SOURCE: Grenville Gold Corporation

January 16, 2007 09:20 ET

Grenville Announces Rio De Oro JV With Acquisition of 80,000 ha Mineral Concessions in Southern Ecuador

VANCOUVER, BC -- (MARKET WIRE) -- January 16, 2007 -- Grenville Gold Corporation (TSX-V: GVG) (PINKSHEETS: GVLGF) ("Grenville" or "the Company") is pleased to announce the acquisition of an initial 80,000 hectares in 16 mineral concessions from the Ministerio de Energia y Minas in the El Oro province of southern Ecuador referred to as the "Rio De Oro" or "River of Gold" Project.

The 80,000 hectares are centrally located in Ecuador's traditional gold producing region of Pinas and Zaruma-Portovelo. The Zaruma-Portovelo Mining district has historic production of more than 4.5 million ounces of gold and 19 million ounces of silver, as well as significant tonnages of copper, zinc and lead concentrates. The bulk of gold, silver and base metals was produced mainly from the Portovelo Mine at the southern end of the Portovelo-Zaruma-Minas Nuevas mineralized vein system.

The mineralized vein system in the district has been traced on surface for several kilometers along strike and all of the concessions areas host quartz-sulphide veins and stock works. Mineralization is associated with two major northwest-southeast trending faults, the Pinas Fault and the Puente Busa-Palestina Fault, which are well defined. Gold and silver ore is known to occur over a vertical extent of 1200 meters but historical production has been confined to near-surface operations and there has been no modern exploration for structurally controlled downdip payshoots and strike extensions. Exploration work will also focus on disseminated ore types, which were not of economic interest for producers at the turn of the century.

The Incas were producing gold in the region prior to the arrival of the Spanish in the 16th century. Most of the production occurred between 1896 and 1950, when the South American Development Company (SADCO) recovered some 3.5 million ounces of gold and 17 million ounces of silver from 8 million tons of ore mined from the Portovelo-Zaruma and Minas Nuevas operations. The Portovelo shaft reached a depth of 660m below surface and the mining operations on the multiple vein system extended over 2.6km of strike. By 1946 SADCO stopped all exploration and development work and concentrated on mining the remaining high-grade stopes (cut-off grade of 12.5 g/t of gold).

Subsequent mining activity in the area has been mostly by relatively small and informal operations owned by individuals and small miners' associations from shallow underground workings. With the exception of limited exploration programs by various companies on individual concessions in the area, there has been no systematic attempt to define new ore bodies within the Zaruma-Portovelo district in the last 50 years until an exploration program in 2000-2001 by Iamgold. Information compiled by Iamgold ("Iamgold to drill multi-million ounce Zaruma-Portevelo Mining District," www.sedar.com; May 31, 2000) was relied upon for this release. Iamgold halted its exploration in this area in 2001 but continues to have significant interests in Ecuador, specifically the 2.8 million ounce Au and 18.2 ounce Ag Quimsacocha Deposit located in southern Ecuador near the town of Cuenca, 408 km south of Quito.

Grenville's Ecuadorian subsidiary Minera MineGrenville S.A. has established corporate offices in Machala and is planning an aggressive exploration program for the "River of Gold" project. The initial focus will be establishing the extent of mineralized vein systems on the property, systematic sampling and structural mapping to locate downdip targets. MineraMine Grenville will also actively pursue other opportunities in Ecuador to expand its mining interest.

Grenville is also pleased to announce it has entered into a joint venture agreement with Buckingham Group Partnership I Limited ("the Partnership"). Under the terms of the agreement both parties will share equally in the costs of the acquisition and exploration of the Ecuadorian properties. The Partnership is seeking additional partners to explore and develop the properties due to the large size of the land package and its potential.

About Grenville Gold Corporation

Grenville Gold Corporation (www.grenvillegold.com) is a junior resource company seeking prospective properties in Peru and Ecuador. Parkman Diamond is a subsidiary of Grenville Gold exploring for diamonds near North Bay, Ontario. 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

  • Contact:

    Paul Gill
    (604) 669-8842
    Email Contact

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