Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

July 16, 2008 10:56 ET

Grayd Steps Out and Expands Gold Mineralization at La India

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2008) - Grayd Resource Corporation (TSX VENTURE:GYD) announces assay results from 28 reverse circulation holes (RC-08-316 to 343) drilled on its wholly owned La India Gold Project located in the state of Sonora, Mexico. Highlights include two drill intersections that show potential for significant expansion of the resource to the west. RC-08-343 intersected 33.5 m grading 1.20 g/t Au 70 m west of the January 2008 resource boundary and 180 m west of the last hole within the resource model. RC-08-342 ended in 16.8 m grading 1.18 g/t Au, and was drilled 270 m southeast of RC-08-343.

Grayd's CEO, Marc Prefontaine, states: "These holes are very significant in that they validate our geological modelling and demonstrate that the gold zone does in fact continue to the west. These intersections now confirm the gold zone is not contained to the current resource boundary, and opens up a large area for further resource expansion."

Another highlight was RC-08-336 that ended in 47.3 m grading 1.24 g/t Au. This is one of ten new holes drilled in the southeast part of the Viruela-La Cruz area within a zone of near-surface oxide gold mineralization.

Results from this hole add potential for improving the grade in this area from what was calculated in the current resource estimate. RC-08-336 intersected silica-clay alteration, but also some silica structures on trend with the higher grade La Cruz zone to the northeast. Further drilling is planned to follow-up on this hole which ended up being abandoned due to drilling difficulties. Other recent holes in the area verified the existence of wide-spread, potentially economic, mineralization.

Nine of the holes reported herein were drilled in the Viruela zone as part of the effort to bring this resource into the indicated category. Holes supported previous interpretations. Seven holes were drilled on a potential extension of the Cerro de Oro resource to the south. While well-altered rocks were intersected, gold grades were relatively low.

Two drills are working on the project with the current priority being to expand on and upgrade the January 2008 resource. Drilling within and adjacent to the resource areas will be completed in August. Thereafter, drilling will focus on new targets evolving from ongoing mapping and surface sampling.

A table of significant intercepts is given below. A map showing drill hole locations is attached and also available at www.grayd.com.

To view the map attached to this release please click on the following link: http://media3.marketwire.com/docs/0716gyd.pdf

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.

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 experienced in all aspects of mineral exploration, development and production and have been involved with several successful mining projects during the past 20 years.



La India Gold Project - Drill Summary

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Azi- Length From To Width Au
Zone Hole East North muth Dip (m) (m) (m) (m) g/t
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Viruela
-West RC-08-343 706322 3176328 0 -90 120.4 74.7 108.2 33.5 1.20

Viruela
-West RC-08-342 706505 3176058 225 -70 144.8 128.0 144.8 16.8 1.18

Viruela
-LaCruz RC-08-341 706890 3176207 270 -50 68.6 0 18.3 18.3 0.38

Viruela no significant
-LaCruz RC-08-340 706997 3176155 0 -90 50.3 intersection

Viruela
-LaCruz RC-08-339 706961 3176208 0 -90 47.2 0 16.8 16.8 0.70

Viruela no significant
-LaCruz RC-08-338 706367 3178071 0 -90 59.4 intersection

Viruela
-LaCruz RC-08-337 706973 3176308 0 -90 86.9 50.3 74.7 24.4 0.68

Viruela
-LaCruz RC-08-336 707049 3176023 315 -50 54.9 7.6 54.9 47.3 1.24

Viruela
-LaCruz RC-08-335 707050 3175958 0 -90 59.4 18.3 44.2 25.9 0.28

Viruela
-LaCruz RC-08-334 707050 3175958 135 -50 59.4 21.3 38.1 16.8 0.50

Viruela
-LaCruz RC-08-333 707119 3175775 315 -50 71.6 1.5 16.8 15.3 0.35

Viruela
-LaCruz RC-08-332 707029 3175563 270 -60 77.7 4.6 15.2 10.6 0.88

Cerro de
Oro RC-08-331 707083 3175533 180 -50 96.0 42.7 54.9 12.2 0.34

Cerro de
Oro RC-08-330 707063 3175567 0 -90 68.6 12.2 21.3 9.1 0.31

Cerro de
Oro RC-08-329 707090 3175491 267 -50 96.0 0 39.6 39.6 0.41

Cerro de
Oro RC-08-328 707156 3175462 212 -60 89.9 50.3 51.8 1.5 1.56

Cerro de
Oro RC-08-327 707090 3175496 225 -50 74.7 4.6 7.6 3.0 1.69

Cerro de
Oro RC-08-326 707123 3175478 90 -50 71.6 16.8 36.6 19.8 0.42

Cerro de
Oro RC-08-325 707123 3175423 135 -50 89.9 1.5 3 1.5 0.99

Viruela RC-08-324 706773 3176345 180 -60 71.6 9.1 22.9 13.8 0.59

Viruela RC-08-323 706775 3176348 93 -50 71.6 9.1 35.1 26.0 0.45

Viruela RC-08-322 706748 3176307 90 -50 129.5 9.1 18.3 9.2 1.62

Viruela RC-08-321 706727 3176535 90 -50 56.4 no significant
intersection

Viruela RC-08-320 706673 3176384 90 -50 89.9 0 12.2 12.2 0.29

Viruela RC-08-319 706752 3176534 0 -90 59.4 0 15.2 15.2 0.62

Viruela RC-08-318 706852 3176370 90 -50 96.0 25.9 59.4 33.5 0.58

Viruela RC-08-317 706857 3176371 270 -50 108.2 7.6 12.2 4.6 0.89

Viruela RC-08-316 706959 3176409 90 -70 68.6 33.5 50.3 16.8 1.23
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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
    (604) 684-9877 (FAX)
    Website: www.grayd.com