Golconda Resources Ltd.: New Indicator Minerals and Geophysics Reveal Greater Diamond Potential on Alaskan Property

CALGARY, Alberta -- Dec. 17, 2004 -- Golconda Resources Ltd. (TSX VENTURE:GA): A recent re-evaluation of the airborne magnetic survey flown over the Shulin Lake, Alaska property revealed numerous intrusive-style magnetic anomalies, both small stocks or pipes and dikes. Therefore, it is significant that hole 22, drilled in March of this year, was situated at the rim of one of these pipe-like features outlined by the magnetic survey. Material from this hole recovered three micro diamonds (see news release from October 6, 2004) in an 8kg sample. Further samples from this hole (22) and the two nearest holes (17 & 20) have been sent for caustic dissolution and diamond testing. Results are expected in early January.

Diamond Indicator Minerals

Purple and orange garnets were observed while inspecting the fusion residues from the samples submitted for micro diamond testing, and were sent to R. L. Barnett, Geological Consulting Inc., for microprobe analysis. Five purple garnets submitted were G-9 garnets and twelve orange garnets were high magnesium pyropes (19-20% MgO), with high titanium content indicating a strong eclogitic component. Of particular importance is that a low manganese content shows that these fall into the field of diamond-associated garnets (diamond-associated garnets are those included in diamonds, occurring in diamond-bearings samples, or occurring inside the diamond stability field). Also, the calcium/chrome ratio is that of garnets associated with diamonds and not with graphite. The geochemistry of the garnets compares well with other eclogitic-dominated diamond systems.

Although diamond inclusion chromites and other indicator minerals had been detected by microprobe before, this is the first time that pyropes have been found on the Shulin Lake property. This is likely due to the fact that hole 22 is drilled into the pipe-like anomaly. The pyropes and the pipe-like anomalies detected by the recent re-evaluation of the magnetic survey are the last two pieces of the puzzle needed to confirm the excellent diamond potential of the property.

The company is excited about the progress made of late, with further results expected in early January and a major drill program planned to start in February, 2005.

The project is a joint venture between Golconda (51%), Shulin Lake Mining, a private company (39.8%), and another company holds 9.2%. G. Liedtke and G. Jacob are the designated qualified persons responsible for exploration on the project.

On behalf of Golconda Resources Ltd.,

“Guenter Liedtke”

Guenter J. Liedtke, President

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

Golconda Resources Ltd. (TSX VENTURE:GA)

Contact Information

Guenter Liedtke

President

Golconda Resources Ltd.

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