Grayd Resource Corporation

Grayd Resource Corporation

March 30, 2005 12:47 ET

Grayd and Newmont Sign Letter Agreement to Option Grayd's La India Gold Project in Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GRAYD RESOURCE CORPORATION

TSX VENTURE SYMBOL: GYD

MARCH 30, 2005 - 12:47 ET

Grayd and Newmont Sign Letter Agreement to Option
Grayd's La India Gold Project in Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Grayd
Resource Corporation (TSX VENTURE:GYD) and Newmont Mining Corporation
(NYSE:NEM), through their respective Mexican subsidiaries, have signed a
letter agreement, subject to a due-diligence period, whereby Newmont can
earn an interest in Grayd's 100% owned La India high sulphidation
epithermal gold project located in the Mulatos belt of Sonora State,
Mexico. Marc Prefontaine, President of Grayd said: "We are very excited
about having Newmont as a partner. Their expertise in high-sulphidation
epithermal deposits such as their Yanacocha Deposit in Peru will be a
great benefit to the project. Exploration activity in the Mulatos belt
is heating up: Alamos Gold will be in production in a few months, and
have recently made a new discovery within 1200 m of Grayd's Property.
Additionally next month, Dasher Exploration and Chesapeake Gold have
announced that drilling will commence on their Juliana gold project
located just adjacent to Grayd."

Under the terms of the agreement, Newmont can earn a 51% interest by
spending US $7 million on exploration and development over a four-year
period with a minimum US $1 million firm commitment in year one (US
$750,000 has to be spent by December 31, 2005). Newmont can earn an
additional 19% interest (to a total of 70%) by completing a bankable
feasibility study. Grayd will act as operator for the first two years of
the earn-in. The agreement is subject to a due-diligence period whereby
Newmont, at its sole expense, will complete an airborne geophysical
survey over the property. This program is scheduled to commence on April
15, 2005. After completing the airborne survey Newmont will have 45 days
or until June 10, 2005, whichever comes first, to elect whether or not
to proceed with the earn-in agreement. If Newmont elects not to proceed
with the earn-in, it will supply all the geophysical information and any
other geological information collected to Grayd.

With a land package totaling approximately 75 square kilometres, Grayd
is the second largest landholder in the Mulatos District after Alamos
Gold, which is currently developing the 3 million ounce Mulatos gold
deposit located 6 km from the La India project boundary. The La India
property covers a 10 km long by 3.5 km wide northwest trending belt of
highly altered volcanic rocks with associated high sulphidation gold
mineralization. Thus far, seven areas with gold mineralization have been
identified.

For further information on the La India property, please visit
www.grayd.com. Grayd Resource Corporation is a natural resource company
engaged in the acquisition, exploration and development of mineral
resource properties. It has a gold project in Mexico, a gold enriched
base metal project in Alaska and a copper-gold project in British
Columbia.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grayd Resource Corporation
    Marc A. Prefontaine, M.Sc., P.Geo.
    President and CEO
    (604) 681-7446
    (604) 684-9877 (FAX)
    www.grayd.com
    or
    Freeform Communications Inc.
    (778) 371-9100 ext. 1220
    The TSX has neither approved nor disapproved of the information
    contained herein.