Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

October 31, 2007 09:00 ET

Grayd Resource Corporation: Drilling Expands Potential at La India Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2007) - Grayd Resource Corporation (TSX VENTURE:GYD) is pleased to provide an update on drilling on its 100% owned La India Gold Project, Sonora State, Mexico. Recent drilling has expanded the Viruela - La Cruz mineralization in two areas plus opened up the possibility for discovering gold mineralization at lower elevations:

- Three holes drilled in the gap between the La Cruz and Viruela zones intersected near surface oxide gold mineralization: RC07-234 returned 16.8 m grading 3.16 g/t Au; RC07-244 returned 24.4 m grading 1.70 g/t Au: and RC07-233 intersected 30.5 m grading 0.48 g/t Au. These holes are within a triangular shaped area 300 m long and 250 m wide at the north end.

- Three holes drilled on the northeast extent of the La Cruz zone intersected near-surface oxide gold mineralization, including RC07-230 with 25.9 m averaging 1.35 g/t tonne, extending the zone an additional 50 m.

- A new gold-bearing horizon has been discovered at depth below the Viruela, at what is postulated to be the stratigraphic equivalent of the La Cruz zone. Hole RC07-238 intersected 18.2 m averaging 0.28 g/t Au in a silicified, partially oxidized, unit starting at 157 m depth. This horizon may be the same as one intersected in a new road cut on the north slope of the Viruela hill 450 to the north. Sampling on the new road is currently in progress.

Results for an additional 25 holes totalling 2,595 m have been received (RC07-221 - 246) and are reported herein. In addition to the holes reported above, six holes were drilled in the La Cruz zone. RC07-229 and 235 were drilled to test possible high grade areas within the La Cruz zone but failed to intersect high gold values. RC07-236, 237 and 243, drilled in the southwest part of the La Cruz zone, intersected low grade, near-surface oxide gold mineralization. RC07-246, drilled on a zone with a surface barite-bearing breccia southwest of the La Cruz zone, intersected altered rock but had no significant gold values.

Three holes were drilled in an area with potential near-surface oxide mineralization south of La Cruz. Only narrow gold intersections were encountered. Eleven holes were drilled in the Viruela zone. Seven holes were drilled within the area of previous drilling to confirm geological interpretations and to provide sufficient density of drilling for a resource calculation. Four holes drilled peripheral to previous drilling did not extend the zone.

Drilling has been temporarily suspended until early November as blasting of outcrop with hard silica alteration is required to build roads and drill pads in important target areas in the Cerro de Oro and Viruela zones, and to the north of Viruela. In addition to these planned holes, additional holes will be drilled to follow-up on the intersections between the Viruela and La Cruz zones.

The diamond drill program was completed in October, with 2,100 m of HQ and 85 m of PQ diameter core drilled in 29 holes. Most holes were drilled as twins of RC holes to improve geological information and sample methodology. Core was split with a rock saw and samples have all been sent for analysis. Seven holes, including both HQ and PQ core, will be sent to Kappes, Cassiday & Associates in Reno Nevada for column leach and other metallurgical test work. These tests are necessary steps in developing a bulk mineable oxide gold deposit with cyanide heap leach and CIL processes in gold recovery at La India.

A summary of the most recent drill intercepts is provided in the table below and drill plan map attached. The drill plan map is also posted on the Company's website at www.grayd.com.



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Azim- Length From To Width Au
Zone Hole East North uth Dip (m) (m) (m) (m) g/t
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La Cruz RC-07-246 706840 3176012 0 -90 73.2 no significant
intersection
Viruela RC-07-245 706962 3176449 271 -60 91.4 38.1 68.6 30.5 1.30
Vir-La RC-07-244 707199 3176530 0 -90 182.9 56.4 80.8 24.4 1.70
Cruz
La Cruz RC-07-243 707144 3176130 135 -60 140.2 0.0 24.4 24.4 0.62
La Cruz RC-07-242 707244 3176060 0 -90 41.2 13.7 16.8 3.1 0.80
- South
La Cruz RC-07-241 707334 3176128 0 -90 44.2 0.0 6.1 6.1 0.66
- South
La Cruz RC-07-240 707317 3176052 0 -90 41.2 no significant
- South intersection
Viruela RC-07-239 707088 3176283 0 -90 163.1 no significant
intersection
Viruela RC-07-238 707103 3176373 0 -90 196.6 157 175.3 18.2 0.28
La Cruz RC-07-237 707025 3176186 316 -60 59.4 15.2 54.9 39.6 0.57
La Cruz RC-07-236 706984 3176086 0 -90 141.7 9.1 53.3 44.2 0.32
La Cruz RC-07-235 707300 3176220 315 -70 65.5 no significant
intersection
Vir-La RC-07-234 707231 3176427 134 -53 163.1 51.8 68.6 16.8 3.16
Cruz
Vir-La RC-07-233 707221 3176343 0 -90 120.4 62.5 93.0 30.5 0.48
Cruz
La Cruz RC-07-232 707349 3176516 316 -50 91.4 19.8 22.9 3.1 1.90
La Cruz RC-07-231 707353 3176513 0 -90 89.9 10.7 29.0 18.3 0.42
La Cruz RC-07-230 707354 3176511 135 -50 77.7 24.4 50.3 25.9 1.35
La Cruz RC-07-229 707347 3176380 316 -50 120.4 91.4 109.7 18.3 0.37
Viruela RC-07-228 706727 3176542 0 -90 47.2 no significant
intersection
Viruela RC-07-227 707076 3176592 0 -90 120.4 no significant
intersection
Viruela RC-07-226 706956 3176577 0 -90 175.3 0.0 42.7 42.7 0.43
Viruela RC-07-225 706953 3176413 200 -55 80.8 7.6 70.1 62.5 0.34
Viruela RC-07-224 706754 3176502 0 -90 59.4 7.6 24.4 16.8 0.80
Viruela RC-07-223 706798 3176463 270 -50 61.0 no significant
intersection
Viruela RC-07-222 706800 3176406 90 -50 61.0 no significant
intersection
Viruela RC-07-221 706854 3176369 180 -70 86.9 19.8 32.0 12.2 2.30
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La India Project - Drill Summary

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 for sample preparation, and then to the ALS Chemex laboratory in Vancouver for gold assay and ICP. QA/QC procedures used include assay standards and blanks.

Grayd Resource 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.

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 expressions 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.

To view the map accompanying this release please click on the following link: http://www.ccnmatthews.com/docs/gyd1031.pdf

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