Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

November 06, 2006 08:30 ET

Grayd Resource Corporation: Gold Intersected in all 3 Zones Drilled at La India Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6, 2006) - Grayd Resource Corporation (TSX VENTURE:GYD) is pleased to provide an update on results from an additional 15 holes in the current 4,000 metre reverse circulation drill program on its 100% owned La India Project, located 15 km northwest of the Mulatos gold mine in Sonora State, Mexico. Drilling targeted on three zones within a 1 km by 500 m area intersected gold in all zones. Results indicate that mineralization occurs on the same altered and mineralized horizon, starting at surface or at shallow depths. Drill highlights include RC06-44, intersecting 83.8 m @ 2.7 g/t Au (including 47.2 m @ 4.1 g/t Au) in the La Cruz zone; RC06-52, intersecting 32.0 m @ 2.5 g/t Au in the Cero de Oro zone; and RC06-40, intersecting 85.3 m @ 2.0 g/t Au (including 36.6 m @ 3.8 g/t Au) in the Viruela zone. A table of drill results and drill plan map is included in this news release.

Marc Prefontaine, President, stated: "Our new understanding of the geological model has resulted in a high success rate in the drilling and significantly increased the potential to discover a large near-surface gold deposit amenable to open pit mining and heap-leach extraction at La India."

La Cruz

Results continue to show a 40 to 60 metre thick silica/vuggy silica horizon in the La Cruz zone which averages 1.6 to 3.1 g/t Au and has now been traced for 150 m in an east-west direction. To the east-northeast, the horizon continues, though widths of the higher grade portion decrease. The higher grade mineralization appears to be cut by a fault on the southeast side, but is open in other directions. Five of the 15 holes being reported were drilled in the La Cruz zone to step out from RC06-38 (65.5 m @ 3.0 g/t Au - see October 1, 2006 news release). RC06-44, located 50 metres west on section, intersected 83.8 m @ 2.7 g/t Au (including 47.2 m @ 4.1 g/t Au). RC06-46, drilled 50 metres to the northeast of hole 38, was terminated due to drilling problems but the second attempt at a hole at the same location, RC06-47, intersected 47.2 m @ 3.1 g/t Au. Two holes, RC06-45 and 48, drilled on either side of hole 38, failed to intersect the higher grade horizon because of faulting, but did return 41.1 m @ 0.8 g/t Au and 45.7 m @ 0.8 g/t respectively.

Cerro de Oro

Drilling in the Cerro de Oro zone, up to 600 metres to the south of La Cruz, intersected a near surface shallow dipping 20 to 40 m thick gold-bearing silica/vuggy silica horizon that is exposed on the west and east sides of a ridge (The horizon is eroded away on the top part of the ridge). On the west side of the ridge, holes RC06 -53 and 54 were drilled at varying directions from the same pad as RC06-25 (56.4 m grading 2.6 g/t Au see April 6, 2006 news release). Hole 53 intersected 48.8 m @ 1.4 g/t Au and hole 54 intersected 41.1 m @ 1.4 g/t Au in highly brecciated and oxidized rock. On the east side of the ridge, RC06-52, located 225 metres southeast of holes 53 and 54, intersected 32.0 m @ 2.5 g/t Au. RC06-50, located 180 northeast of RC06-52, intersected 35.1 m @ 1.7 g/t Au. RC06-51 intersected lower grade material.

Surface mapping and sampling results have traced the Cerro Oro zone for 300 m in a north-south direction. To the north, surface mapping indicates that the Cerro de Oro and La Cruz zones may be on the same horizon, offset by faults and separated by areas where the horizon is eroded. Rock sampling results show that gold mineralization is widespread and further drilling is planned to test for continuity of mineralization. The Cerro de Oro zone is cut by high angle faults on the west side, and is presumed to continue in the area of shallower topography and limited outcrop to the west of the currently known extent.

Viruela

The first four holes drilled by the Company in the Viruela zone, located 400 metres to the northwest of the La Cruz zone, have identified gold mineralization starting at surface associated with a northeast striking breccia within a silica cap. RC06-40 intersected 85.3 m @ 2.0 g/t Au (including 36.6 m @ 3.8 g/t Au) from surface while two offset holes RC06-41 and 42 intersected 62.5 m @ 0.6 g/t Au (including 25.9 @ 0.9 g/t Au) and 35.1 m @ 0.51 respectively. RC-06-43, drilled 45 m northeast of holes 40-42 intersected 61.0 m @ 0.6 g/t Au. Surface mapping suggests that the Viruela zone is on the same horizon as the La Cruz and Cerro de Oro zones. Further drilling will be targeted on finding areas where wide zones of breccia occur or where gold mineralization spreads out within the horizon. Results to date suggest there is good potential for this scenario.

Summary

In summary, drilling has intersected gold mineralization over a 1 km by 500 m area in what may have originally been a continuously silicified and variably mineralized horizon. Gold mineralization appears to be related to northeast striking, steeply dipping structures which provided conduits for fluids into the permeable horizon. Results from the La Cruz zone show thick sections of relatively high gold grades. The Cerro de Oro zone indicates that gold mineralization occurs for potentially 700 hundred metres to the south and southwest of the La Cruz zone. The Viruela zone shows that other mineralized zones related to northeast structures are present within the large altered horizon. Extensive faulting, related to basin and range style extension, has resulted in numerous offsets to the horizon, and has complicated the geological interpretation of the area. Importantly, most intersections start at surface or at shallow depths. The area west of Cerro de Oro provides a large target area for the down-faulted continuation of the horizon and associated gold mineralization.



La India Project - Drill Summary
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UTM Coordinate Intersections
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Au
Hole East North Azim. Dip Length From To Width g/t
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Viruela Zone
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RC06-40 706853 3176570 -90 108.2 0.0 85.3 85.3 2.04
degrees
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including 0.0 36.6 36.6 3.79
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RC06-41 706854 3176570 90 -45 89.9 0.0 62.5 62.5 0.60
degrees degrees
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RC06-42 706854 3176570 270 -55 89.9 0.0 73.2 73.2 0.38
degrees degrees
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including 0.0 35.1 35.1 0.51
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RC06-43 706874 3176607 -90 65.5 0.0 61.0 61.0 0.59
degrees
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0.0 32.0 32.0 0.78
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La Cruz Zone
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RC06-44 707220 3176169 315 -80 163.1 70.1 153.9 83.8 2.69
degrees degrees
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70.1 117.3 47.2 4.05
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RC06-45 707222 3176167 135 -60 141.7 19.8 61.0 41.1 0.82
degrees degrees
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RC06-46 707274 3176190 -90 62.5 44.2 62.5 18.3 2.05
degrees
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Lost hole at 62.5 m
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RC06-47 707276 3176191 315 -80 150.9 45.7 93.0 47.2 3.08
degrees degrees
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RC06-48 707123 3176282 135 -55 160.0 48.8 94.5 45.7 0.78
degrees degrees
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including 70.1 76.2 6.1 2.81
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Cerro de Oro (east side of hill)
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RC06-49 707357 3175670 90 -60 89.9 0.0 12.2 12.2 0.52
degrees degrees
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RC06-50 707350 3175666 180 -50 93.0 0.0 35.1 35.1 1.66
degrees degrees
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RC06-52 707230 3175534 135 -55 77.7 6.1 38.1 32.0 2.53
degrees degrees
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including 18.3 36.6 18.3 4.01
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Cerro de Oro (west side of hill)
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RC06-53 707035 3175643 315 -65 83.8 0.0 48.8 48.8 1.43
degrees degrees
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RC06-54 707035 3175643 -90 89.9 0.0 41.1 41.1 1.40
degrees
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Alteration anomaly between La Cruz and Cero de Oro
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RC06-51 707380 3175960 270 -50 86.9 0.0 12.2 12.2 0.27
degrees degrees
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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. One assay in RC06-47 was cut from 41.5 g/t to 17 g/t Au. The uncut average for this intersection is 3.87 g/t Au.

Grayd Resource is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in Mexico which is highly prospective for gold and silver mineralization. The Company's Officers and Directors are very experienced in all aspects of mineral exploration, development and production and have been involved with several successful mining projects over the past 20 years.

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.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/GYD1106.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
    (604) 684-9877 (FAX)
    Website: www.grayd.com
    or
    Freeform Communications Inc.
    (604) 288-7222