Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

February 08, 2011 09:00 ET

Grayd Reports Expansion of Tarachi Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) - Grayd Resource Corporation (TSX VENTURE:GYD) is pleased to provide a drilling update for the Tarachi gold project, part of its 100% owned La India project in Sonora, Mexico.

Tarachi is a very large mineralized system that encompasses zones with significant gold content. Mineralization starts at surface. Holes recently completed expanded the known boundaries of the system and continued to outline areas of higher gold grades. Drilling in the Llano zone has outlined a 500 by 400 metre area with higher grades that is open along strike and to depth. New intersections include RC-10-584 with 74.7 m at 1.03 g/t Au with a high grade core of 22.9 m at 2.58 g/t Au, and RC-11-588 with 44.2 m at 0.93 g/t Au.

New results also include intercepts from RC-11-590, a similar mineralized zone 700 metres northwest of the Llano zone at Llano Grande. This entire 251 m hole intersected anomalous gold averaging 0.30 g/t Au, including a 16.8 m interval of 1.01 g/t Au. The hole bottomed in a 24 m interval averaging 0.64 g/t gold.

Marc Prefontaine, President and CEO of Grayd, stated: "Our exploration efforts continue to demonstrate that a very large mineral system underlies Tarachi. We have found similar looking quartz veins in sporadic outcrop over a 2 by 3 kilometre area. Every hole we have drilled to date on this target has intersected at least some +0.3 g/t Au material, and many holes are mineralized from top to bottom. Our team is working hard on a model to predict the location of higher grade zones within the larger system. Most of Tarachi has not yet been drill tested. It is a very exciting target and a focus of the Company's exploration efforts going forward."

Ten new reverse circulation (RC) drill holes drilled in late 2010 and January 2011 are reported herein. Nine of the holes were targeted on a concentration of sheeted and stockwork quartz veins exposed in the Llano zone. As in previous drilling, higher grade intersections occur within extensive zones of alteration with anomalous gold that usually encompass the entire hole. A summary of all drill results from Tarachi to date is given below.

Besides focusing on the exploration of Tarachi, Grayd will begin feasibility level studies on the existing resource area that was subject to a Preliminary Economic Assessment, reported on October 21, 2010. This assessment showed 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.

Tarachi Geology

Gold mineralization at Tarachi developed over a greater than 4 km2 area with multi-stage sheeted and stockwork quartz veins in dacitic volcanic rocks and subvolcanic dacitic intrusions. Exposures of veined rock are poor and old workings very sparse; therefore, the area has been separated into three zones with veined exposures known as Llano, Llano Grande and Las Huejas. Exposures of mineralized rock and drill core display a vein paragenesis characteristic of episodic or pulsed hydrothermal events. These events recorded an early stage black quartz breccia and veins with irregular vein walls and low gold grades (less than 0.1-0.5g/t Au) crosscut by white quartz veins with planar vein walls and molybdenite cores (less than 0.1-0.5g/t Au, greater than 100 ppm Mo). Later black banded and botryiodal sheeted quartz veins, associated with higher gold grades (greater than 0.5-5.0 g/t Au, up to 22.9 g/t Au), crosscut the earlier quartz. Latest banded and botryiodal tan quartz veins with planar vein walls carry trace gold (less than 0.1 g/t Au) and brassy pyrite. All quartz veins are less than 2 cm-in-width and lack distinct alteration halos. Alteration with illite – kaolinite ± dickite defines a central zone closely associated with the highest gold grades that is progressively enveloped by illite – smectite – pyrite, and a distal zone of smectite – hematite – carbonate – pyrite. Concentrations of quartz veins are associated with west, north-northwest, and northeast-trending fracture zones. These fracture zones also display slickenside striae that record strike-slip and dip-slip displacement interpreted as the result of the later Miocene extensional tectonics.

Table 1 Tarachi drill summary (new drilling)

Hole E N Depth (m) Az Dip From(m) To(m) Width(m) Au (g/t)
RC-11-593 699888 3184962 160.0 20 -50 117.3 160.0 42.7 0.33
RC-11-592 700053 3184925 251.5 10 -50 0.0 102.1 102.1 0.45
including 71.6 102.1 30.5 0.87
RC-11-591 700399 3185128 227.1 220 -50 18.3 67.1 48.8 0.50
RC-11-590 699801 3185551 251.5 10 -50 0 251.5 251.5 0.30
including 167.6 184.4 16.8 1.01
including 227.1 251.5 24.4 0.64
RC-11-589 700198 3184803 251.5 10 -50 51.8 103.6 51.8 0.41
RC-10-588 700278 3185073 166.1 60 -50 4.6 48.8 44.2 0.93
including 38.1 48.8 10.7 2.03
RC-10-587 699995 3185078 251.5 190 -60 19.8 44.2 24.4 0.35
RC-10-586 700002 3184844 251.5 10 -60 99.1 192.0 93.0 0.52
RC-10-585 700129 3184906 205.7 10 -60 6.1 123.4 117.3 0.50
RC-10-584 700221 3184982 275.4 225 -60 65.5 190.5 125.0 0.68
including 115.8 190.5 74.7 1.03
including 153.9 176.8 22.9 2.58

Table 2 Tarachi drill summary (previously released holes)

Hole Depth (m) From(m) To(m) Width(m) Au (g/t)
RC-10-583 254.5 64.0 88.4 24.4 0.35
RC-10-582 269.8 13.7 236.2 222.5 0.50
  including 160.0 230.1 70.1 0.95
RC-10-581 160.0 7.6 112.8 105.2 0.18
RC-10-580 306.3 77.7 208.8 131.1 0.19
RC-10-579 233.2 13.7 99.1 85.3 0.31
RC-10-578 243.8 42.7 228.6 185.9 0.29
RC-10-577 245.4 132.6 245.4 112.8 0.39
RC-10-576 213.4 99.1 134.1 35.1 0.24
           
DDH-10-169 226 0.0 9.0 9.0 0.55
DDH-10-168 194 9.0 36.0 27.0 0.67
DDH-10-167 250.0 6 250 244.0 0.85
    108 198 90.0 1.21
DDH-10-166 324.8 No significant intersection
DDH-10-165 327.9 No significant intersection
DDH-10-164 207.4 161.0 166.0 5.0 0.70
DDH-10-163 253.2 No significant intersection
DDH-10-162 349.2 9.0 46.0 37.0 0.38
DDH-10-161 373.6 136.0 247.0 111.0 0.43
  including 144.0 158.0 14.0 1.07
DDH-10-160 205.9 24.0 142.0 118.0 0.38
  including 41.0 75.0 34.0 0.62
DDH-10-159 199.8 9.0 141.0 132.0 0.50
  including 68.0 105.0 37.0 0.86
DDH-10-158 410.7 11.0 253.0 212.0 0.31
  including 152.0 184.0 32.0 0.69
DDH-10-157 179.95 0.0 180.0 180.0 0.28
  including 101.0 123.0 22.0 0.74
DDH-10-153 157.1 15.3 157.1 141.9 0.23
  including 23.8 55.8 32.0 0.43
DDH-10-152 189.1 146.0 154.0 8.0 0.67
DDH-10-151 138.8 3.0 16.0 16.0 0.41
DDH-10-150 164.7 55.0 117.0 62.0 0.40
DDH-10-149 221.2 0.0 191.0 191.0 0.85
  including 98.0 186.0 88.0 1.54
  including 146.0 180.0 34.0 2.23
DDH-10-148 212.0 8.0 212.0 204.0 0.47
  including 22.0 96.0 74.0 0.95
DDH-10-147 151.0 7.0 110.0 103.0 0.18
DDH-10-129 93 0.0 93.0 93.0 0.27
  including 0.0 9.0 9.0 1.22
DDH-10-128 100.65 0.0 100.6 100.6 0.27
  including 0.0 36.0 36.0 0.51
DDH-10-127 164.7 0.0 109.0 109.0 0.28
  including 0.0 19.0 19.0 0.58
  including 87.0 109.0 22.0 0.57
DDH-10-126 303.3 0.0 94.0 94.0 0.43
DDH-10-125 300.4 0.0 159.0 159.0 0.22
DDH-10-124 301.95 6.0 302.0 296.0 0.21
DDH-10-123 276.4 2.2 165.5 163.3 0.33
  including 2.2 58.0 55.8 0.71

The La India property is a feasibility stage heap leach gold project 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.

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.

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.

Note: To view the map associated with this release, please click the following link: http://media3.marketwire.com/docs/gyd0208.pdf

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
    www.grayd.com