Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

November 02, 2005 08:30 ET

US$1 Million Exploration Program Underway on Grayd's La India Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2005) - Grayd Resource Corporation (TSX VENTURE:GYD) reports that exploration by Grayd and Newmont Mining Corporation (NYSE:NEM) is underway on the La India high sulphidation epithermal gold project located in Sonora State, Mexico.

The US$1 million exploration program will be funded wholly by Newmont as part of its earn-in agreement on La India. The program will be ongoing through most of the first quarter of 2006, and it is anticipated that the first drill holes will commence between the end of November and early December 2005. Grayd is project operator.

Exploration will initially focus on the 14 targets with the potential to host high-sulphidation epithermal gold deposits identified on La India through the evaluation of geological, geochemical and geophysical data collected by Newmont in May and June 2005, and collected previously by Grayd. Work underway includes detailed geological mapping, sampling, and ground geophysics (IP - Resistivity) over all of the targets to better plan drill holes. Access road construction is also ongoing. The work plan includes a 3,000 m drill program to test priority targets.

Under the terms of the La India agreement, Newmont must spend US$7 million on exploration and development over a four-year period to earn a 51% interest in the property. This includes a firm commitment to spend US$1million in year one of the agreement. Newmont can earn an additional 19% interest (to a total of 70%) by completing a bankable feasibility study. Grayd will act as operator for the first two years of the earn-in.

About Grayd Resource Corporation

Grayd Resource Corporation is a natural resource company engaged in the acquisition, exploration and development of mineral resource properties. It has gold projects in Mexico, a copper-gold porphyry project in British Columbia and a gold enriched base metal project in Alaska. For further information on the La India property, please visit www.grayd.com.


The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Grayd Resource Corporation
    Marc A. Prefontaine, M.Sc., P.Geo.
    President and CEO
    (604) 681-7446
    (604) 684-9877 (FAX)
    www.grayd.com
    or
    Freeform Communications Inc.
    (604) 628-5188 ext. 101