Greystar Resources Ltd.

Greystar Resources Ltd.

February 21, 2008 02:00 ET

Greystar Advances Programs Towards Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2008) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that a 40,000 metre diamond drill program designed to infill areas of higher-grade mineralization on its wholly owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia is underway.

The program, which is aimed at moving the higher-grade gold bearing intervals from the indicated to the measured resource category by increasing the drill density to 25 metre spacings in selected areas, is expected to be complete in the third quarter of 2008.

"Increased drill density on 25 metre centers in a horizontal test panel within the core of the Perezosa tunnel in 2006 and recently analyzed using the most recent resource model resulted in an 8.4% jump in tonnage, a 2.6% increase in gold grades and 11.1% more contained ounces of gold in the measured and indicated resource categories, plus a 6.1% increase in tonnage, a 0.9% decrease in gold grade and a gain of 5.1% in ounces of contained gold in the total resources," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "The current drill program is in the early days but the values from the late 2007 infill drill program are showing confirmation of the continuity of higher-grades with hole DM07-12 returning 13.87 grams gold per tonne over 5.25 metres and 17.24 grams gold per tonne over 5.4 metres."

The latest results from the closer spaced program also included 5.16 grams gold per tonne over 6 metres, 3.72 grams gold per tonne over 10.65 metres and 40.4 grams gold per tonne over 3.85 metres. These positive results are important as the infill drilling is required to move the higher grade resources currently defined as indicated resources into the measured category. The December 2007 resource estimate contained a lower overall gold grade in the measured category when compared to the indicated resource estimate because the higher-grade intervals were not drilled at sufficient density to be classified in the measured category. About two thirds of the 2008 drill program will be dedicated to better defining the higher-grade intervals.

In order to advance the understanding of other areas of the deposit to the same level as the core of the Peresoza area, the underground work at Veta de Barro is progressing with an advance at 85 metres and a 158 metres pilot drill hole from within the drift now complete. This opening of the deposit is at a level that is approximately 200 meters in elevation above the Peresoza working.

On the new target exploration, the first drill hole testing the Las Animas target approximately one kilometre south of the main Angostura deposit has been completed at a depth of 409.1 metres. The diamond drill rig is being moved 250 metres to the south.

Along with the ongoing drill programs, Greystar is making advances in the areas of metallurgy, rock mechanics, environmental monitoring, community consultation and infrastructure requirements, all of which are needed for completion of a Feasibility Study. Rock mechanic and pit stability studies, which started in September 2007, are on schedule and are expected to be completed by September 2008.

In regards to infrastructure work for the mine project, the design work for the Vetas access road from the existing road to the La Paez area is 70% complete. On the environmental front, water quality monitoring programs held in cooperation with representatives of local environmental authority are being carried out every three months.

Greystar has also purchased two parcels of land to facilitate the exploration of Las Animas and Violetal areas of the property and has purchased 50% of one of the 10% net profit royalties that cover half of one concession lying over the Angostura resource. A net profit royalty is a royalty paid from the profit from an operation after outlays including depreciation and other non-cash expenses.

The latest drill results include:

Interval Gold Silver
Hole Intercept From (m) To (m) (m(iii)) (gm/t) (gm/t)
V609FW 320.7 339.0 18.3 1.12 1.9
AL07-12 --------------------------------------------------------
V611 471.0 503.0 32.0 0.83 5.4
V601 69.0 82.0 13.0 0.81 5.7
V604HW 298.0 304.0 6.0 5.16 1.9
AL07-13 --------------------------------------------------------
V604fW 304.0 319.0 15.0 1.31 2.3
V611 367.85 379.2 11.35 0.5 3.1
V424 104.1 115.25 11.15 1.06 3.2
AL07-14 --------------------------------------------------------
V434 338.1 346.5 8.4 0.73 2.4
V605HW 196.1 208.55 12.45 0.53 1.7
AL07-16 V605FW 210.3 239.0 28.7 0.69 3.6
V411 239.0 250.05 11.05 1.29 9.4
V605 93.0 101.5 8.5 3.45 6.7
ALE07-34 --------------------------------------------------------
V438 185.0 199.0 14.0 0.58 8.1
BODY3 276.05 288.0 11.95 1.45 39.9
ALE07-35 --------------------------------------------------------
BODY3 298.0 316.0 18.0 1.85 11.5
ALE07-36 V439 218.0 229.3 11.3 0.71 1.1
ALE07-37 V407 171.8 173.35 1.55 18.4 6.6
ALE07-38 BODY3 362.9 370.0 7.1 2.46 20.9
V403 205.0 216.0 11.0 0.81 3.3
NEW 249.9 265.4 15.5 2.64 14.5
DM07-12 --------------------------------------------------------
V601 300.0 305.4 5.4 17.24 82.6
V609 381.0 386.25 5.25 13.87 33.7
NEW 246.0 266.0 20.0 0.88 4.2
NEW 295.0 298.85 3.85 40.42 30.1
DM07-13 --------------------------------------------------------
V601 348.6 360.5 11.9 0.9 5.6
V609 387.2 397.85 10.65 3.72 31.8
V627 128.0 141.0 13.0 0.52 0.3
DM07-14 --------------------------------------------------------
V632 256.1 280.05 23.95 0.67 1.9
V609-602 26.0 59.0 33.0 0.77 9.5
DM07-15 V605 92.7 109.2 16.5 0.88 6.3
V612 139.7 151.25 11.55 0.53 0.7
LL07-14 BODY3 11.8 38.6 26.8 0.99 32.8
V1001 12.2 45.7 33.5 1.21 33.5
LL07-15 --------------------------------------------------------
BODY3 76.0 90.0 14.0 0.65 36.1
LL07-16 BODY3 30.0 36.0 6.0 3.33 32.8
V920 261.0 269.7 8.7 0.97 1.1
NA07-11 --------------------------------------------------------
V910 314.1 323.2 9.1 0.52 14.6
BODY3 190.5 200.7 10.2 0.77 14.8
NA07-12 --------------------------------------------------------
BODY3 227.3 239.0 11.7 0.96 11.4
NA07-13 BODY3 153.5 160.3 6.8 2.65 64.5
BODY3 220.0 242.85 22.85 0.98 17.9
NA07-15 --------------------------------------------------------
NEW 313.0 333.0 20.0 1.32 3.7
V207 26.0 37.4 11.4 0.54 6.5
VB07-06 --------------------------------------------------------
V209 157.65 160.0 2.35 8.26 4.1
Note: (m(iii)) - Down-hole width, not corrected but based on drill
holes and structural dip of the mineralization,
the interval is considered to be close to true

Based on the December 2007 resource update estimation, the Angostura deposit hosts a measured resource of 88.49 million tonnes grading 0.79 gram gold and 4.0 grams silver per tonne for 2.247 million contained ounces of gold and 12.08 million contained ounces of silver; an indicated resource of 145.826 million tonnes grading 1.69 grams gold and 8.0 grams silver per tonne for 7.905 million contained ounces of gold and 37.76 contained ounces of silver. Combined the measured and indicated resources host 10.15 million ounces of gold and 49.8 million ounces of silver in 234.32 million tonnes of material grading 1.35 grams gold per tonne and 7.3 grams silver per tonne, plus an inferred resource of 3.43 million ounces of gold in 77.7 million tonnes grading 1.37 grams gold per tonne. Resource estimation was undertaken in compliance with CIM Mineral Resource and Mineral Reserve definitions that are referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. A location map of the Angostura drilling, along with a map of the underground tunnel work, and an updated concession map can be accessed from our home page link at Greystar's website:


The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff (which includes a qualified person, Frederick Felder, P.Geo., for the purpose of National Instrument 43-101, and Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects). Frederick Felder, P.Geo., has over 30 years of mineral exploration experience, is a member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia and is the qualified person responsible for this release.

The Company has implemented a quality control program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. Under these quality assurance measures, drill core is sawn in halves with one half of the core prepped on site and samples shipped to ALS-Chemex Laboratory (ISO 9002 registered) in Vancouver, B.C. for analysis. The remainder of the core is retained for future assay verification. Gold analysis is conducted by fire assay (one assay tonne) using an atomic absorption finish. The laboratory re-assays using the ALS-Chemex protocol, and additional checks may be run on anomalous values. Greystar has independent re-analysis and sample preparation checks run at other accredited laboratories. The Company also introduces background blanks prepared from previously analyzed core samples from the Angostura Project.

Forward-Looking Statement

Certain statements included in this release are "forward-looking statements" within the meaning of Canadian securities legislation. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold prices, results, mineral resources and anticipated grades. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, resource estimates, exploration, development and operating risks, limited experience with development-stage mining operations, dependence on one principal exploration stage property, political and foreign risk, uninsurable risks, competition, production risks, environmental regulation and liability, government regulation, currency fluctuations, potential title disputes and dependence on key employees as set out under the heading "Risk Factors" in the Annual Information Form of the Company dated March 30, 2007 which is available in SEDAR. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All dollar amounts are in Canadian dollars, unless otherwise stated.

No Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

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