Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

October 17, 2005 17:51 ET

Greystar Boosts Bulk Tonnage Potential at Angostura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2005) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that the latest drill results continue to substantially enhance the volume of mineralization that appears suitable for a bulk tonnage, low-cost open pit mining operation at its wholly-owned Angostura gold-silver deposit in northeastern Colombia.

The results from 4,276 metres of drilling in eleven new holes contained an impressive 130 vein intercepts that returned above cut off values for both the oxide and sulfide zones of the deposit yielding a cumulative thickness of 1,580 metres.

"The robust nature of the Angostura gold system continues to be proven with 37% of the recently drilled meterage returning an average weighted grade of 1.31 grams gold per tonne over an average intercept width of 12.16 metres," states Greystar's Executive Vice President, Frederick Felder. "By combining broad zones of mineralization with the higher grade shoots encountered, not only is the bulk tonnage potential at Angostura increased but the discovery of additional structures and further delineation of known veins showing greater widths typically results in a reduction of internal waste material."

A good example is in the Diamante area where hole DM05-16 intersected a combination of higher-grade shoots and wide veins that gives rise to a 159.3 metre mineralized zone hosting Veins 23 to 26. Of this interval 78.3% is made up of vein intercepts including 6.1 grams gold per tonne over 19.4 metres in Vein 24 and 13.24 grams gold per tonne over 10.2 metres in Vein 25. Previously reported drill hole DM05-19 drilled above this hole cut 13.23 grams gold per tonne over 8 metres, while new holes 21 and 23 drilled 50 and 100 metres to the east intercepted 8.89 grams gold per tonne over 6.85 metres and 16.35 metres grading 1.66 grams gold per tonne, respectively. Drill hole DM05-22 drilled 100 metres above these holes returned 31.5 metres grading 2.17 grams gold per tonne.

Higher grade shoots also continued to be intercepted in the La Alta area with hole AL05-15 returning 14.47 grams gold per tonne over 6 metres. Drill hole AL05-12 drilled 50 meters to the east and farther to the north cut multiple veins including a wide zone of 18.35 metres averaging 1.61 grams gold per tonne in Vein 359. Just like the Diamante area, the high density of vein intercepts suggests a reduction in internal waste. Examples are hole Al05-12 where Veins 308, 159, 2 and 3 comprise 56.1% of a 138 metre interval and hole Al05-15, where Veins 4, 5, 64, 7, and 65 make up 58.7% of a 132.85 metre section.

Both surface and underground drilling returned encouraging results with hole USI05-21 hitting 8.85 grams gold per tonne over 7.45 metres and moving 50 metres to the west, hole USI05-19 returned 41 metres grading 1.54 grams gold per tonne and 26.6 metres averaging 1.3 grams gold per tonne. Surface hole SIO5-18 returned 28 metres grading 1.09 grams gold per tonne and 0.97 gram gold per tonne over 50 metres.



Highlights for the latest drill results include:

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From To Interval Gold Silver
Hole Intercept (m) (m) (m(iii)) gm/t gm/t
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AL05-12 V308 96.0 111.95 15.95 1.12 3.4
------------------------------------------------------------
V1 133.3 146.5 13.2 1.35 8.7
------------------------------------------------------------
V359 164.65 183.0 18.35 1.61 5.6
------------------------------------------------------------
V2 197.5 222.3 24.8 1.08 3.2
------------------------------------------------------------
V4 317.0 332.55 15.55 1.51 5.8
------------------------------------------------------------
V5 346.0 385.0 39.0 1.51 8.9
------------------------------------------------------------
V7 394.05 411.6 17.55 1.25 3.4
--------------------------------------------------------------------
AL05-15 V5HW 289.3 299.0 9.7 2.28 5.3
------------------------------------------------------------
V5/V64 299.0 305.0 6.0 14.47 33.9
------------------------------------------------------------
V5FW 305.0 329.0 24.0 1.2 8.3
--------------------------------------------------------------------
DM05-16 V22 313.0 343.0 30.0 0.7 1.2
------------------------------------------------------------
V23FW 351.0 363.75 12.75 1.15 2.8
------------------------------------------------------------
V24 372.0 402.0 30.0 0.71 1.9
------------------------------------------------------------
V24 402.0 421.4 19.4 6.1 10.6
------------------------------------------------------------
V25 428.0 438.2 10.2 13.24 13.9
--------------------------------------------------------------------
DM05-21 V323-V324 107.0 124.3 17.3 0.94 3.6
------------------------------------------------------------
V21 189.35 227.5 38.15 0.83 3.0
------------------------------------------------------------
V22 227.5 234.35 6.85 8.89 70.9
--------------------------------------------------------------------
DM05-22 V8 12.6 29.75 17.15 3.84 9.6
------------------------------------------------------------
V22 187.5 211.0 23.5 0.73 1.6
------------------------------------------------------------
V23-V24-V11 239.5 271.0 31.5 2.17 5.7
------------------------------------------------------------
includes 259.0 277.0 18.0 3.24 2.2
------------------------------------------------------------
V25-V26 299.0 331.0 32.0 0.81 1.1
--------------------------------------------------------------------
DM05-23 V9 58.0 77.0 19.0 0.62 4.4
------------------------------------------------------------
V23 234.0 258.0 24.0 0.54 3.2
------------------------------------------------------------
V24 287.0 302.0 15.0 0.74 4.5
------------------------------------------------------------
V25 308.0 319.0 11.0 1.51 4.4
------------------------------------------------------------
V28 427.0 443.35 16.35 1.66 1.5
--------------------------------------------------------------------
SI05-18 V353 44.0 72.0 28.0 1.09 10.5
------------------------------------------------------------
V56 84.0 134.0 50.0 0.97 17.6
------------------------------------------------------------
NEW 144.0 158.5 14.5 1.17 2.1
------------------------------------------------------------
NEW 181.2 194.0 12.8 1.97 2.8
------------------------------------------------------------
V360 225.0 258.0 33.0 0.89 1.3
--------------------------------------------------------------------
USI05-19 V53 91.4 104.9 13.5 1.13 2.5
------------------------------------------------------------
V51-V364 179.0 220.0 41.0 1.54 0.5
------------------------------------------------------------
V29/V314 250.0 276.6 26.6 1.3 6.5
--------------------------------------------------------------------
USI05-20 V52 89.0 112.05 23.05 1.03 2.3
------------------------------------------------------------
V331 152.55 179.0 26.45 1.0 1.1
--------------------------------------------------------------------
USI05-21 V318 84.0 96.4 12.4 1.49 15.4
------------------------------------------------------------
V31 226.0 233.45 7.45 8.85 18.6
------------------------------------------------------------
V56 256.0 275.6 19.6 1.05 2.2
--------------------------------------------------------------------
VB05-19 V554 0 17.0 17.0 0.75 8.1
------------------------------------------------------------
V555 25.5 40.0 14.5 1.28 65.2
------------------------------------------------------------
V563 203 220.25 17.25 0.66 0.6
--------------------------------------------------------------------
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 width.


Greystar is especially pleased by the results, which continue to show that the Angostura gold deposit represents a very large, near surface mineralized system that appears suitable for a bulk tonnage, low-cost open pit mining operation. Based on the August 2005 resource calculation, the Angostura deposit contains 5.83 million ounces of gold and 24.6 million ounces of silver within an indicated resource of 148.14 million tonnes grading 1.22 grams gold per tonne and 5.17 grams silver per tonne, plus another 4.47 million ounces of gold and 21.5 million ounces of silver within an inferred resource of 123.3 million tonnes grading 1.13 grams gold per tonne and 5.42 grams silver per tonne using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for sulfide (Press Release August 16, 2005). A location map of the Angostura drilling, along with a map of the underground tunnel work, can be accessed from our home page link at Greystar's website: www.greystarresources.com.

REVIEW BY QUALIFIED PERSON, QUALITY CONTROL AND REPORTS

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, which outlines standards of disclosure for mineral projects).

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 quarters (HQ) or halves (NQ), with one quarter or one half of the core 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 reassays 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

Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

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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