Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

April 27, 2011 11:42 ET

Grayd Reports Promising Metallurgical Testwork From Tarachi Gold Porphyry

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) -Grayd Resource Corporation (TSX VENTURE:GYD) ("Grayd") reports an average gold recovery of 79% from nine cyanide bottle roll leach tests on material from the newly discovered Tarachi gold porphyry.

The cyanide bottle roll leach tests were completed by Kappes Cassiday and Associates (KCA) of Reno, Nevada. Each sample tested was a composite made from the assay rejects of 4 samples within a specified range from individual drill holes. Samples were chosen to provide a distribution in area, depth and gold grade. All tests were performed on 1 kilogram of material pulverized to 0.075 mm and were leached for 4 days. Individual test results ranged from a low of 61% gold recovery to a high of 95%. Cyanide consumptions of 0.09 to 0.70 kg/tonne were relatively low.

Marc Prefontaine, President and CEO of Grayd, stated: "These metallurgical results are very positive as they indicate the majority of the gold at Tarachi can be recovered by relatively simple processes. Further work will be undertaken to evaluate recovery versus particle size. By the end of this month, 3 drills will be working on the property to continue testing this very large system."

Tarachi – Cyanide Bottle Roll Leach Test Results
SampleDrill holeFrom
(M)
To
(M)
Calculated
Head,
gms
Au/MT
Extracted,
gms
Au/MT
Avg
Tails,
gms
Au/MT
Au
Extracted
%
NaCN,
kg/MT
Addition
Ca(OH)2,
kg/MT
TA-1DDH-10-14866.087.02.0501.7160.33484%0.494.00
TA-2DDH-10-149125.0142.01.5061.1980.30980%0.193.25
TA-3RC-10-582158.5169.20.5670.4570.11181%0.222.00
TA-4RC-10-582189.0207.32.2291.9070.32286%0.154.00
TA-5DDH-10-1679.014.00.9890.9430.04695%0.476.50
TA-6DDH-10-16782.093.00.6310.3870.24361%0.093.00
TA-7RC-10-58582.3102.10.5800.3550.22561%0.706.50
TA-8RC-10-586141.7157.00.6270.5280.09984%0.111.75
TA-9RC-10-58839.648.81.8111.4270.38479%0.575.00

Mineralization at Tarachi is similar to porphyry-style gold systems globally. Gold porphyries are characteristically of moderate to low grade, but contain high tonnages that support large mining operations. World-class gold porphyries of this type occur in the Maricunga belt of Chile, where over 60 million ounces of gold have been identified in 14 separate deposits.

The La India property is 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 9-year mine life and nearly 850,000 ounces of gold produced with an open pit mine and heap leach extraction facility. Grayd has initiated feasibility level work on this resource.

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. Test work described in this news release was performed by Kappes Cassiday and Associates in Reno, Nevada.

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
    604-681-7446

    Grayd Resource Corporation
    Daniel G. McIntyre
    Manager Corporate Communications
    604-681-7446
    www.grayd.com