Grayd Resource Corporation
TSX VENTURE : GYD
OTCQX : GYDRF

Grayd Resource Corporation

July 20, 2011 08:45 ET

Grayd Doubles Land Position at La India Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2011) - Grayd Resource Corporation (TSX VENTURE:GYD)(OTCQX:GYDRF) is pleased to announce that it has doubled its land position at the La India Gold Project in Sonora, Mexico. The company recently acquired an additional 15 claims covering approximately 27,000 hectares through staking and three new option agreements. The addition of these new claims makes Grayd the largest mineral title holder in the Mulatos Gold Belt with a total of approximately 54,000 hectares. The new claims include the area located adjacent to and along trend of the recently discovered Tarachi Gold Porphyry. The claims also cover several other prospective targets in the belt including a potential new high sulphidation system and a historic gold-silver prospect.

Marc Prefontaine, President and CEO of Grayd, comments: "The most important aspect of this new land position is that we now control claims covering the area where we project the Tarachi gold porphyry system extends into. Our success on the claims we already owned demonstrates the significant size potential of this system and we look forward to drilling in the newly acquired area to test our model. We are also going to start mapping and sampling other prospects to identify drill targets. This claim acquisition is a significant milestone for Grayd as we have now become the largest mineral title holder in the Mulatos Gold Belt. We have made steady progress in the district since starting exploration in 2004, from discovering the La India prospect to completing a Preliminary Economic Assessment on this area of the project in 2010. In 2010 we discovered Tarachi and we are now expanding our efforts there as well as acquiring new prospects to bring into our exploration pipeline."

In addition to staking, the Company has signed two formal option agreements and one binding Promissory Agreement as described below:

Tayopa – La Chivitas Agreement (6 claims covering 11,807 hectares).

Under the terms of the agreement, the Company will pay US $750,000 over 5 years with an initial payment of US $50,000. The property is subject to a 2% NSR whereby Grayd can buy back 1% for US $1 million.

S. Colorado (one claim covering 400 hectares).

Under the terms of the agreement, the Company will pay US $750,000 over 6 years with an initial payment of US $20,000. The property is subject to a 2% NSR whereby Grayd can buy back 1% for US $1 million.

San Javier – Chivitas Agreement (7 claims covering 1,017 hectares).

Under the terms of the agreement, the Company will pay US $2 million over 5 years with the last payment in year 5 of US $1.45 million. With the exception of an initial $50,000 payment on signing the Promissory Agreement and a subsequent payment of $15,000, the payments will be half in cash and half in Grayd shares. Number of shares issued in each payment will be calculated based on the 20 day average close of the share price. The property is subject to a 2% NSR whereby Grayd can buy back each 1% for US $1 million.

The La India property is located in the prolific Mulatos gold belt of Mexico's Sonora state. The La India property covers a feasibility stage heap leach gold project. Results of a PEA completed 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 using a gold price of $950/oz. (See Grayd news release dated October 21, 2010). Grayd has initiated feasibility level work on this resource. The property also covers the Tarachi zone, where porphyry gold style mineralization has been identified over a 10km2 area.

Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India and has approved the contents of this news release.

To view accompanying map, visit the following link: http://media3.marketwire.com/docs/LaIndiaProject.jpg

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. Except as required by applicable securities laws, 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
    604-684-9877 (FAX)
    www.grayd.com