Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

January 08, 2007 19:52 ET

Greystar Cuts 1.61 g/t Gold Over 109.85 Metres at Angostura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that delineation drilling on its wholly owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia has returned 19.91 grams gold per tonne over 26.5 metres in hole ALE06-06 and 1.61 grams gold per tonne over 109.85 metres in hole VB06-06.

"The latest drill results from 18 holes continue to show instances of higher-grade values that are surrounded by broader lower-grade intervals in the Veta de Barro and La Alta areas," says Greystar's Executive Vice President, Frederick Felder, P.Geo.

Hole ALE06-06 was collared in the La Alta area of the Angostura deposit and along with the higher-grade interval noted above also yielded intercepts of 1.94 grams gold per tonne over 22 metres, 0.64 gram gold per tonne over 86.1 metres and 1.26 grams gold per tonne over 7.2 metres.

Moving 100 metres to the west, hole ALE06-09 intersected numerous lower-grade intervals, as well as 1.15 grams gold per tonne over 33 metres, 1.09 grams gold per tonne over 6 metres and 3.37 grams gold per tonne over 6.3 metres.

In the Veta de Barro area, holes were drilled on the eastern limit and to the south in the area of El Pozo and La Alta. Most noteworthy is hole VB06-06, which intercepted 17 close spaced mineralized structures in the El Pozo and La Alta areas including higher-grade intercepts of 6.15 grams gold per tonne over 11 metres, 21 metres grading 1.75 grams gold per tonne and 2.85 metres running 9.9 grams gold per tonne. These higher-grade values influenced the grade of wider mineralized intervals that returned 0.64 gram gold per tonne over 310.55 metres from 29.65 to 340 metres down hole and the 1.61 grams gold per tonne over 109.85 metres from 437 to 546.85 metres down hole. Moving 50 metres to the east and 100 metres north, hole VBE06-33 intersected 1.43 grams gold per tonne over 43 metres, 0.81 gram gold per tonne over 30.5 metres, 0.73 gram gold per tonne over 38 metres and 0.49 gram gold per tonne over 14 metres.

Hole ALE06-05 drilled to the south of the El Pozo Fault between La Alta East and Los Laches areas did not encounter any significant mineralization, suggesting that there is a gap south of the El Pozo Fault in this sector. However, drill hole ALE06-03 intersected mineralized structures north of the fault returning 2.33 grams gold per tonne over 9.45 metres and 11.85 grams gold per tonne over 0.95 metre.

Testing Los Laches structure at depth, hole ALE06-08 encountered 0.79 gram gold per tonne over 4.15 metres, 0.59 gram gold per tonne over 12.8 metres and 0.79 gram gold per tonne over 6.35 metres. Hole ALE06-10, which was collared 100 metres to the west, also intersected Los Laches structures returning values like 1.67 grams gold per tonne over 5.8 metres, 1.02 grams gold per tonne over 4 metres and 1.39 grams gold per tonne over 8.05 metres. In addition, two narrow intercepts containing 77.9 grams gold per tonne over 1 metre and 10.8 grams gold per tonne over 1.45 metres occurred within lower grade intercepts.

In the Veta de Barro East zone, hole VBE06-37 drilled on the northern limit intersected narrower intercepts such as 0.78 gram gold per tonne over 9.95 metres and 1.49 grams gold per tonne over 4.1 metres, whereas drill hole VBE06-36 drilled 50 metres to the west intersected several lower-grade structures including 0.78 gram gold per tonne over 15 metres and 1.22 grams gold per tonne over 4 metres.

The latest results include 5 underground drill holes collared in La Alta and Silencio areas of the deposit. Hole UAL06-16 returned 0.65 gram gold per tonne over 10 metres, 0.51 gram gold per tonne over 44.5 metres, 9.04 grams gold per tonne over 2.5 metres, 0.47 gram gold per tonne over 6.5 metres and 1.43 grams gold per tonne over 8 metres, while hole UAL06-18 intersected 0.97 gram gold per tonne over 26.8 metres, 0.83 gram gold per tonne over 15.1 metres and 0.61 gram gold per tonne over 10.8 metres. A third hole drilled in La Alta area returned 7.59 grams gold per tonne over 2.25 metres, 0.66 gram gold per tonne over 13 metres, 1.24 grams gold per tonne over 12.85 metres and 1.83 grams gold per tonne over 22.85 metres.

The results of two holes drilled underground in the Silencio area returned 0.7, 0.62, 0.41, 1.27, 0.74, 0.43, 0.69 and 0.59 gram gold per tonne over 8.85, 20.0, 13.0,38.0,4.0, 24.55, 12.1 and 44.6 metres, respectively. The second hole intersected 0.48, 0.44, 0.78, 1.24 and 0.85 gram gold per tonne over 6.0, 6.45, 48.5, 10.0 and 7.35 metres, respectively.

The latest drill results include:



---------------------------------------------------------------
Inter-
val (m Gold Silver
Hole Intercept From (m) To (m) (iii)) gm/t gm/t
---------------------------------------------------------------
ALE06-03 V40 FW 229.55 239.0 9.45 2.33 5.4
-----------------------------------------------------
V438FW 269.3 270.25 0.95 11.85 57.0
---------------------------------------------------------------
ALE06-06 V501HW 133.0 155.0 22.0 1.94 8.4
-----------------------------------------------------
V501FW 155.0 181.5 26.5 19.91 38.6
-----------------------------------------------------
V406 276.3 362.4 86.1 0.64 3.5
-----------------------------------------------------
V438 376.0 383.2 7.2 1.26 6.9
---------------------------------------------------------------
ALE06-07 V410 218.0 222.9 4.9 4.06 26.2
-----------------------------------------------------
V406 298.0 315.5 17.5 0.94 2.8
-----------------------------------------------------
V438HW 363.9 379.5 15.6 1.61 2.6
-----------------------------------------------------
V438FW 398.15 415.0 16.85 0.86 1.9
---------------------------------------------------------------
ALE06-08 NEW 215.85 220.0 4.15 0.79 5.9
-----------------------------------------------------
V1001 359.5 372.3 12.8 0.59 3.0
-----------------------------------------------------
NEW 378.0 384.35 6.35 0.79 4.3
---------------------------------------------------------------
ALE06-09 V418 240.0 246.0 6.0 1.09 4.3
-----------------------------------------------------
V410FW 308.0 341.0 33.0 1.15 4.0
-----------------------------------------------------
V438 371.0 377.3 6.3 3.37 13.9
---------------------------------------------------------------
ALE06-10 NEW 212.0 217.8 5.8 1.67 5.7
-----------------------------------------------------
NEW 226.0 230.0 4.0 1.02 3.0
-----------------------------------------------------
V438 379.95 388.0 8.05 1.39 3.8
-----------------------------------------------------
V439HW 464.0 465.0 1.0 77.9 118.0
-----------------------------------------------------
V439FW 470.55 472.0 1.45 10.8 111.0
---------------------------------------------------------------
QPO06-10 CLOUD 1 62.0 69.6 7.6 0.89 10.8
---------------------------------------------------------------
UAL06-16 V704 37.0 47.0 10.0 0.65 0.4
-----------------------------------------------------
V707-V708 53.5 98.0 44.5 0.51 4.2
-----------------------------------------------------
V610FW 98.0 100.5 2.5 9.04 52.7
-----------------------------------------------------
V610HW 100.5 107.0 6.5 0.47 1.2
-----------------------------------------------------
V414 137.5 145.5 8.0 1.43 6.9
---------------------------------------------------------------
UAL06-18 V705HW 17.2 44.0 26.8 0.97 4.7
-----------------------------------------------------
V705FW 53.6 68.7 15.1 0.83 10.5
-----------------------------------------------------
V615 87.5 98.3 10.8 0.61 4.5
---------------------------------------------------------------
UAL06-19 V705 33.55 35.8 2.25 7.59 97.9
-----------------------------------------------------
V615 65.0 78.0 13.0 0.66 3.2
-----------------------------------------------------
V616 84.0 96.85 12.85 1.24 5.7
-----------------------------------------------------
V339 150.0 172.85 22.85 1.83 9.7
---------------------------------------------------------------
USI06-20 V622 9.0 17.85 8.85 0.7 4.6
-----------------------------------------------------
V912 42.0 62.0 20.0 0.62 1.4
-----------------------------------------------------
V907 88.0 101.0 13.0 0.41 3.2
-----------------------------------------------------
V926-V908 101.0 139.0 38.0 1.27 7.1
-----------------------------------------------------
V909 147.0 151.0 4.0 0.74 4.7
-----------------------------------------------------
V920FW 259.0 283.55 24.55 0.43 1.7
-----------------------------------------------------
V916 340.5 352.6 12.1 0.69 4.4
-----------------------------------------------------
V937 358.0 402.6 44.6 0.59 5.8
---------------------------------------------------------------
USI06-22 V912 56.3 62.3 6.0 0.48 7.0
-----------------------------------------------------
V909 133.0 139.45 6.45 0.44 1.1
-----------------------------------------------------
V901 174.0 222.5 48.5 0.78 7.0
-----------------------------------------------------
V920 231.0 241.0 10.0 1.24 12.3
-----------------------------------------------------
NEW 284.6 291.95 7.35 0.85 3.2
---------------------------------------------------------------
VB06-06 V203 55.0 117.0 62.0 1.22 5.8
-----------------------------------------------------
V426FW 154.4 171.8 17.4 0.99 2.8
-----------------------------------------------------
V423-V417 258.35 299.0 40.65 0.56 3.3
-----------------------------------------------------
V422-V401 304.25 339.0 34.75 1.1 2.3
-----------------------------------------------------
V418 437.0 448.0 11.0 6.15 12.0
-----------------------------------------------------
V410HW 448.0 482.0 34.0 0.97 3.6
-----------------------------------------------------
V410FW 484.25 487.1 2.85 9.9 17.4
-----------------------------------------------------
V431 504.0 525.0 21.0 1.75 1.8
---------------------------------------------------------------
VBE06-33 CLOUD 1 41.0 84.0 43.0 1.43 20.2
-----------------------------------------------------
CLOUD 1 101.25 131.75 30.5 0.81 2.4
-----------------------------------------------------
CLOUD 1 142.0 180.0 38.0 0.73 2.1
-----------------------------------------------------
V223 197.0 211.0 14.0 0.49 1.8
---------------------------------------------------------------
VBE06-34 CLOUD 1 135.0 152.55 17.55 0.96 2.5
-----------------------------------------------------
CLOUD 1 305.1 316.1 11.0 0.8 3.2
---------------------------------------------------------------
VBE06-36 V224 65.0 80.0 15.0 0.78 2.1
-----------------------------------------------------
CLOUD 1 351.0 355.0 4.0 1.22 9.8
---------------------------------------------------------------
VBE06-37 V221 128.55 138.5 9.95 0.78 4.8
-----------------------------------------------------
NEW 154.2 158.3 4.1 1.49 15.9
---------------------------------------------------------------
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.


The diamond drilling activity was shut down around mid December and will resume after the 15th of January. The drilling contractor will use this month long break to do preventative maintenance and equipment overhauls. Greystar also uses this period to provide mandatory vacations to staff and workers in order to be able to work uninterruptedly in the field for over 11 months. At December 31, 2006, a total of 604 drill holes have been completed for a total of 200,862 metres.

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, 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 Statements

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, 2006, 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.

SOURCE: Greystar Resources Ltd.

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

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