SOURCE: Grenville Gold Corporation

January 17, 2007 09:20 ET

Grenville Acquires Pacococha & Milotingo Mines in Peru

VANCOUVER, BC -- (MARKET WIRE) -- January 17, 2007 -- Grenville Gold Corporation ("Grenville" or "the Company") (TSX-V: GVG) (PINKSHEETS: GVLGF) is pleased to announce that its Peruvian subsidiary, Inversiones Mineras Alexander S.A.C., has acquired mineral concessions from the Ministerio de Energia y Minas Peru which encompass the past-producing Pacococha & Milotingo Mines located in the San Mateo Mining District, Province of Huarochiri, Department of Lima, Peru. Both were underground operations and produced silver, copper, zinc and lead from 1960-1992.

Pacococha is located 98 kms from Lima by paved highway and is accessible from the highway via a 27 km gravel road. The property is located from 4,600 to 5,000 meters above sea level and is four kilometers northeast of the Milotingo mine. The nearest population centre is the town of San Mateo, which is located to the east on the same access road. There has been production in the San Mateo district since colonial times. The mines were connected to the electrical grid with high-tension wires by the joint efforts of Minera Pacococha S.A. and Cia. Minera Milotingo S.A. Access to the electrical grid was crucial to control energy costs, however the mines eventually were closed due to low metal prices and lack of finances.

Grenville has retained the services of MineFill Services Inc., to complete independent and NI 43-101 compliant reports on the properties. Grenville is currently in the process of obtaining production records, information related to the buildings, equipment and other facilities in both locations in order to assist this process.

The nearest permitted mine is the Coricancha Mine, formerly known as the Tamboraque Mine, 100% owned by Gold Hawk Resources (see Stockwatch, November 17, 2006). The Coricancha Mine is accessible via the same gravel road as Pacococha and Milotingo. The NI 43-101 report published by Rodney D. Lamond, P. Eng. for Gold Hawk Resources on the Tamboraque Mine contains the following passage relating to the Milotingo Mine:

"The vein system which has been subjected to past production is located 2 km to the east of Tamboraque and is known as the Milotingo system. Milotingo is located at an elevation varying from 4,100 to 4,800 m and is characterized by narrow (0.5-1.0 m) rich silver veins that have been mined from 1962 to 1992. It is believed that the mine was shut down due to financial reasons. Milotingo operated a 350-tpd mill with average head grade of 24 oz Ag/t Ag from 1962 until 1973. Total mine production over the 30 years was 2.6 million tonnes averaging 16 oz Ag/t with gold credit as a by-product. During this period, a total of 95,000 tonnes of concentrates was produced containing about 39 million oz Ag and 90,000 oz Au. The mine has reported mineral resource of 661,000 tonnes grading 12.8 oz Ag /t (September 1992). It is the Authors' opinion that the estimate is not compliant with National Instrument 43-101," (page 24, "43-101 Technical Report On The Tamboraque Project Department Of Lima, Peru," Lamond, Raymond, P.Eng, January, 2006)

Grenville also announces that it has granted 200,000 stock options at .50 to certain directors, employees and consultants.

About Grenville Gold Corporation

Grenville Gold is a junior resource company seeking prospective properties in Peru and Ecuador. The company has three subsidiaries: Inversiones Mineras Alexander S.A.C. in Peru, Minera MineGreville S.A. in Ecuador and Parkman Diamond Corp. in Ontario, Canada. Grenville Gold plans to leverage the experience of its Board and Management in exploration and mining to develop its growth strategy in North and South America. For further information contact 604-669-8842 ext. 103.

On behalf of the Board of Directors,

"A. Paul Gill"
President & CEO

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.

Contact Information

  • Grenville Gold Corporation
    Suite 207 - 475 Howe St.
    Vancouver, B.C. V6C 2B3
    T: (604) 669-8842
    C: (604) 669-9204