Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

April 30, 2008 02:00 ET

Greystar Resources Ltd.: Silencio Test Shows 17% Higher Gold Grades

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2008) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that two significant tests comprising 95 holes and totaling 13,752 metres indicate that 25 metre hole spacing is optimal for the determination of the gold grade and contained ounces in the higher-grade shoots at its wholly-owned, multi-million ounce Angostura deposit in northeastern Colombia.

"Going from 50 metre spacing to 25 metre spacing in the Silencio test panel within the deposit, we see a 17.5% increase in gold grade and a 16.6% increase in contained ounces, while overall tonnage increased slightly by 0.8%," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "The almost identical results between the 12.5 and 25 metre spaced programs suggest that there appears to be no significant benefit to drilling at a tighter separation than 25 metres."

The previously reported increased drill density on 25 metre centers in a horizontal test panel within the core of the Perezosa tunnel in 2006 that was recently analyzed using the most recent resource model resulted in an 8.4% jump in overall tonnage, a 2.6% increase in gold grades and 11.1% jump in contained ounces of gold in the measured and indicated resource categories. The closer spaced drilling had a more modest impact on the silver grade with only a 5% increase.

The important conclusion from these two test programs is that the higher-grade structures require drilling at 25 metres, as opposed to the 50 metre centers that have been used to define the deposit to date. This is the objective of the on going 40,000 metre drill program, where the latest results continue to define the higher-grade gold zones with hole ALE08-03 returning 12 metres grading 19.26 grams gold and 103.5 grams silver per tonne approximately 80 metres below previously reported drill hole ALE06-15 (March 28, 2007) that cut 7.32 grams gold and 9.26 grams silver per tonne in the La Alta East area, and hole DM08-02 yielding 10.28 grams gold per tonne over 15 metres some 25 metres east of previously reported drill hole DM05-01 (February 22, 2005) that returned 12.37 grams gold per tonne over 14.3 metres in the Diamante area.

In the Veta de Barro area hole VB08-01, which has collared 28 metres southeast of previously reported drill hole VB04-02 (November 16, 2004) that returned 4.86 grams gold and 8.9 grams silver per tonne over 9 metres, yielded 20.54 grams gold and 167.3 grams silver per tonne over 15 metres.

The latest drill results include:



----------------------------------------------------------------------
From To Interval Gold Silver
Hole Intercept (m) (m) (m(iii)) (gm/t) (gm/t)
----------------------------------------------------------------------
AL08-04 V605HW 51.15 77.1 25.95 0.67 8.3
------------------------------------------------------------
V605FW 92.95 118.6 25.65 0.6 5.1
------------------------------------------------------------
V406 123.85 162.7 38.85 0.6 7.5
----------------------------------------------------------------------
AL08-06 V427-V428 48.0 93.0 45.0 0.61 3.7
------------------------------------------------------------
V417FW 180.0 207.4 27.4 1.22 1.9
------------------------------------------------------------
V421 251.75 264.95 13.2 1.31 1.7
----------------------------------------------------------------------
AL08-08 V402 66.5 81.75 15.25 1.66 0.6
------------------------------------------------------------
V403 96.0 134.35 38.35 0.57 4.2
------------------------------------------------------------
V605HW 164.0 187.5 23.5 0.84 6.3
------------------------------------------------------------
V605FW 199.5 213.0 13.5 0.88 5.1
----------------------------------------------------------------------
ALE08-01 BODY3 185.1 187.6 2.5 6.78 87.4
------------------------------------------------------------
BODY3 307.7 308.75 1.05 5.85 185.0
----------------------------------------------------------------------
ALE08-02 NEW 300.0 301.35 1.35 7.79 28.5
----------------------------------------------------------------------
ALE08-03 V426HW 0.0 19.25 19.25 0.87 1.7
------------------------------------------------------------
V426FW 26.0 40.3 14.3 0.99 1.1
------------------------------------------------------------
V402 228.35 244.4 16.05 1.25 3.0
------------------------------------------------------------
V403HW 269.0 281.0 12.0 19.26 103.5
------------------------------------------------------------
V605HW 319.0 329.0 10.0 1.11 4.3
------------------------------------------------------------
V605HW 330.3 340.4 10.1 1.89 3.6
----------------------------------------------------------------------
AN08-01 26.0 28.0 2.0 0.51 4.1
------------------------------------------------------------
223.3 225.7 2.4 28.6 14.7
----------------------------------------------------------------------
AN08-02 25.0 33.0 8.0 0.95 15.9
----------------------------------------------------------------------
DM08-02 V615 51.0 65.0 14.0 0.93 8.2
------------------------------------------------------------
V606HW 148.0 163.0 15.0 10.28 2.4
------------------------------------------------------------
V606FW 163.0 188.0 25.0 1.34 2.6
------------------------------------------------------------
V607FW 197.2 213.7 16.5 0.89 1.2
----------------------------------------------------------------------
LL08-06 BODY3 194.7 212.0 17.3 1.68 27.6
------------------------------------------------------------
BODY3 217.0 231.0 14.0 1.29 22.1
------------------------------------------------------------
BODY3 284.4 299.05 14.65 0.9 6.8
------------------------------------------------------------
BODY3 355.0 365.5 10.5 2.43 36.2
----------------------------------------------------------------------
LL08-07 BODY3 111.0 129.0 18.0 0.64 26.5
------------------------------------------------------------
BODY3 131.0 149.0 18.0 0.7 10.8
----------------------------------------------------------------------
LL08-08 BODY3 84.8 138.0 53.2 1.02 13.2
------------------------------------------------------------
BODY3 138.0 161.5 23.5 0.87 55.9
----------------------------------------------------------------------
LL08-09 BODY3 166.0 174.8 8.8 1.39 4.7
----------------------------------------------------------------------
NA08-02 BODY3 177.0 193.0 16.0 0.78 9.1
----------------------------------------------------------------------
NA08-04 BODY3 150.0 167.0 17.0 0.66 14.7
------------------------------------------------------------
BODY3 183.0 195.55 12.55 0.6 5.7
----------------------------------------------------------------------
NA08-05 V902 303.5 305.6 2.1 0.76 5.9
----------------------------------------------------------------------
NA08-07 V702FW 46.1 73.1 27.0 0.87 1.2
------------------------------------------------------------
V622HW 335.0 355.9 20.9 0.83 6.7
----------------------------------------------------------------------
NA08-08 V910 0.0 24.6 24.6 1.5 3.6
------------------------------------------------------------
V901HW 54.45 87.2 32.75 1.23 10.9
------------------------------------------------------------
V930 238.45 253.0 14.55 1.16 7.4
----------------------------------------------------------------------
VB08-01 BODY2 12.0 27.0 15.0 20.54 167.3
------------------------------------------------------------
within which 13.0 14.0 1.0 141.0 892.0
------------------------------------------------------------
BODY2 43.0 61.0 18.0 1.44 28.5
------------------------------------------------------------
BODY2 64.0 87.0 23.0 1.23 2.5
----------------------------------------------------------------------
VB08-02 BODY2 17.0 34.9 17.9 1.03 8.0
------------------------------------------------------------
BODY2 72.75 83.0 10.25 1.12 7.2
----------------------------------------------------------------------

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.


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 million 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: 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, 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 into 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.

Contact Information

  • Greystar Resources Ltd. - Contact in Canada
    Mr. David Rovig
    President
    (406) 245-9520
    or
    Greystar Resources Ltd. - Contact in Canada
    Mr. Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Website: www.greystarresources.com
    or
    Parkgreen Communications - Contact in London
    Lisa Kavanagh
    +44 (0) 20 747851 7480
    Email: lisa.kavanagh@parkgreenmedia.com
    or
    NCB Stockbrokers Limited - Contact in London
    Christopher Caldwell
    +44 (0) 20 7071 5200
    Email: christopher.caldwell@ncbgroup.co.uk