SOURCE: Grenville Gold Corporation

September 04, 2007 14:36 ET

Grenville Begins to Secure & Priorize Stockpiles of Mineralized Rock for Transporation & Processing

VANCOUVER, BC--(Marketwire - September 4, 2007) - Grenville Gold Corporation (TSX-V: GVG) (PINKSHEETS: GVLGF) (FRANKFURT: F9I) (ISIN CA 3977181070/WKN: A0KELU) ("Grenville" or "the Company") announces, as per Section 21.2, 3.32 and 3.4.1 of the NI 43-101 on the Silveria Project, it has assessed the accessible rock dumps and identified, secured and priorized surface material ready for transport. Also, the Company will be stockpiling mineralized rock removed from the Alanzia and Reserva mine portals and various rock dumps located near access roads to these portals. No feasibility study has been performed on the project and no estimates are available as to the end value of the mineralized rock.

The above paragraph only refers to a small portion of the rock dumps on the Silveria property and does not include the tailings or the underground backfill. Locating and classifying rock dumps is crucial to the Company's short-term objectives. Up to 34 mine rock dumps were sampled and results were released June 4, 2007. Additional testing will confirm the grade and quantity of the material, but processing bulk samples is the most cost effective way to establish if this activity will produce positive cash flow. Currently, the operating costs for removal of mineralized rock from the underground to a mill is estimated at $ 45/tonne as per Section 21.2 (below).

"Grenville must be prepared to ship this material as we have identified a demand for mill feed in the vicinity of the Silveria Property," stated A. Paul Gill, President & CEO, "The estimated cost of extraction has been established based on past production and implementation of new techniques. Processing bulk samples from this material will identify cash-flow potential."

As announced in a news release dated July 17, 2007, Grenville has purchased the surface rights for 3,393 Ha, a land package which gives them control of all surface land underlying the Pacococho, Millotingo, Silveria and Germania mines, which are all former producers, located within the Silveria Project.

Grenville has previously reported that the Pacococha and Millotingo mines had produced 18 million ounces of silver. Additional information collected during the 43-101 process indicates that the known production from the former mines is estimated to be closer to 39 million ounces of silver.

Excerpts from the referenced 43-101 Report are provided below, the full report is available at: http://www.grenvillegoldcorp.com/Properties/Silveria/tabid/63/Default.aspx

21.2 Operating Cost Estimate

Rationalization of the stoping operations, a change in stoping strategies, the use of in-stope slushers, improved rock handling facilities and a more efficiently run mill would reduce the unit cost per tonne milled to an estimated target figure of about US$45, which amount comprises:

--  a target unit stoping cost of about US$20 per tonne of mill feed
    delivered to surface;
    
--  a target unit processing cost of about US$20 per tonne of mill feed,
    including transport costs from surface to the mill; and
    
--  a management overhead totaling about US$5 per tonne milled.
    

3.3.2 Mineralized Rock Dumps

Numerous mineralized surface rock dumps of various sizes exist across the Project area, especially in the Pacococha and Silveria mining areas. The presence of such material may be explained by the selective nature of vein drift development and stoping activity: individual veins were opened up/explored by means of vein drifting; stoping took place above only those sections of developed vein drift that were deemed to have intersected economic mineralization; and subeconomic material from the developed vein drifts was dumped as waste, either on surface or in mined-out stopes.

3.4.1 Short-Term Objectives

The Company's main short-term objective is to establish positive Project cash flow, at the earliest opportunity, by re-processing available tailings. The secondary short-term objective is to produce ore from the existing underground workings. To this secondary end, once all the relevant data is in place, formal reserve statements, reserve depletion models, stoping schedules and cash flow models will be compiled. Initially at least, produced material might be sold direct to adjacent operations for processing. Integrated with these objectives will be detailed considerations of the cash flow potential of either selling or processing material from the numerous mineralized rock dumps.

About Grenville Gold Corporation

Grenville Gold (www.grenvillegoldcorp.com) is a junior resource company seeking prospective properties in Peru and Ecuador. The company has three subsidiaries: 90% owned Inversiones Mineras Alexander S.A.C. in Peru which owns the Silveria Property which has a resource target of 40-100 ounces of Silver, Espanola Property and the Chorobal Property, Minera MineGreville S.A. in Ecuador which has an option to acquire the La Tigrera Project, and Parkman Diamond Corp. in Ontario, Canada which owns the Parkman Diamond Prospect. 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.

On behalf of the Board of Directors,

"Tom Thomsen"
Investor Relations

We Seek Safe Harbour

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:
    Tom Thomsen
    Investor Relations
    ph. (604) 669-8842
    Email Contact