Glencairn Gold (GLE)

As many of you know, we are bullish on gold - even though it took a hit yesterday. One of our recent picks, Glencairn Gold (GLE) recently announced the purchase of a new property.

Glencairn Gold Corporation (TSX:GGG.TO - News)(TSX:GGG-WT.TO - News)(AMEX:GLE - News) is pleased to announce the acquisition of a 100% interest in the Mestiza property in Nicaragua. The property is 70 kilometres by road east of the Company's Limon Mine.

The property represents a key block of ground covering approximately half the strike length of a 2.4-kilometre-long, gold-bearing structure known as the Tatiana Vein. The remainder of the Tatiana Vein is on the La India property already held by Glencairn. Along half its strike length, including the Mestiza portion, the Tatiana Vein hosts an inferred resource of 689,700 tonnes grading 10.3 grams per tonne gold containing 228,000 ounces of gold. The deposit is open in both directions, and at depth. Glencairn has agreed to pay the Mestiza Property owners approximately $2.4 million over 42 months.

"We view Tatiana as potentially providing high grade feed to the Limon mill, at a target rate of 300-400 tonnes per day," said Glencairn Chairman Kerry Knoll. "This has the potential of adding another 20,000-35,000 ounces a year to Limon's output." Limon is estimating production of 38,000 ounces in 2006 and 52,000 in 2007.

The Company will begin a drilling program as soon as possible with the purpose of upgrading the resource to reserves. This will be followed by an internal feasibility study on the viability of mining and truck haulage to the Limon mine. The Santa Pancha and Talavera zones at the Limon Mine property, in continuous production since 1941, will continue as the prime source of mill feed. The mill at Limon mine has sufficient capacity to process the additional ore that would be produced from the Mestiza property.

The Mestiza property is 200 hectares and now comprises part of the larger La India land package of 9,680 hectares.