Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

January 16, 2008 08:30 ET

Grayd Announces La India Gold Resource

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Grayd Resource Corporation (TSX VENTURE:GYD) is pleased to provide the first resource calculation on its 100% owned La India gold project located in Sonora State, Mexico. Inferred resources for all zones total 936,000 ounces (36.8 million tonnes at a grade of 0.79 g/t Au), including 708,000 ounces of oxide (28.1 million tonnes at a grade of 0.78 g/t Au), at a cut-off of 0.4 g/t Au. The inferred resource calculation was completed on separate block models for 3 zones including Viruela-La Cruz, Cerro de Oro, and Cieneguita. Cerro de Oro is interpreted as a down faulted block of a continuous zone of gold mineralization that includes the Viruela-La Cruz zone. Style of mineralization at Cieneguita is similar to Viruela and located 2.5 km to the north. Calculations from the combined block models indicate that 93% of the total inferred oxide resource starts at or near surface and is entirely oxide. Only 7% of the total oxide material is mixed with sulphide material where drill density did not allow for a detailed model of the oxide shape. Tables showing tonnage, grade and contained gold for various cut-offs are given in tables below. A map is attached below and also posted on the Company's website at www.grayd.com.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/Grayd%20Map.pdf

Results from six bottle roll leach tests of oxide material varied between 92% and 96% gold recovery. Six composites of oxide material from diamond drill holes are currently undergoing metallurgical testing, including column leach tests, to assess the suitability of heap leach gold recovery methods. Preliminary testing on sulphide material indicated that relatively high gold recovery may be achieved in a flotation concentrate. In two samples tested, 94% of the contained gold reported to the rougher flotation concentrate. Further test work on sulphide material is planned.

The resource zones are open for expansion and thus Grayd will be initiating the next phase of drilling immediately to potentially expand the current resource. Additional drilling is also planned within the area of the current resource to follow-up on the high Au grades cut in the current calculation to determine if significant amounts of higher grade material exist. For example, an area in the Cieneguita Zone with 1.5 m long samples from the same geological position assaying 128 g/t Au and a 111 g/t Au in holes 50 m apart will be drilled at 25 m centers. (These assays were cut to 11.3 g/t Au as they were anomalously high compared to assays throughout the zone). Areas in the Viruela - La Cruz zone will also be drilled in more detail to determine whether it is possible to better define the boundary between low grade and higher grade silica zones, resulting in a lower tonnage but higher grade resource. This drilling will be an important component to bringing the inferred resource into higher resource categories.

Six previously defined targets that are proximal to the current resource zones (between 250 m to 2000 m away) will be drilled. Three large alteration systems (Tarachi, Pilar and a newly defined zone in the southwest part of the property) will be mapped and sampled with a goal of having drill targets by this summer. Field crews will also continue exploring the remainder of the 260 square kilometre project area.

Results from the metallurgical test work are expected in about two months. If results are favourable, preliminary engineering and cost estimates will be made to allow a Preliminary Economic Assessment (Scoping Study) to be completed on the project.

Input into the resource model included 13,656 samples from 232 drill holes, a 3-dimensional geological model developed by Grayd and a newly created 2 m contour elevation model. Assays are predominately from 1.5 m long reverse circulation samples drilled in dry hole conditions. The resource was calculated independently for different rock domains in the 3 zones, and then the total resources per zone and for all zones was tabulated. A total of 66 samples ranging from a high of 128.5 g/t Au were capped, with capping levels dependent upon the gold grade distributions within the different rock domains. Silver values as well as arsenic, copper, zinc and lead values are very low in the oxide material. Within the sulphide material, they were not considered economically significant enough to include in the initial resource calculation.

The resource calculation was completed by Independent Qualified Person Gary Giroux, P.Eng. of Giroux Consultants, Vancouver, B.C. using Ordinary Kriging of blocks 20 x 20 x 5 m in dimension. Assay database verification and QA/QC and geological model verification was completed by Independent Qualified Person Matthew Gray, Ph.D., C.P.G. of Resource Geoscience de Mexico, Hermosillo, Sonora. Mr. Gray's work included comparing original assay certificates obtained independently from ALS Chemex Laboratories with the resource database. Bulk density was determined using Specific Gravity measurements on pieces of drill core by Kappes, Cassiday & Associates (KCA) of Reno, Nevada. KCA is also conducting the current metallurgical test work. A 43-101 report authored by Giroux and Gray will be posted on sedar and the Company's website within the next two weeks.



La India Resource Tables

ALL ZONES CLASSED INFERRED
----------------------------------------------------------------------
Au Tonnes greater Grade greater
Cutoff than Cutoff than Cutoff
----------------------------------------------------------------------
Au
(g/t) (tonnes) (g/t) Au (grams) Au Ounces
----------------------------------------------------------------------
0.10 196,710,000 0.301 59,300,000 1,906,000
----------------------------------------------------------------------
0.20 92,440,000 0.482 44,500,000 1,432,000
----------------------------------------------------------------------
0.30 55,490,000 0.641 35,600,000 1,143,000
----------------------------------------------------------------------
0.40 36,790,000 0.791 29,100,000 936,000
----------------------------------------------------------------------
0.50 26,130,000 0.933 24,400,000 783,000
----------------------------------------------------------------------
0.60 19,730,000 1.058 20,900,000 671,000
----------------------------------------------------------------------
0.70 14,860,000 1.192 17,700,000 569,000
----------------------------------------------------------------------
0.80 11,630,000 1.315 15,300,000 492,000
----------------------------------------------------------------------
0.90 9,220,000 1.438 13,300,000 426,000
----------------------------------------------------------------------
1.00 7,490,000 1.550 11,600,000 373,000
----------------------------------------------------------------------


ALL ZONES OXIDES CLASSED INFERRED
----------------------------------------------------------------------
Au Tonnes greater Grade greater
Cutoff than Cutoff than Cutoff
----------------------------------------------------------------------
Au
(g/t) (tonnes) (g/t) Au (grams) Au Ounces
----------------------------------------------------------------------
0.10 92,030,000 0.369 34,000,000 1,092,000
----------------------------------------------------------------------
0.20 56,270,000 0.515 29,000,000 933,000
----------------------------------------------------------------------
0.30 37,610,000 0.648 24,400,000 783,000
----------------------------------------------------------------------
0.40 26,170,000 0.781 20,400,000 657,000
----------------------------------------------------------------------
0.50 19,060,000 0.906 17,300,000 555,000
----------------------------------------------------------------------
0.60 14,400,000 1.022 14,700,000 473,000
----------------------------------------------------------------------
0.70 10,870,000 1.144 12,400,000 400,000
----------------------------------------------------------------------
0.80 8,410,000 1.259 10,600,000 340,000
----------------------------------------------------------------------
0.90 6,550,000 1.376 9,000,000 290,000
----------------------------------------------------------------------
1.00 5,260,000 1.481 7,800,000 250,000
----------------------------------------------------------------------


ALL ZONES SULPHIDES CLASSED INFERRED
----------------------------------------------------------------------
Au Tonnes greater Grade greater
Cutoff than Cutoff than Cutoff
----------------------------------------------------------------------
Au
(g/t) (tonnes) (g/t) Au (grams) Au Ounces
----------------------------------------------------------------------
0.10 98,360,000 0.233 22,900,000 736,000
----------------------------------------------------------------------
0.20 32,810,000 0.413 13,600,000 436,000
----------------------------------------------------------------------
0.30 15,580,000 0.605 9,400,000 303,000
----------------------------------------------------------------------
0.40 8,720,000 0.809 7,100,000 227,000
----------------------------------------------------------------------
0.50 5,520,000 1.021 5,600,000 181,000
----------------------------------------------------------------------
0.60 4,020,000 1.200 4,800,000 155,000
----------------------------------------------------------------------
0.70 2,950,000 1.401 4,100,000 133,000
----------------------------------------------------------------------
0.80 2,400,000 1.550 3,700,000 120,000
----------------------------------------------------------------------
0.90 2,080,000 1.659 3,500,000 111,000
----------------------------------------------------------------------
1.00 1,770,000 1.782 3,200,000 101,000
----------------------------------------------------------------------


ALL ZONES MIXED CLASSED INFERRED
----------------------------------------------------------------------
Au Tonnes greater Grade greater
Cutoff than Cutoff than Cutoff
----------------------------------------------------------------------
Au
(g/t) (tonnes) (g/t) Au (grams) Au Ounces
----------------------------------------------------------------------
0.10 6,240,000 0.389 2,400,000 78,000
----------------------------------------------------------------------
0.20 3,530,000 0.572 2,000,000 65,000
----------------------------------------------------------------------
0.30 2,380,000 0.731 1,700,000 56,000
----------------------------------------------------------------------
0.40 1,890,000 0.833 1,600,000 51,000
----------------------------------------------------------------------
0.50 1,570,000 0.911 1,400,000 46,000
----------------------------------------------------------------------
0.60 1,270,000 0.998 1,300,000 41,000
----------------------------------------------------------------------
0.70 980,000 1.102 1,100,000 35,000
----------------------------------------------------------------------
0.80 770,000 1.197 900,000 30,000
----------------------------------------------------------------------
0.90 580,000 1.310 800,000 24,000
----------------------------------------------------------------------
1.00 490,000 1.382 700,000 22,000
----------------------------------------------------------------------


INFERRED RESOURCE OF EACH ZONE AT 0.4 g/t Au CUTOFF
-----------------------------------------------------------------------
Au
Cutoff Grade greater than Cutoff
-----------------------------------------------------------------------
Au Au
Zone Oxidation (g/t) (tonnes) (g/t) Au (grams) Ounces
-----------------------------------------------------------------------
Cieneguita Oxide 0.40 8,140,000 0.758 6,200,000 198,000
-----------------------------------------------------------------------
Cieneguita Sulphide 0.40 120,000 0.754 90,000 2,900
-----------------------------------------------------------------------
Cerro De Oro Oxide 0.40 2,150,000 1.024 2,200,000 71,000
-----------------------------------------------------------------------
Cerro De Oro Sulphide 0.40 30,000 0.783 23,000 800
-----------------------------------------------------------------------
Viruela - Oxide 0.40 15,880,000 0.760 12,100,000 388,000
La Cruz
-----------------------------------------------------------------------
Viruela - Mixed 0.40 1,890,000 0.854 1,600,000 52,000
La Cruz
-----------------------------------------------------------------------
Viruela - Sulphide 0.40 8,570,000 0.810 6,900,000 223,000
La Cruz
-----------------------------------------------------------------------


La India Project - Drill Summary

Recently received assay results from 10 holes totalling 460.3 m not previously released are hereby disclosed. Holes RC07-247 and 248 were drilled west of the Viruela Zone. Holes RC07-249 through 256 were drilled in the Cieneguita Zone and are included in the resource database. Grayd drilled an additional 17 holes in late 2007. Results are pending.



---------------------------------------------------------------------------
Len-
gth From To Width Au Com-
Zone Hole East North Az Dip (m) (m) (m) (m) (g/t) ments
---------------------------------------------------------------------------
Ciene- RC-07-
guita 256 706258 3178742 0 -90 47.2 1.5 47.2 45.7 0.47
---------------------------------------------------------------------------
Ciene- RC-07-
guita 255 706249 3178699 0 -90 47.2 3.0 33.5 30.5 0.42
---------------------------------------------------------------------------
Ciene- RC-07-
guita 254 706252 3178821 90 -70 53.3 0.0 39.6 39.6 0.28
---------------------------------------------------------------------------
Ciene- RC-07-
guita 253 706357 3178948 90 -70 50.3 6.1 21.3 15.2 2.31
---------------------------------------------------------------------------
Ciene- RC-07-
guita 252 706275 3179073 92 -70 38.1 27.4 35.1 7.6 1.29
---------------------------------------------------------------------------
Ciene- RC-07-
guita 251 706306 3179052 90 -70 7.6 hole abandoned
---------------------------------------------------------------------------
Ciene- RC-07-
guita 250 706247 3178959 90 -70 56.4 45.7 54.9 9.1 3.92 cut
---------------------------------------------------------------------------
45.7 54.9 9.1 22.8 uncut
---------------------------------------------------------------------------
Ciene- RC-07-
guita 249 706268 3178848 90 -70 13.7 hole abandoned
---------------------------------------------------------------------------
Viru-
ela - RC-07-
West 248 706335 3176725 0 -90 86.9 no significant intersection
---------------------------------------------------------------------------
Viru-
ela - RC-07-
West 247 706405 3176499 270 -70 59.4 39.6 57.9 18.3 1.29
---------------------------------------------------------------------------


Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India. Samples are sent to the ALS Chemex facility in Hermosillo, Mexico for sample preparation, and then to the ALS Chemex laboratory in Vancouver, British Columbia for gold assay and ICP. QA/QC procedures used include assay standards and blanks.

Grayd Resource Corporation is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in Mexico which is highly prospective for gold and silver mineralization. The Company's Officers and Directors are very experienced in all aspects of mineral exploration, development and production and have been involved with several successful mining projects over the past 20 years.

Forward Looking and other Cautionary Information

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

Information Concerning Estimates of Measured, Indicated and Inferred Resources

This news release also uses the term 'inferred resources'. Grayd Resource Corporation advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize the term. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Grayd Resource Corporation
    Marc A. Prefontaine
    President and CEO
    (604) 681-7446
    (604) 684-9877 (FAX)
    Website: www.grayd.com