Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

March 22, 2011 09:00 ET

Grayd Accelerates Drill Program at Tarachi Gold Porphyry

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2011) - Grayd Resource Corporation (TSX VENTURE:GYD) ("Grayd") reports step out drilling continues to expand the known area of gold mineralization at Tarachi, part of its 100% owned La India Property in Sonora, Mexico. Gold porphyry mineralization, which starts at surface and is open at depth, has now been intersected over an area of approximately 800 x 800 metres. Grayd plans to accelerate its exploration at Tarachi and move to a three drill program in the coming weeks.

Recent results include RC-11-595 which intersected 0.56 g/t Au over 106.7 metres, including 26 metres of 1.01 g/t Au, and bottoming in an 18 metre interval averaging 0.53 g/t Au. This new drill hole is located 350 metres to the north of the area with the highest concentration of drilling and best results to date, with results significantly expanding the extent of confirmed gold mineralization. RC-11-595 intersected similar mineralization to a previously released step out, 470 metres to the northwest, where RC-11-590 intersected 0.30 g/t Au over its entire 252 metre length, including a 17 metre interval of 1.0 g/t Au, and bottomed in a 24 metre interval averaging 0.64 g/t Au. Please see the attached Tarachi map or visit our website at www.grayd.com.

New step out drilling near RC-11-590 has also expanded the extent of mineralization in the western area by a further 50 metres. RC-11-596 intersected 158.5 metres of 0.29 g/t Au including 38.1 metres of 0.52 g/t Au and demonstrates the area to the west remains open at depth and in all directions.

RC-11-594 intersected 85.3m of 0.30 g/t Au and was an offset hole to previous drilling in the area where most drilling has occurred to date.

Marc Prefontaine, President and CEO of Grayd, stated: "Exploration at Tarachi continues to deliver gold grades over very large intervals. Recent results have expanded the known area of mineralization, and most of the Tarachi target area has yet to be drill tested. A gold porphyry model gives us great incentive to expand our drilling activities to test the extent of this large gold system, and start drilling to define resources in the higher grade areas. We are very excited by our results to date, and look forward to advancing the project with two additional drills, providing exploration results on a regular basis."

The new drill holes have intersected the same style of gold mineralization reported previously from the Tarachi area (February 2011). This style of mineralization is similar to porphyry-style gold systems globally. Gold porphyries are characteristically of moderate to low grade, but contain high tonnages that support large mining operations. World-class gold porphyries of this type occur in the Maricunga belt of Chile, where over 60 million ounces of gold have been identified in 14 separate deposits.

Table of New Drill Results:

      Depth     From To Width Au
Hole N E (m) Az Dip (m) (m) (m) (g/t)
RC-11-594 3185080 700201 203 45 -50 12.2 97.5 85.3 0.39
RC-11-595 3185271 700179 285 10 -50 73.2 103.6 30.5 0.53
  178.3 285 106.7 0.56
including 202.7 236.2 26 1.01
RC-11-596 3185630 699808 221 10 -50 0 158.5 158.5 0.3
including 0 38.1 38.1 0.52

The La India property is located in the prolific Mulatos gold belt of Mexico's Sonora state. Tarachi is located 10 kilometers north of the resource area that was analyzed in a recently reported Preliminary Economic Assessment (PEA) and represents a separate gold-rich mineral system. Results of the PEA, reported on October 21, 2010, show a 51% internal rate of return, a US$187 million net present value (pre-tax, 5% discount rate), a nine-year mine life and nearly 850,000 ounces of gold produced. Grayd has initiated feasibility level work on this resource.

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. 

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/GYD0322.pdf

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 expression 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.

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
    or
    Grayd Resource Corporation
    Daniel G. McIntyre
    Manager Corporate Communications
    604-681-7446
    604-608-5372 (FAX)
    www.grayd.com