Grayd Resource Corporation

Grayd Resource Corporation
Gold Reach Resources Ltd.

Gold Reach Resources Ltd.

January 18, 2005 08:30 ET

Grayd Resource: Gold Reach Resources Announce Discovery of Copper-Gold Porphyry at Seel; Drill Hole S 04-4 Intersects 148m Grading 0.29% Cu and 0.27 g/t Au


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GRAYD RESOURCE CORPORATION

TSX VENTURE SYMBOL: GYD



AND GOLD REACH RESOURCES LTD.

NEX BOARD SYMBOL: GRH.H

JANUARY 18, 2005 - 08:30 ET

Grayd Resource: Gold Reach Resources Announce
Discovery of Copper-Gold Porphyry at Seel; Drill Hole
S 04-4 Intersects 148m Grading 0.29% Cu and 0.27 g/t Au

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2005) - Grayd
Resource Corporation (TSX VENTURE:GYD) and Gold Reach Resources Ltd.
(NEX: GRH.H) are pleased to announce that diamond drilling has
discovered a near surface copper-gold porphyry system at the Seel
property located in central British Columbia.

Hole S04-4, one of six holes drilled in December 2004, intersected 148 m
grading 0.29% Cu and 0.27 g/t Au. Disseminated pyrite and chalcopyrite
occur within a highly altered intrusive from the start of bedrock at 35
m and continue to the end of the hole. Copper grades range from 0.09 to
0.93% and gold grades range from 0.01 to 0.82 g/t throughout the hole.
There is a strong correlation between Cu and Au grades (1:1 ratio, 0.1
g/t Au for every 0.1% Cu).

This hole was one of six holes drilled in December 2004 within a 1200 m
long by 800 - 1300 m wide coincident high-chargeability low-resistivity
anomaly outlined in an Induced Polarization (IP) geophysical survey
completed in October 2004. The diamond drill program was designed to
test a previously known copper-gold breccia zone and to test the
potential for a large bulk mineable deposit. All holes intersected
volcanic and intrusive rocks exhibiting strong alteration of the type
commonly associated with porphyry deposits. Analytical results have been
returned from the first four holes.

Holes S04-1 and 2 tested the breccia zone on the north end of the IP
anomaly, returning 24 m grading 0.40% Cu, (including 3 m @ 1.79% Cu) and
19.5 m grading 0.51% Cu, (including 6.9 m @ 0.93% Cu). These holes
continued beyond the breccia to test for bulk mineable mineralization.
Both holes intersected highly altered rock with abundant pyrite, but no
significant copper mineralization was encountered.

Hole S04-3 intersected intermittent copper-gold mineralization while
testing an area of strong chargeability. Based on the observation of
chalcopyrite in S04-3, the drill was subsequently turned around 180
degrees for hole S04-4 to test an area of moderate chargeability
flanking the high to the southeast and successfully vectored in on more
consistent copper mineralization. To date, only selected samples have
been taken from S04-3. Core lengths ranged from 0.3 to 2.0 m with copper
grades ranging from 0.02% - 0.59% and gold grades ranging from 0.03 -
0.40 g/t. Additional samples will be analyzed from this hole.



----------------------------------------------------------------------
Azi-
muth Dip Hole Inter-
(deg- (deg- Length From To val Cu Au Mo
Hole # rees) rees) (metres) (m) (m) (m) (%) (g/t) (%)
----------------------------------------------------------------------
S 04-1 315 -50 210.3 29.00 53.00 24.00 0.40 0.04 0.000
includ-
ing 31.00 34.00 3.00 1.79 0.04 0.000
----------------------------------------------------------------------
S 04-2 135 -50 182.9 43.40 46.40 3.00 0.60 0.03 0.000
and 49.15 68.50 19.35 0.51 0.05 0.000
includ-
ing 49.15 56.00 6.85 0.93 0.04 0.000
----------------------------------------------------------------------
S 04-3 315 -50 178.3 33.50 35.50 2.00 0.37 0.34 0.001
and 60.50 62.20 1.70 0.47 0.26 0.001
----------------------------------------------------------------------
S 04-4 135 -70 182.9 35.00 182.95 147.95 0.29 0.27 0.008
----------------------------------------------------------------------


Holes S04-5 and 6 were drilled 500 metres to the west of holes 3 and 4
to test another area within the large IP anomaly with assays pending.

Drilling has resumed on the property following the holiday break to
complete the initial 1,500 m program. Three additional holes will be
completed to follow up on the intersection in S04-4 and are being
designed to continue vectoring in on the heart of this newly discovered
porphyry system. Similar chargeability to that associated with S04-4 can
be traced throughout the 1.2 km long IP anomaly. Further results from
the 2004-2005 drill program will be released in entirety upon completion
of the program.

Grayd and Gold Reach are pleased that a broad copper intersection was
discovered so early in the drill program and are particularly encouraged
that gold is associated with the copper mineralization. The copper-gold
grades in the S04-4 intersection can be compared to the reserves
remaining at the operating 20,000 tonne per day Huckleberry mine
(located 7 km away across the Thatsa Reach) which are quoted at 25
million tonnes of 0.51% Cu, 0.06 g/t Au and 0.014% Mo (information from
Imperial Metals-Huckleberry Mines website). The remaining reserves
reported by Northgate Minerals Corp. at the Kemess mine are 92 million
tonnes at 0.23% Cu and 0.70 g/t Au for Kemess South and a resource of
414 million tonnes at 0.16% Cu and 0.31 g/t Au for Kemess North
(information from Northgate Minerals Corp. website).

The diamond drill holes were drilled NQ diameter, excepting the top of
the holes through the breccia zone which were drilled HQ diameter. Core
was halved using a diamond rock saw to cut the core. Half-core samples
were sent to Acme Analytical Labs's facility in Vancouver, B.C. for
sample preparation and analysis. All samples underwent multi-element
analysis by ICP/MS. The breccia zones in holes S04-1 and 2 and all
samples from hole S04-4 were also assayed for gold and copper. A sample
quality control/quality assurance program is in place. The diamond drill
program is under the supervision of Hans Smit, P.Geo., Vice-President
Exploration for Grayd Resource Corporation, a qualified person under NI
43-101.

Gold Reach can earn a 61% interest in the Seel property by incurring
$1,000,000 in exploration expenditures before December 31, 2006. Once
Gold Reach has vested, Grayd has 60 days to elect to earn back 10% of
the interest by incurring the next $250,000 in exploration expenditures
(effectively forming a 51% Gold Reach - 49% Grayd Joint Venture). During
the earn-in period, Grayd is the operator.

A drill hole location map is attached and can also be viewed on both
company's websites along with additional information at www.grayd.com
and www.goldreachresources.com.

To view the map accompanying this press release please click on the
following link:
http://www2.ccnmatthews.com/database/fax/2000/GYD0118.pdf.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grayd Resource Corporation
    Marc A. Prefontaine, M.Sc., P.Geo.
    President and CEO
    (604) 681-7446
    (604) 684-9877 (FAX)
    Website: www.grayd.com
    or
    Freeform Communications Inc.
    Scott Young
    (778) 371-9100 - ext. 1220
    or
    Gold Reach Resources Ltd.
    Mike Sieb, B.Sc., MBA
    Director
    (604) 331-2263
    Website: www.goldreachresources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this news
    release.