Grayd Resource Corporation

Grayd Resource Corporation

January 12, 2006 13:12 ET

Grayd and Newmont Triple Land Position at La India Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2006) - Grayd Resource Corporation (TSX VENTURE:GYD) has signed a letter of intent acquiring the Santa Cruz Pilar and El Pilar exploration concessions, resulting in an addition of 18,794 hectares to the La India high sulphidation epithermal gold property, located in Sonora State, Mexico. With 260 square kilometres, Grayd is now the largest mineral title owner in the emerging Mulatos Gold District.

The Pilar claims were acquired after a property evaluation by Grayd personnel confirmed that most of the property is underlain by similar geology to the La India property. Gold showings associated with high-sulphidation style alteration and mineralization occur on the new concessions.

A map showing the newly acquired ground and its location in relation to recent drill hole RC05-14, which intersected 85.3 m grading 2.6 g/t Au (see news release January 9, 2006), is shown on the Grayd website.

Terms of the Pilar concession agreement, which is subject to regulatory acceptance, include staged cash payments over 5 years totaling US$750,000 and a 2% NSR, of which 1.5% can be bought back for US$3 million.

The Pilar concessions adjoin the existing Grayd La India property. Newmont Mining Corporation has the right to acquire an interest in the property as part of the agreement between Newmont and Grayd. Under the terms of the La India agreement, Newmont must spend US $7 million on exploration and development over a four-year period to earn a 51% interest on the La India property. Newmont can earn an additional 19% interest (to a total of 70%) by completing a bankable feasibility study. Grayd is the operator for the first two years of the earn-in.

Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India. Grayd Resource Corporation is a natural resource company engaged in the acquisition, exploration and development of mineral resource properties.

To view the map attached to this release please click on the following link:

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Grayd Resource Corporation
    Marc A. Prefontaine, M.Sc., P.Geo.
    President and CEO
    (604) 681-7446
    (604) 684-9877 (FAX)
    Freeform Communications Inc.
    (604) 628-5188 ext. 101