Grayd Resource Corporation

Grayd Resource Corporation

March 30, 2010 12:20 ET

Grayd and Hunter Dickinson Form Joint Venture on Delta Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2010) - Grayd Resource Corporation (TSX VENTURE:GYD) has entered into an agreement with the Hunter Dickinson group ("HD") to form a joint venture on its 100%-owned Delta base and precious metals volcanogenic massive sulphide project located in the eastern Alaska Range, approximately 58 km southwest of Tok, Alaska (the "Delta Project"). A key part of the venture is an additional 238 claims that have recently been staked, expanding the property to 61 square miles, (158 square kilometers).

Exploration work dating back to 1976 at the Delta Project has resulted in the discovery of some 40 mineral showings. Three stratigraphic horizons favourable for the occurrence of massive sulphide mineralization have been recognized and sulphide mineralization has been traced for at least 3.2 km of strike length in a semi-continuous horizon.

In addition, the Delta property hosts mineral zones with estimated Inferred Mineral Resources totaling 15.4 million tonnes grading 0.6% Cu, 1.7% Pb, 3.8% Zn, 62 g/t Ag, and 1.7 g/t Au. * (GYD press release July 13, 2006).

Historic work on the property includes geological mapping, geophysical and geochemical surveying and approximately 27,000 metres of core drilling. Hunter Dickinson has initiated a compilation and reinterpretation of the extensive historic database and archived core specimens as a first step in the development of new deposit models and targets.

Grayd, its wholly owned subsidiary Grayd Resources (USA), Inc. ("Grayd USA"), and HD have agreed to form and operate a limited liability company under the Delaware Limited Liability Company Act which is registered to carry on business in the State of Alaska (the "Company"), to hold the joint venture assets and to explore, evaluate and, if justified, mine the property.

Under the terms of agreement, Grayd has acquired a 40% interest in the Company by contributing all claims held by Grayd USA, including claims held before the agreement with HD and new claims that were staked by Grayd USA during December 2009. HD will hold a 60% interest in the Company by reimbursing Grayd USA for reasonable costs related to the December 2009 claim-staking, and by funding exploration and development expenditures on the Delta Project totaling in aggregate at least one million dollars (US $1,000,000) on or before January 1, 2012 and an additional amount of at least two million dollars (US $2,000,000) on or before January 1, 2013 (the "Initial Contribution"). Upon completion of its Initial Contribution, HD shall have an additional earn-in option to increase its ownership interest in the Company to 80% by funding additional expenditures of four million dollars (US $4,000,000) on or before January 1, 2014 (the "First Option"). Within 90 days of exercising the First Option, HD shall have the option to increase its ownership interest in the Company to 100% by providing that, at HD's election, either two million (2,000,000) shares or shares with a market value of four million dollars (US$ 4,000,000) in any publicly listed company through which HD's interest in the Company is held, are issued to Grayd USA.

If HD does not complete its Initial Contribution, it shall be deemed to have resigned and withdrawn from the joint venture, returning its 60% ownership interest in the Company to Grayd. If HD exercises, but does not complete, the additional earn-in options, its ownership interest will remain at the last milestone earned.

HD, as project operator, will have responsibility for operations and reporting as directed by a joint management committee chaired by HD and comprised of two Grayd representatives and four HD representatives. If either party declines to fund its share of a program and budget, as approved by the management committee, the other party can elect to cover those costs and standard straight-line dilution will apply.

If the ownership interest of either party is reduced below ten percent (10%), that interest shall then convert to a 1% net smelter royalty ("NSR") with the other party having the option to acquire the NSR for one million dollars (US $1,000,000). The withdrawing party shall be deemed to have resigned and withdrawn from the Company with their interest accruing free and clear to the other party.

If either party elects to sell its interest in the Company other than to an affiliate, that party shall first offer to sell its interest to the other party, and the selling party may not sell its interest to a third party on terms more favourable than the terms offered to the other party.

Hans Smit, P.Geo., VP Exploration for Grayd, is a Qualified Person as defined by NI 43-101. Mr. Smit has reviewed and approved the contents of this news release.

HUNTER DICKINSON is a private company based in Vancouver, B.C., and associated with a suite of publicly-traded companies engaged in mineral exploration, development and mine operations around the world. HD's multi-disciplinary team of approximately 120 financial and technical specialists provides professional services to successful mine operators and developers on four continents, with interests in gold, copper, platinum group metals, molybdenum, zinc, silver and diamonds. HD-managed companies have successful tracks record for identifying, acquiring, developing, permitting and mining globally significant mineral deposits.

GRAYD RESOURCE CORPORATION is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in Mexico which is highly prospective for gold mineralization. The Company's Officers and Directors are experienced in all aspects of mineral exploration, development and production and have been involved with several successful mining projects during the past 20 years.

* Resource estimate presented in a report entitled 'Technical Report and Exploration Recommendations on the Delta VMS Property' dated May 17, 2006 by Samuel S. Dashevsky, C.P.Geo and Carl F.Schaefer, C.P.Geo. Resource estimate encompasses the DD, DW, MID, LP, LPH and PP2 deposits. Cut-off grade applied was US$80/ton over 8 feet (2.4m), using metal prices of Cu $2.00/lb, Pb $0.50/lb, Zn $1.00/lb, Ag $10.00/oz, Au $550/oz.

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
    604-684-9877 (FAX)