Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

November 20, 2009 07:30 ET

Grayd Increases Gold Recoveries at La India

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 20, 2009) - Grayd Resource Corporation (TSX VENTURE:GYD) today reported that recently completed test work has increased the estimated overall recovery of gold to between 80% and 84% for its wholly owned La India heap leach gold project located in Sonora State, Mexico.

Grayd's President and Chief Executive Officer, Marc Prefontaine, said, "This is very good news for the economics of the La India gold project. These most recent tests indicate not only improved recoveries, but also that the crush size for the rock can be larger, which could save significant operating costs."

The updated overall recovery estimates on the resource was determined by Grayd and are based on seven new column leach tests completed at Kappes, Cassiday & Associates (KCA) of Reno, Nevada, in conjunction with the results from previous test work at KCA reported on August 11, 2008. The new tests were undertaken to better quantify recoveries and optimal crush size on rock types which contain significant amounts of oxide gold in the current resource.

Two of the new composite samples were comprised of material from five core holes drilled in the North Zone. Each composite was tested at -25 mm (-1 inch) and -9.5 mm (-3/8 inch). Recoveries were 96% and 97% at -25 mm and slightly lower at 95% and 93% for the finer -9.5 mm crush size. One composite was made up of core from five drill holes in the Main Zone and was tested at the same two crush sizes. It had recoveries of 80% at -25 mm and 79% at -9.5 mm. One sample of high grade material from within a structurally controlled feeder in the Main Zone was tested at -9.5 mm and had a recovery of 94%.

KCA normally discounts laboratory gold recoveries by two to three percentage points when estimating field recoveries. Based on the relative volumes of different rock types in the current resource and the results of the recent and 2008 tests, an average gold recovery in the range of 80% to 84% is indicated for a heap leach processing operation at La India. The similarity in recoveries for the two crush sizes is important economically as it indicates that the material tested will only need to be crushed to - 25mm (-1 inch). Additional test work on other rock types at the -25 mm size will be undertaken. Most of the gold was recovered in the first 20 days of leaching, although the columns were leached for 91 to 104 days. Lime and cyanide consumptions were relatively low. These are all positive factors for the economics of a potential mine.

Material for the tests was collected by Grayd from the remaining half-core of holes drilled in 2008. Samples were sent to the KCA laboratory in Reno where composites were created. In addition to the column leach tests, KCA undertook a series of grade, physical and environmental analyses. Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India. Test work at KCA was under the supervision of Terence Albert, Manager of Laboratory Services and Daniel Kappes, P.Eng., Qualified Person for KCA. Maps showing the location of the drill holes where samples were taken from are posted on Grayd's website (www.grayd.com).



Summary of 2009 Column Leach Tests

---------------------------------------------------------------------------
Weighted Addi-
Calcu- Avg. tion
Sample lated Extrac- Tail Consum- Hydr- Addi-
Identi- Head, ted, Screen, Extrac- Crush Days ption ated tion
fica- gms gms gms ted, Size, of NaCN, Lime, Cement,
tion Au/MT Au/MT Au/MT % Au mm Leach kg/MT kg/MT kg/MT
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Main
Zone
SV-SA 1.65 1.32 0.33 80% -25 91 0.81 2.01 0.00
---------------------------------------------------------------------------
Main
Zone
SV-SA 1.55 1.22 0.33 79% -9.5 104 0.77 0.00 3.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Main
Zone-
High
Grade 13.25 12.47 0.78 94% -9.5 91 1.60 0.00 2.99
---------------------------------------------------------------------------
---------------------------------------------------------------------------
North
Zone
SM-CE 1.08 1.04 0.04 96% -25 91 0.82 2.01 0.00
---------------------------------------------------------------------------
North
Zone
SM-CE 1.09 1.03 0.06 95% -9.5 104 0.92 0.00 3.01
---------------------------------------------------------------------------
---------------------------------------------------------------------------
North
Zone
SM-ES 1.16 1.12 0.04 97% -25 91 0.88 2.10 0.00
---------------------------------------------------------------------------
North
Zone
SM-ES 1.04 0.97 0.07 93% -9.5 104 0.83 0.00 2.98
---------------------------------------------------------------------------


The La India gold project is located in the prolific Mulatos gold belt of Mexico's Sonora State. The project has a NI43-101 compliant gold resource of 559,000 ounces grading 1.01 g/t in the indicated category and 318,000 ounces grading 1.05 g/t in the inferred category, all at a 0.5 g/t cut-off grade. The resource consists of 17.2 and 9.4 million tonnes of indicated and inferred material, respectively. This same district hosts Alamos Gold's Mulatos mine, which produced 151,000 ounces of gold in 2008 and had a reported resource of 4.75 million ounces of gold at the end of 2008.

Grayd Resource is a growth-oriented junior natural resource company focused primarily on identifying, exploring and developing precious metal deposits. The Company's Officers and Directors are very experienced in all aspects of mineral exploration, development and production and have been involved in a number of successful mining projects around the world over the past 20 years.

The information in this news release may contain forward-looking statements. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expression are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change.

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)
    www.grayd.com