Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

June 05, 2006 23:00 ET

Greystar Reports: Step-Out Hole Yields 74.16 g/t Gold Over 3 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 5, 2006) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that additional step-out drilling in the Veta de Barro, Los Laches and El Pozo areas is continuing to intersect higher-grade gold structures within much broader zones of mineralization that are so indicative of its wholly-owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia.

"These higher-grade shoots are important because they represent a very significant component of the contained gold in the Angostura resource," states Greystar's Executive Vice President, Frederick Felder, "and so it is encouraging to see results like 74.16 grams gold per tonne over 3 metres being intercepted as we expand the footprint of the large mineralizing system, while continuing to encounter values like 26.96 grams gold per tonne over 5 metres in the more central area of the deposit."

The latest drill results from eighteen new holes generated 98 intercepts grading greater than 0.5 gram gold per tonne over widths varying from 3 to 39 metres and have greatly enhanced the geological knowledge of the Angostura deposit. Importantly, the depth of the oxide mineralization is continuing to show good thickness in and to the east of the Veta de Barro area.

Hole CR06-03, which was collared on the northern limit of the Cristo Rey geochemical anomaly intersected 2.81 grams gold per tonne over 3.15 metres and 4.44 grams gold per tonne over 1.3 metres before intersecting a higher-grade structure at depth within the northern limits of the Veta de Barro area. This structure ran 74.16 grams gold per tonne over 3 metres including a higher-grade section running 145.4 grams gold per tonne over 1.3 metres.

Moving some 350 metres south and 300 metres west of this higher-grade intercept, hole VB06-04 was collared in the Veta de Barro area and returned 1.48 grams gold per tonne over 29.85 metres, within which there was a higher-grade section of 16.05 grams gold per tonne over 1.05 metres. The hole also encountered several new structures that yielded 1.13 grams gold per tonne over 30 metres, 0.89 gram gold per tonne over 10.2 metres and 0.82 gram gold per tonne over 21 metres.

Drilling on the eastern extension of the Veta de Barro area, hole VBE06-07 returned 0.44 gram gold per tonne over 9.5 metres, 1.88 grams gold per tonne over 20 metres, plus 2.38 grams gold per tonne over 10.8 metres. The most eastern hole, drilled 200 metres away, intersected only weak and narrow mineralization.

On the El Pozo structure and to the immediate north of Los Laches, hole QPO06-05 returned 2.08 grams gold per tonne over 30.5 metres, opening up this region for further expansion.

In the La Alta area, hole AL06-07 intercepted a higher-grade narrow structure that returned 11.13 grams gold per tonne over 2 metres before encountering 0.54 gram gold over 14.2 metres in Vein 67 and a footwall vein that returned 3.36 grams gold per tonne over 9.5 metres.

Some 100 metres to the east and 100 metres south, hole AL06-09 returned 2.3 grams gold per tonne over 4.6 metres, 0.71 gram gold per tonne over 31 metres and 1.16 grams gold per tonne over 10 metres before hitting Vein 5, which returned 2.63 grams gold per tonne over 12 metres, including a higher-grade section running 4.6 grams gold per tonne over 6 metres. Hole AL06-08, which was drilled 300 metres east of hole AL06-07 intersected only weak and narrow structures.

The latest results also include four underground horizontal holes collared in the La Alta area with hole UAL06-06 returning 1.69 grams gold per tonne over 11.3 metres and 0.62 gram gold per tonne over 14 metres; hole UAL06-07 intersected 5.99 grams gold per tonne over 3.9 metres; hole UAL06-09 drilled 75 meters to the east of hole UAL06-06, returned 2.6 grams gold over 8 metres in Vein 21, with other intercepts such as 0.74, 0.68, and 0.6 gram gold per tonne over 13.45, 13 and 18 metres, respectively; and hole UAL06-08, which was drilled 25 metres further east of UAL06-09, intersected 0.58 gram gold per tonne over 13.6 metres, 1.07 grams gold per tonne over 4.4 metres and 1.74 grams gold over 14.2 metres.

To the south in the Diamante area, hole UDM06-04 cut 19.2 grams gold per tonne over 1.25 metres followed by 1.23 grams gold per tonne over 8.75 metres and in the footwall another shoot containing 26.96 grams gold per tonne over 5 metres, followed by an intercept of 0.85 gram gold per tonne over 13.3 metres.

Further south in the Silencio area, hole USI06-06 intercepted 4.42 grams gold per tonne over 10.3 metres in Vein 12, plus 24.4 grams gold per tonne over 3.3 metres and 1.61 grams gold per tonne over 12.9 metres. A second hole drilled in the Silencio area, hole USI06-07 intersected 1.38, 1.10 and 0.91 gram gold per tonne over 10.2, 11.4, and 28.5 metres, respectively.

The latest drill results include:



---------------------------------------------------------------------
Hole Intercept From To Interval Gold Silver
(m) (m) (m(iii)) gm/t gm/t
---------------------------------------------------------------------
AL06-07 NEW 75.0 77.0 2.0 11.13 17.2
----------------------------------------------------------
V67 103.0 117.2 14.2 0.54 2.27
----------------------------------------------------------
NEW 143.3 166.5 23.2 0.57 1.5
----------------------------------------------------------
NEW 317.5 327.0 9.5 3.36 4.29
---------------------------------------------------------------------
AL06-09 V2 53.0 84.0 31.0 0.71 4.2
----------------------------------------------------------
V4 241.0 251.0 10.0 1.16 1.0
----------------------------------------------------------
V5 262.0 274.0 12.0 2.63 12.6
----------------------------------------------------------
V6 281.0 320.0 39.0 0.87 3.0
---------------------------------------------------------------------
CR06-03 NEW 33.85 37.0 3.15 2.81 43.8
----------------------------------------------------------
NEW 139.5 140.8 1.3 4.44 18.2
----------------------------------------------------------
NEW 439.3 442.3 3.0 74.16 167.2
---------------------------------------------------------------------
QPO06-05 NEW 390.5 421.0 30.5 2.08 12.2
----------------------------------------------------------
NEW 431.0 443.0 12.0 0.7 6.9
---------------------------------------------------------------------
UAL06-06 V21 2.0 13.3 11.3 1.69 4.9
----------------------------------------------------------
V29 196.0 210.0 14.0 0.62 1.4
---------------------------------------------------------------------
UAL06-07 V22 31.6 35.5 3.9 5.99 63.5
---------------------------------------------------------------------
UAL06-08 V26 131.4 145.0 13.6 0.58 3.7
----------------------------------------------------------
V29 167.0 181.2 14.2 1.74 5.0
---------------------------------------------------------------------
UAL06-09 V21 8.0 16.0 8.0 2.6 16.3
----------------------------------------------------------
V25 116.55 130.0 13.45 0.74 1.4
---------------------------------------------------------------------
USI06-06 V12 56.0 66.3 10.3 4.42 56.2
----------------------------------------------------------
V331/V16 110.0 113.3 3.3 24.44 16.3
----------------------------------------------------------
V16 118.1 131.0 12.9 1.61 5.7
---------------------------------------------------------------------
USI06-07 V13 17.0 27.0 10.0 1.38 10.2
----------------------------------------------------------
V12 37.6 49.0 11.4 1.1 14.3
----------------------------------------------------------
V29 120.5 149.0 28.5 0.91 3.9
---------------------------------------------------------------------
USI06-09 V331 109.0 132.5 23.5 0.83 2.2
----------------------------------------------------------
V29 145.5 157.0 11.5 1.2 2.5
---------------------------------------------------------------------
USI06-10 V12-V53 13.0 43.0 30.0 0.59 1.0
----------------------------------------------------------
V364 87.0 110.0 23.0 0.61 2.5
----------------------------------------------------------
V29 143.0 163.5 20.5 0.79 1.9
---------------------------------------------------------------------
UDM06-04 V21HW 44.25 53.0 8.75 1.23 5.0
----------------------------------------------------------
V21FW 53.0 58.0 5.0 26.96 48.3
----------------------------------------------------------
V23-V24-
V25-V26 88.0 149.0 61.0 0.73 2.4
---------------------------------------------------------------------
VB06-03 V561 324.65 326.0 1.35 3.98 30.0
----------------------------------------------------------
V363 465.2 470.0 4.8 2.4 11.6
---------------------------------------------------------------------
VB06-04 NEW 70.0 100.0 30.0 1.13 7.3
----------------------------------------------------------
NEW 207.0 228.0 21.0 0.82 2.5
----------------------------------------------------------
V561 253.15 283.0 29.85 1.48 3.9
---------------------------------------------------------------------
VBE06-07 NEW 225.0 245.0 20.0 1.88 40.3
----------------------------------------------------------
NEW 265.2 276.0 10.8 2.38 8.7
---------------------------------------------------------------------
Note: m(iii) - Down-hole width, not corrected but based on drill
holes and structural dip of the mineralization, the interval is
considered to be close to true width.


Based on 112,797 metres of drilling, the August 2005 resource calculation for the Angostura deposit came in at 5.83 million ounces of gold and 24.6 million ounces of silver within an indicated resource of 148.14 million tonnes grading 1.22 grams gold per tonne and 5.17 grams silver per tonne, plus another 4.47 million ounces of gold and 21.5 million ounces of silver within an inferred resource of 123.3 million tonnes grading 1.13 grams gold per tonne and 5.42 grams silver per tonne using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for sulphide (Press Release August 16, 2005). Resource estimation was undertaken in compliance with CIM Mineral Resource and Mineral Reserve definitions that are referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. A location map of the Angostura drilling, along with a map of the underground tunnel work, can be accessed from our home page link at Greystar's website: www.greystarresources.com.

REVIEW BY QUALIFIED PERSON, QUALITY CONTROL AND REPORTS

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 in quarters (HQ) or halves (NQ), with one quarter or one half of the core 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 reassays 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.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

All dollar amounts are in Canadian dollars, unless otherwise stated.


No Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

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