Grenville Gold Corporation

Grenville Gold Corporation

September 16, 2009 12:59 ET

Grenville to Acquire Claims Adjacent to Silver-Gold Bulk Tonnage Target at Silveria Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) - Grenville Gold Corporation's ("Grenville" or "the Company") (TSX VENTURE:GVG)(PINK SHEETS:GVLGF)(FRANKFURT:F9I)(WKN:A0KELU) 99.99% owned subsidiary Minera Grenville S.A.C., has entered into a Letter of Intent Agreement (LOI) with Compania Minera Sunicancha S.A.C. (Sunicancha) to purchase 100% of 13 claims owned by Minera Sunicancha S.A.C. totalling 1,250 Ha. The purchase price is $2 million USD. Grenville has paid $25,000 USD upon siging an LOI and will seek partners to finance the transaction. If $2 million is not paid by December 27, 2009, Grenville may request a two month extension to the payment deadline by paying a further $25,000 USD.

The Silveria Property upon completion will cover 7,272 Ha and is located 80 kilometers east of Lima, Peru near the town of San Mateo. The property is 30 kilometers south-west of Pan American Silver's Morococha Silver Mine and Peru Copper's Toromocho Porphyry Copper Project. Grenville's Silveria claims encompass a majority of the high grade, past producing Pacococha, Millotingo, Silveria and Germania Mines.

Highlighted Silveria Results

Sample # Vein Au g/t Ag g/t Cu % Pb % Zn %
PA-17 Germania 0.325 274 3.90 3.65 4.92
PA-21 Reserva 0.322 103 0.13 2.32 19.70
PA-28 Ernesto Segundo 0.717 2200 0.12 6.79 8.85
PA-34 Millotingo 2.630 401 0.01 0.04 0.07

Preliminary exploration results reported by Gilbertson and O'Donovan (2008) reveal that the mineralized rock on the Property(i) contains up to 279.0g/t silver with an average content of 57.8g/t (n equals 19). The base metals are locally strongly enriched with lead and zinc concentrations reaching up to 6.93% and 13.05% respectively and averaging 1.88% (n equals 19) and 2.72% (n equals 19) respectively. Copper concentrations average 0.44% (n equals 19). Gold contents reach up to 1.57g/t and average 0.25g/t (n equals 19). This recognizance survey was performed in order to broadly characterize the Property's mineralization.

The mineralization textures and associated alteration, and geochemical characteristics at Silveria are consistent with the epithermal deposit model. Structural geologic interpretations combined with the geochemical studies suggest the Millotingo mine is stratigraphically higher in the epithermal system where precious metals are enriched and base metals depleted.

Gilbertson and O'Donovan (2008) report that thin (less than 10 centimetre wide), typically prismatic quartz veins with up to 15% fine pyrite, locally form sheeted and stockworked zones in outcrop at the top of Pacococha and Germania. Quartz-pyrite alteration is often associated with areas of strong quartz vein development.

The Authors note that veins and alteration occurs over relatively large areas and represent a potential bulk target. Gold has never been targetted at Silveria although several anomalous gold samples have been collected.

Based upon published information, mine plans, production records and reserve estimations obtained from the operators, the historic production amalgamated by the Godden and Stone (2007) indicate that 2.6 million tonnes of ore was processed at Millotingo producing:

Silver (oz) Gold (oz) Copper (lb) Zinc (lb)
39,000,000 90,000 97,000,00 44,000,000

In addition, extensive records exist for the Pacococha Mine. The same Authors indicate that 2.7 milion tonnes of ore was processed producing:

Silver (oz) Gold (oz) Copper (lb) Zinc (lb) Lead (lb)
8,057,156 unknown 90,000,000 100,000,000 30,000,000

These historic numbers give an indication of the scope of the previous operations and is a clear indication that significant gold mineralization occurs near Millotingo and most likely in other areas of the Property. Grenville intends to first identify the gold rich zones within the Millotingo camp and define its relation to the polymetallic mineralization. Gilbertson and O'Donovan (2008) report several gold-mineralized quartz-pyrite dominant rock-chip grab samples were taken from mine dumps at portals accessing veins for which historic records do not mention gold mineralization. The Authors consider this very significant in that it indicates that quartz-pyrite dominant veins, which were likely not a focus of historic mining, represent valid exploration targets. Moreover, these veins may develop preferentially in secondary tensional structures, which form at oblique angles to the main shears.

(i) Only those samples collected within Grenville's Claims and that are characterized by more than 10g/t silver have been included in this statistical analysis.

The technical information has been reviewed by Luc Pigeon, M.Sc., P. Geo and Qualified Person for NI 43-101 purposes at Grenville's Peruvian Properties.

On behalf of the Board of Directors,

A. Paul Gill, President & Director

We Seek Safe Harbor.

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