Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

August 16, 2005 07:30 ET

Grizzly Reports Additional High Grade Gold and Silver Assays from the Peak Property, British Columbia

EDMONTON, ALBERTA--(CCNMatthews - Aug. 16, 2005) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") is pleased to announce the receipt of additional high grade gold and silver assays from the Phase 1 field exploration program recently completed on the Peak Property ("the Property") located 65 km northeast of the town of Smithers, BC. The Property is road accessible from Fort Babine and hosts the Ute and Rio polymetallic silver-gold-copper-lead-zinc vein systems hosted within dacitic to felsic volcanic rocks. The vein systems are shear zone hosted, subparallel and consist of tetrahedrite with argentiferous galena, chalcopyrite, sphalerite and disseminated to massive pyrite.

A total of 165 surface rock grab and rock chip samples were collected from the Property during the summer 2005 field program. Final assay results have been received for the last batch of 108 surface rock samples. A number of high grade gold, silver and base metal values have been obtained from both vein systems. Mapping indicates that the two vein systems trend northeast and are subparallel about 120 m apart with the northernmost Ute vein system existing near to a transition from massive flow dominated dacites and rhyolites to a domain of volcaniclastic and pyroclastic dominated rocks.

Ute Vein Trend

- A total of 24 out of 58 rock grab and chip samples collected from the Ute vein trend over a strike length of 260 m yielded between 100 grams per tonne (g/t) silver (2.92 ounces per ton (oz/t)) and 7,250 g/t silver (211.5 oz/t).

- A total of 13 of the 24 rock grab and chip samples from the Ute trend assay between 915 g/t (26.7 oz/t) and 7,250 g/t silver (211.5 oz/t). Over the same 260 m trend, a total of 5 samples yield between 1.47 g/t (0.04 oz/t) and 12.55 g/t gold (0.37 oz/t), 16 samples assay between 1.05 % and 13.0 % copper, and 20 samples assay between 1.24 % and greater than 30 % lead.

- A number of the highly anomalous samples also yield greater than the upper limit of 1 % arsenic and antimony along with highly anomalous concentrations of manganese and bismuth.

- One rock grab sample collected about 135 m northwest of and across strike from the Ute vein system yielded 65.2 g/t gold (1.90 oz/t), 480 g/t silver (14.0 oz/t), 8.25 % copper along with percent level arsenic and manganese and may indicate the potential for other sub-parallel mineralization, particularly at the contacts between the volcanics and sedimentary interbeds.

Rio Vein System

- The Rio vein system, strikes subparallel to Ute vein system about 120 m to the southeast, is intermittently exposed over a strike length of about 60 m.

- The Rio vein system appears to be a more gold and copper rich system with a total of 14 of 25 rock grab samples over the 60 m trend yielding between 1.10 g/t gold (0.03 oz/t) and 14.15 g/t gold (0.41 oz/t), along with 12 samples yielding between 1.97 % and 8.77 % copper.

- Only one sample yielded greater than 1,000 g/t silver ( greater than 29.2 oz/t) and greater than 1 % lead.

- Similar to the Ute vein system, the Rio vein system also yields highly anomalous concentrations of manganese, arsenic, bismuth and antimony.

All geochemical analyses were conducted using a combination of fire assay in conjunction with AA or gravimetric finish and multi-element ICP techniques at ALS Chemex in Vancouver.

The Peak Property is located near the southern edge of the Bowser Basin within Stikine Terrane and along the northern flank of the Skeena Arch. The Ute and Rio vein systems are hosted in what was originally mapped as intermediate to felsic volcanics and sediments of Cretaceous Kasalka Group. However, recent paleontological work on spatially associated argillites and marls indicates that the volcanic package is most likely Lower to Middle Jurassic in age. The age and volcanic stratigraphy underlying the Property bear strong similarities to the age and stratigraphy of rocks that are known to host the Eskay Creek deposit northeast of Stewart.

Based upon the results of the Phase 1 sampling and mapping program at the Peak Property, follow-up exploration programs are being planned and budgeted including a possible airborne magnetic-electromagnetic survey in order to generate drill targets for 2006. Land use permits for such drilling are currently being applied for.

Other Exploration in BC and Alberta

A property visit was made to the Goat Property in the Stewart region during the middle of July. A number of rock grab samples were collected from the Goat Property claims. These samples have been sent for geochemical analyses. Results will be released as they become available. A field visit is also being planned for Grizzly's Silver Bear Property, which exists adjacent to Orphan Boy Resources Inc.'s Willa Property in the Slocan area, which is currently the focus of a mining feasibility study.

A number of airborne geophysical surveys are being planned for Grizzly's Alberta diamond properties, in particular the Buffalo Head Hills properties this fall. Ashton Mining of Canada Inc. has recently announced that they will be drill testing a minimum of three large electromagnetic-gravity targets this summer on their Buffalo Head Hills properties where they have discovered a total of 38 kimberlites, including 26 that have yielded diamonds.

All 2005 field programs are being conducted under the supervision of Mike Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly Diamonds Ltd. is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds diamond properties in the Buffalo Head Hills, Birch Mountains, and Calling Lake areas of Alberta totaling approximately 3,945,000 acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia Grizzly has four precious metal properties totaling over 23,000 acres.

On behalf of the Board
Grizzly Diamonds Ltd.
/s/ "Brian Testo"
Brian Testo

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Grizzly Diamonds Ltd.
    Brian Testo
    Grizzly Diamonds Ltd.
    Suite 220, 9797 45th Avenue
    Edmonton, Alberta, Canada, T6E 5V8
    (780) 693-2365
    (780) 433-1336 (FAX)