 g/t Au  and 6.0m @   4.7 g/t Au

    MLT033   18.0m @  6.8 g/t Au  and 6.0m @ 16.0 g/t Au

    MLT039   36.0m @  6.8 g/t Au  incl 9.0m @ 16.6 g/t Au

    MLT046    3.0m @  39.5 g/t Au  and 5.0m @ 16.1 g/t Au

    MLT046   13.4m @  10.7 g/t Au 

(http://www.goldenpeaks.com/i/maps/PalopoGeology.jpg)
Figure 2: Palopo Geology showing Vein Systems and Avocet + ANTAM drill
hole collars

Previous drilling intersected a series of overprinting quartz veins
indicating multiphase mineralisation in a mesothermal environment
within and adjacent to a large porphyritic monzodiorite igneous
intrusion. One of the final phases of veining consists of laminated
quartz-sulphide + gold mineralisation.

The previous drilling should be regarded as preliminary in nature, with
quite widely spaced scout drillholes (Figure 2) along each Vein system.
Significant intersections from the Avocet and ANTAM drilling include:


    COMPANY Drill Hole  From     To  Length     Au        ZONE
                        (m)     (m)   (m)   Grade (g/t)      

     ANTAM      MK01   248.75 257.15  8.40       7.50   EASTERN

     ANTAM      MK02   112.00 113.00  1.00      11.90   EASTERN

     ANTAM      MK03   335.00 337.00   2.0       9.68   EASTERN

     ANTAM      MK06   69.15  70.15    1.0      16.95   CENTRAL

     ANTAM      MK09   104.9  105.4    0.5      21.57   CENTRAL

     ANTAM      MK11   149.65   158   8.25       1.31   CENTRAL

    Avocet     MLD001  66.00  76.00  10.00       1.14   EASTERN

    Avocet     MLD004  67.00  73.00   6.00       3.89   EASTERN

    Avocet     MLD005  34.00  36.00   2.00     115.00   WESTERN

    Avocet     MLD005  114.50 115.00  0.50      23.30   WESTERN

    Avocet     MLD006  128.00 135.00  7.00       1.85   CENTRAL

    Avocet     MLD006  150.00 161.00 11.00       2.65   CENTRAL

    Avocet     MLD007  117.00 129.00 12.00       3.51   EASTERN

    Avocet     MLD008  16.00  18.00   2.00      18.30   EASTERN

    Avocet     MLD008  56.00  65.00   9.00       3.91   EASTERN

    Avocet     MLD012  126.30 127.10  0.80      16.20   CENTRAL

    Avocet     MLD012  135.00 135.90  0.90      16.90   CENTRAL

The company believes that the sample security, sample preparation and
analytical procedures for the exploration and drilling conducted by
Avocet are of an industry standard and appropriate for exploration
programs. The drilling was reconnaissance in nature and further
drilling is needed before true widths of individual veins and the vein
zones in general can be made. The first program by Antam was conducted
in the late 1990′s and no data has been provided to the company
regarding the procedures followed, and the current location of any
remaining drill core is unknown

The initial focus of the current drill program is to follow-up
high-grade intersections from previous drilling to provide a framework
for recognizing controls of high-grade mineralisation within the lode
systems. The previous drilling was too widely spaced to allow modelling
of interpreted high-grade shoots.

Preliminary field investigations by Reliance in 2010 has indicated the
presence of prospective dilational zones within quartz veins, the
significance of which have not been recognised by previous explorers.
Dilational zones in such geological settings are well known to present
pathways for mineralised fluids and may control high-grade shoots
within vein zones at Mangkaluku and other prospects within the Reliance
property. The highest-grade drill intersection at Mangkaluku (MLD005;
2m @ 115.0 g/t Au) is located within one of these interpreted
dilational zones (Figure 3). There has been no close-spaced follow-up
drilling of this or other high-grade intersections by previous
explorers.

The first drillholes in the current program are located in the Western
Zone and are designed to test for extensions of high-grade
mineralisation intersected in hole MLD005 (Figure 3) including 2m @ 115.0 g/t Au from 34m and 0.5m @ 23.20 g/t Au from 114.5m. These intersections are interpreted to lie within a newly
recognised dilational zone. Visible gold is recorded from drillcore in
both zones.

The proposed drill program will run in conjunction with a surface
geological mapping and sampling program, which aims to outline addition
dilational zones throughout the Mangkaluku prospect.

(http://bit.ly/g0sREK)
Figure 3: Western Zone Vein Systems, interpreted dilatational zones;
showing Avocet drill hole collars and initial proposed drillhole
locations

Golden Peaks’ Scott Emerson commented: “Reliance Resources now has two
active drilling programs underway initially totalling over 10,000
metres. Both are highly prospective projects with some very positive
historical data. The drilling program at Tanoyan is progressing well
and running according to schedule.”

Reliance has purchased two new diamond drill rigs with one currently
being used for resource drilling at the Tanoyan Project in North
Sulawesi the other one is being used for the Palopo Project. The two
rigs are operated by an Indonesian drilling contractor (MRA) under a
management / maintenance agreement with Reliance.

This press release has been reviewed and approved by Mr. John Levings,
B.Sc., MAusIMM, director of Reliance Resources Limited and a Qualified
Person as defined by National Instrument 43-101, under whose direction
the exploration programs are being carried out.

The statements herein that are not historical facts are forward-looking
statements. These statements address future events and conditions and
so involve inherent risks and uncertainties, as disclosed under the
heading “Risk Factors” in the company’s periodic filings with Canadian
securities regulators. Actual results could differ from those currently
projected. The Company does not assume the obligation to update any
forward-looking statement.

SOURCE Golden Peaks Resources Ltd.


Source: newswire



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