Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

October 14, 2009 17:33 ET

Grizzly Provides Update On The Greenwood Gold Project With Rock Samples Yielding Up To 99.6 g/t (2.9 oz/t) Au and 27.1 g/t (0.79 oz/t) Pt

EDMONTON, ALBERTA--(Marketwire - Oct. 14, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") is pleased to provide the following property and exploration update for its Greenwood Gold Project, British Columbia.

Mr. Brian Testo, President and CEO of Grizzly, commented: "We are very encouraged by results from the recent fieldwork program at the Greenwood Gold Project, where we are searching for a high-grade large-tonnage gold deposit. We are especially pleased with the copper-silver-platinum results obtained at the Sappho showings, which have given us a new deposit type to evaluate, and we are looking forward to the upcoming drill program to test some new ideas at some historic gold showings.

"Grizzly has achieved a number of firsts with Greenwood. It is the largest land package that has ever been assembled in this highly prospective area and this is the first time that modern systematic exploration techniques have been applied to evaluate the mineral potential. Grizzly has: completed a large scale data compilation; initiated field work; and conducted two time-domain mag-EM airborne surveys with new technology. We have many targets to follow up and will be completing the first of many drill programs to test the potential of historic gold showings."

2009 Fieldwork

The 2009 field program being conducted by APEX Geoscience Ltd. (APEX) consists of prospecting, rock and soil sampling, stream sediment sampling, geological mapping and ground geophysical surveys. To date, a total of 589 rock samples have been collected with assays for all samples received to date. New and recent highlights include the following:

  • The Copper Mountain area has yielded a total of 6 rock samples with 9.41 up to 99.6 grams per tonne (g/t) gold (0.27 up to 2.9 ounces per ton (oz/t) Au) and up to 19.7 g/t (0.57 oz/t) silver (Ag) with associated anomalous copper (Cu), zinc (Zn), arsenic (As) and bismuth (Bi).
  • Gold and copper mineralization in the Copper Mountain area is hosted in either Late Paleozoic Knob Hill Group volcanics and sediments or within Triassic Brooklyn Formation sediments and is associated with extensive wallrock alteration, sulphides, veining and, in some cases, skarn alteration.
  • Sampling in and around the historic Sappho showings hosted in the Jurassic age Sappho alkaline intrusive complex has yielded up to 27.1 g/t (0.79 oz/t) platinum (Pt), 1.49 g/t (0.04 oz/t) palladium (Pd), 75.3 g/t (2.2 oz/t) Ag, 0.64 g/t Au and 8.28% Cu.
  • The Jurassic age Cu-Ag-Pt-Pd mineralization at the Sappho area is associated with semi-massive to massive veins, blebs, pods and disseminations of chalcopyrite-pyrite-magnetite hosted by pyroxenite, monzonite and syenite intrusions. The intrusions are spatially associated with a distinct 500 m by 800 m ovoid magnetic anomaly identified in the 2008 airborne geophysical survey.
  • Ground geophysical surveys have been performed at the Lawless and Ket 28 areas in preparation for drilling. Follow-up exploration including prospecting, geological mapping, rock and soil sampling across various portions of the property are in progress. Further ground geophysical surveys will be commenced in the upcoming weeks at the Copper Mountain, Motherlode and Sappho areas in order to aid in the identification of future drill targets.

Upcoming 2009 Drilling Program

Historic gold showings at the Lawless and Ket 28 areas will be the first targets drill tested during the fall 2009 program. Drilling is expected to commence late October as soon as land use permits are received. As current target identification progresses, targets in the Copper Mountain and other areas may also be drill tested during 2009 depending upon time and budget constraints.

Further Land Acquisition

Grizzly is pleased to announce that it has signed a purchase agreement ("the Agreement") with three individuals at 'arms length' to Grizzly, to acquire a 100% interest in the Prince of Wales mineral claim in the Copper Mountain area, contiguous with Grizzly's other Greenwood Gold Project claims. Under the terms of the Agreement, and pursuant to TSX Venture Exchange approval on September 28, 2009, Grizzly has issued 30,000 common shares of Grizzly to the Vendors. Grizzly currently holds an interest in more than 170,000 acres in the Greenwood to Rock Creek area of south central British Columbia.

All 2009 field and office exploration programs are being conducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly is an aggressive Canadian exploration company focused on exploring for world class gold and base metal deposits in British Columbia and diamonds and industrial minerals in Alberta. In British Columbia, Grizzly currently has five precious-base metal properties totaling over 175,000 acres. It currently holds more than 1 million acres in diamond properties which host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta. Grizzly has also acquired metallic and industrial mineral permits for Potash totaling more than 1.4 Million acres along the Saskatchewan-Alberta border.

Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 23,048,970 common shares issued and outstanding.

On behalf of the Board

Grizzly Diamonds Ltd.

Brian Testo, President

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from expectations are in Grizzly's documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Grizzly disclaims any intention or obligation to revise or update such statements.

This news release also contains technical information that has been publicly sourced. Grizzly has not independently verified such information and accepts no responsibility for its accuracy or completeness.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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