Greystar Resources Ltd.

Greystar Resources Ltd.

July 20, 2009 02:00 ET

Greystar Acquires Key Surface Rights at Angostura

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2009) - Greystar Resources Ltd. ("Greystar" or the "Company") (TSX:GSL)(AIM:GSL) reports that it has purchased the final surface rights required for the envisioned mine development of its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia.

"Greystar has been very aggressively pursuing surface right purchases since 2005," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "In addition to covering those areas of mine infrastructure, we have also acquired the surface rights to promising exploration targets in the Mongora, Animas and Violetal areas of the Angostura project. In total, Greystar now owns 3,538.7 hectares (8,744.3 acres) of surface rights and approximately 30,000 hectares of mineral rights thereby assuring that the ownership is in place to proceed with project construction, which is anticipated in the middle of 2010."

The latest and most important surface rights acquisition comprised 1,034 hectares of land that covers the proposed location of one of the two major heap leach pads and most of the waste rock storage site. The transaction involved numerous local families.

On the technical front, the Angostura Feasibility Study, which is scheduled for completion by year-end, is well underway with all technical contracts having been awarded.

The Feasibility Study includes three very well defined stages: Optimization, Design and Financials. Each of which look to improve the technical and financial parameters defined in the Prefeasibility study, while reducing the risk on all fronts. The expected level of accuracy is +/- 15%, and the Feasibility Study will include basic engineering in all disciplines. The final report of the Feasibility Study will be the basis for project financing.

At the same time, the Environmental and Social Impact Study ("EIS") has been awarded and is underway. The EIS is also scheduled to be done by year end, in order to file the report in the Colombian Environmental Ministry.

The following are the companies and functions being developed in the Feasibility Study.

GRD Minproc Principal Major engineering company that is the 19,970
Ingenieria y Consultant, primary consultant for the Feasibility
Construccion Process & Study. Primary role is to optimize the
Ltda. Chile Engineering process selection, develop the process
("Miniproc") design, design the general infrastruc-
Santiago, Chile ture and compile all others studies
carried out in parallel with the
Feasibility Study.
NCL Ingenieria y Resources, NCL is a consulting company 2,090
Construccion Mine Design specializing in mining engineering and
Santiago, Chile & Planning has worked in more than 18 countries
on five continents. NCL will revise
and validate the mining resources
model, the pit design and the mining
plan and the waste dump design all at
a Feasibility Study level.
Vector Leach Pad Vector provides engineering and 7,120
Lima, Peru Design environmental support services for
projects in South America. Vector will
elaborate the heap leach design at a
Feasibility Study level.
McClelland Metallur- McClelland is providing consulting and N/A
Laboratories, gical Test metallurgical testing for the project
Inc. including Heap Leach evaluation, pulp
Sparks, Nevada, agglomeration testing, solid/liquid
USA separation testing, comminution indexes
determination, environmental
characterization, and roasting testing
(through Hazen Research / Colorado
USA) and ultrafine grinding (through
G&T / B.C. Canada).
SGS Lakefield Flotation SGS Chile is providing mineralogical N/A
Research Chile Test characterization of sulfides and
SA flotation optimization testwork.
Santiago, Chile
Geoblast Geotech- Hydrogeological & geotechnical studies 4,806
Santiago, Chile nical of the pit, waste dump, crushing and
& Hydro- milling area, and the industrial area.
iC Consulenten
Water Services
Santiago, Chile
Vector Run-off Vector will be in charge of Water 8,094
Lima, Peru Water Management, Water Balance and Water
Management, Impoundment Design.
Balance &
Belzile Solutions Selective Perform a study on selective mining 160
Val Dor, Quebec, Mining and grade control procedures at the
Canada Angostura Project.
Vector - Lima, Environ- Vector and Ingetec will complete the N/A
Peru & Ingetec mental Environmental Impact Study for the
Ingenieria y Impact project.
Diseno S.A. Study
Bogota, Colombia
Gradex SA Contin- Local Company dedicated to 8,777
Bucaramanga, uation of environmental studies and
Colombia the LBA and environmental planning. Will be
LBA of the working on the second part of the
reservoir environmental baseline.

Based on the December 2008, resource update estimation, the Angostura deposit hosts a measured resource of 148.9 million tonnes grading 0.78 gram gold for 3.736 million contained ounces of gold; an indicated resource of 182 million tonnes grading 1.34 grams gold for 7.813 million contained ounces of gold. Combined, the measured and indicated resources host 11.5 million ounces of gold in 330.9 million tonnes of material grading 1.09 grams gold per tonne, plus an inferred resource of 3.472 million ounces of gold in 90.8 million tonnes grading 1.11 grams gold per tonne. Resource estimation was undertaken in compliance with CIM mineral resource and mineral reserve definitions that are referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. A location map of the Angostura drilling, along with a map of the underground tunnel work and an updated concession map, can be accessed from the Company's home page link at Greystar's website (


The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff (which includes a qualified person, Frederick Felder, P.Geo., for the purpose of National Instrument 43-101, and Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects). Frederick Felder, P.Geo., has over 30 years of mineral exploration experience, is a member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia and is the qualified person responsible for this release.

The Company has implemented a quality control program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. Under these quality assurance measures, drill core is sawn into halves with one half of the core prepped on site and samples shipped to ALS-Chemex Laboratory (ISO 9002 registered) in Vancouver, B.C. for analysis. The remainder of the core is retained for future assay verification. Gold analysis is conducted by fire assay (one assay tonne) using an atomic absorption finish. The laboratory re-assays using the ALS-Chemex protocol, and additional checks may be run on anomalous values. Greystar has independent re-analysis and sample preparation checks run at other accredited laboratories. The Company also introduces background blanks prepared from previously analyzed core samples from the Angostura Project.

Cautionary Note Regarding Forward-Looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of Canadian securities legislation. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold prices, results, mineral resources and anticipated grades. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, resource estimates, exploration, development and operating risks, limited experience with development-stage mining operations, dependence on one principal exploration stage property, political and foreign risk, uninsurable risks, competition, production risks, environmental regulation and liability, government regulation, currency fluctuations, potential title disputes and dependence on key employees as set out under the heading "Risk Factors" in the Annual Information Form of the Company dated March 31, 2009 which is available in SEDAR. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Greystar Resources Ltd. - Contact in Canada
    David B. Rovig
    (406) 245-9520
    Greystar Resources Ltd. - Contact in Canada
    Mr. Andreas Curkovic
    Investor Relations
    (416) 577-9927
    NCB Stockbrokers Limited - Contact in London
    Christopher Caldwell
    +44 (0) 20 7071 5200