Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

May 24, 2005 17:00 ET

Greystar Confirms Northern Extension at Angostura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2005) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that diamond drilling in between the Veta de Barro area and the La Alta area of the multi-million ounce Angostura gold-silver deposit in northeastern Colombia has returned 9.5 metres grading 5.28 grams gold per tonne, plus another 17 metres grading 3.19 grams gold per tonne.

The results from this previously untested area, known as El Pozo, further solidifies Greystar's interpretation that the Veta de Barro area forms the northern extension of the Main deposit, which based on the March 2005 calculation hosts 3.45 million ounces of gold and 14.5 million ounces of silver within an indicated resource of 87.26 million tonnes grading 1.23 grams gold per tonne and 5.2 grams silver per tonne, plus another 4.52 million ounces of gold and 16.9 million ounces of silver within an inferred resource of 111.51 million tonnes grading 1.26 grams gold per tonne and 4.7 grams silver per tonne (Press Release April 4, 2005).

The Company is also particularly pleased with the additional drilling aimed at further defining the western Diamante area, the infill drilling in the southwestern Silencio area and with the results from the underground drilling.

At the prolific Silencio area, the latest holes returned broad zones of mineralization with 92.4 metres grading 1.08 grams gold per tonne in one hole and a second hole drilled 50 metres below cut 112.6 metres grading 1.34 grams gold per tonne. Several new veins were also encountered with hole SI05-06 returning 1.31 grams gold per tonne over 26 metres and 1.46 grams gold per tonne over 10.5 metres.

Moving to the Alta area, drilling encountered good mineral continuity in Veins 2 and 7 with 17.26 grams gold per tonne over 5.1 metres and 5.06 grams gold per tonne over 10.7 metres, respectively.

In the central Diamante area, the main objective was to infill in the previously insufficiently tested central core area, while on the western edge of the Diamante area a shoot formed on the intercept of Veins 52 and 314 yielded 2.18 grams gold per tonne over 29.8 metres and a shoot formed by the Vein 10 and Vein 351 intercept returned 2.31 grams gold per tonne over 16.3 metres. Other notable results were 4.72 grams gold per tonne over 7 metres in Vein 6 and 3.54 grams gold per tonne over 8.8 metres in Vein 68.

Underground drilling, which targeted the Vein 28 - Vein 52 intercept area, as well as the deeper part of the central Silencio area, continued to return promising grades with hole USI05-05 cutting 5 metres grading 4.86 grams gold per tonne, plus another 19 metre interval grading 2.9 grams gold per tonne. Underground drilling also intersected both Vein 12 and 13, which contained 1.94 and 1.65 grams gold per tonne over 9.2 and 16.3 metres, respectively. Meanwhile, fan drilling from the station on the North crosscut hit the Vein 28 - Vein 52 intercept yielding 3.2 grams gold per tonne over 19 metres in one hole with a second hole cutting 6.31 grams gold per tonne over 22.6 metres. With higher productivity on the tunnel program more drill stations have been established underground, and two machines are operating continuously.

The month of April saw a record amount of drilling with 5,129 metres, bringing the total to 17,064 metres for the year as of May 18, 2005. The scheduled 42,000 metres of drilling for this phase of the Angostura program is expected to be completed on budget by mid-June.



The latest drill results include:
---------------------------------------------------------------------
Hole Intercept From To Interval Gold Silver
(m) (m) (m iii) gm/t gm/t
---------------------------------------------------------------------
AL05-05 V2 161.5 167.0 5.50 17.26 37.6
----------------------------------------------------------
V5 259.0 274.0 15.0 2.02 7.0
----------------------------------------------------------
V7 290.85 301.5 10.65 5.06 4.9
---------------------------------------------------------------------
AL05-06 V68 116.55 125.3 8.75 3.54 15.0
----------------------------------------------------------
V2 279.2 280.15 0.95 14.25 55.2
---------------------------------------------------------------------
DM05-05 V6 102.0 109.0 7.0 4.72 6.0
----------------------------------------------------------
V52 259.4 271.0 11.6 0.99 3.1
---------------------------------------------------------------------
DM05-06 V52/V314 76.2 106.0 29.8 2.18 4.7
----------------------------------------------------------
V12 276.0 290.0 14.0 1.26 14.4
----------------------------------------------------------
V60 338.0 359.0 21.0 0.87 11.8
----------------------------------------------------------
V13 366.0 380.85 14.85 1.31 54.0
---------------------------------------------------------------------
DM05-08 V8 7.0 12.0 5.0 1.24 3.6
----------------------------------------------------------
V22 57.0 62.1 5.10 1.61 14.8
---------------------------------------------------------------------
DM05-10 V23 2.35 7.50 5.15 1.81 3.6
----------------------------------------------------------
V10/351 69.0 85.25 16.25 2.31 3.9
---------------------------------------------------------------------
SI05-06 NEW 0.0 26.0 26.0 1.31 4.6
----------------------------------------------------------
NEW 175.9 186.35 10.45 1.46 1.9
----------------------------------------------------------
V316-
V360-V15 226.5 318.85 92.35 1.08 4.5
---------------------------------------------------------------------
SI05-07 NEW 20.0 38.0 18.0 0.97 5.0
----------------------------------------------------------
V19 173.0 182.0 9.0 1.46 1.4
---------------------------------------------------------------------
SI05-08 V316-
V360-V15 87.0 199.6 112.6 1.34 2.8
---------------------------------------------------------------------
USI05-04 V450 14.0 18.45 4.45 1.87 42.9
----------------------------------------------------------
V311 66.0 73.75 7.75 1.43 12.6
---------------------------------------------------------------------
USI05-05 V312 89.75 101.6 11.85 0.66 16.0
----------------------------------------------------------
V14/V320 132.5 137.45 4.95 4.86 4.7
---------------------------------------------------------------------
USI05-06 V12 22.8 32.0 9.20 1.94 7.3
----------------------------------------------------------
V13 90.7 107.0 16.3 1.65 33.6
---------------------------------------------------------------------
USI05-07 V28/52 25.0 44.0 19.0 3.20 8.6
---------------------------------------------------------------------
USI05-08 V28/52 29.0 51.6 22.6 6.31 5.0
---------------------------------------------------------------------
USI05-09 V455 57.0 76.0 19.0 2.90 0.7
----------------------------------------------------------
within 70.0 76.0 6.0 8.24 1.5
---------------------------------------------------------------------
VB05-06 NEW 145.0 154.5 9.50 5.28 6.8
----------------------------------------------------------
V366 279.0 296.0 17.0 3.19 10.1
----------------------------------------------------------
V363 340.4 366.3 25.9 0.97 2.3
---------------------------------------------------------------------
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.


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: http://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 under the guidance of Frederick Felder MSc, Executive Vice president and verified by David B. Rovig, P. Eng., the President of the Company, who is the qualified person 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 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 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.

Contact Information