Grayd Resource Corporation

Grayd Resource Corporation

August 16, 2005 08:30 ET

Grayd Resource Corporation: Fourteen Exploration Targets Identified at La India Gold Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2005) - Grayd Resource Corporation (TSX VENTURE:GYD) is pleased to provide an update on the La India gold project located in Sonora State, Mexico. Fourteen initial exploration targets spread over an 8 km length were identified by Newmont Mining Corporation (NYSE: NEM) from the information collected during their due diligence on the property. Targets with the potential to host high-sulphidation epithermal gold deposits were developed through evaluation of geological, geochemical and geophysical data collected in May and June of 2005.

All targets have resistivity anomalies identified from the 1000 line-km airborne geophysical survey flown over the property. High resistivities indicate that areas are underlain by silicified rocks. The priority targets have resistivity anomalies that continue to depth, indicating possible hydrothermal centers. Target definition was further supported by geological mapping, alteration identification and anomalous gold, silver and/or pathfinder elements in surface rock samples. Some targets in the northwestern part of the property were further refined through ground geophysics (IP).

Preparations are underway to start exploring the targets identified. Each target will be mapped and sampled in detail, and ground IP will be conducted on two perpendicular lines to better understand orientations of the potential hydrothermal systems at depth. This work will be followed by a drill program tentatively planned to start in November 2005. The exploration program will have a minimum budget of US $1 million. Grayd will be the operator.

Under the terms of the La India agreement, Newmont will be required to spend US $7 million on exploration and development over a four-year period to earn a 51% interest in the property. The agreement includes a firm commitment to spend US $1 million in year 1 of the agreement. 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.

About Grayd Resource Corporation

Grayd has interests in three exploration properties:

1. the La India high sulphidation epithermal gold project located in Sonora State, Mexico. La India is an early stage prospective multimillion-ounce heap-leach open pit target;

2. the Seel porphyry copper-molybdenum-gold project located in British Columbia, Canada. Seel is an early stage prospective large open pit mining target; and

3. the Delta volcanogenic massive sulphide zinc-copper-lead-gold project located in Alaska, USA. Delta is a mid-stage high grade target amenable to underground mining target.

The TSX Venture Exchange 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
    Freeform Communications Inc.
    (604) 377-5781