Greystar Resources Provides Update On Forthcoming Drilling Program at its 5 Million Ounce Gold Deposit in Colombia
VANCOUVER, BRITISH COLUMBIA--Greystar Resources Ltd. (GSL: TSX) is
pleased to provide an update on its Angostura Gold Project in
Colombia and latest corporate developments.
Upcoming Drilling Program
Greystar's upcoming drilling program at its Angostura Gold Project
in Colombia will consist of 20,000 meters of drilling, 1,200
meters of underground development and metallurgical sampling. The
program will include surface infill drilling and underground
drifting and drilling. The objective is to further enhance the
presently known resources and includes testing of additional
high-grade structures within the existing veins. The veins range
in width from 2 to 50 meters and the mineralization is known to
extend over 1,000 meters vertically. Structures have generally
been tested to depths of less than 300 meters and indications are
that they continue at depth. Management believes this work will
further reveal additional resources both in existing veins and new
untested high grade shoots within these veins resulting in
increased grade and contained ounces.
Completion of the program is estimated at 10 to 12 months and will
lead to a scoping document. The program will commence once certain
safety and security measures are in place. The work will be
conducted using at least four drill rigs including two owned by
Greystar. The company is receiving bids from various Colombian and
South American based drilling companies and it will finalize its
decision shortly.
Safety and Security Issues
Following the investiture of Colombian President Uribe in August,
a new agenda was implemented to aggressively address security
issues. The Colombian Government has announced plans that call for
three fully manned installations to be set up in the Departments
of Santander and Norte de Santander, two of which will be in
proximity to Greystar's project. Through these actions, the
government has demonstrated its commitment to the protection of
the region.
Greystar is mindful of safety and security issues in Colombia.
However, it recognizes that corporations successfully carry on
business in Colombia and reap great rewards. The Company supports
the directives set forth by the Colombian Government to reduce
safety and security risks and intends to fully abide by its
directives.
Corporate Developments
Greystar recently retained the services of Mr. Ed Baer; a Toronto
based Senior Investor Relations Specialist, to assist the Company
in its ongoing corporate communications and investor relations
matters. Mr. Baer has over twelve years of Senior Corporate
Communications experience, including six years of mining related
experience, having previously held the title of Vice President,
Investor Relations at TVX Gold Inc.
Over the course of the last eighteen months Greystar strengthened
its locally based and fully functional operational facility in
Bucaramanga to support the drilling program and diverse corporate
endevours. Management has also been active in various community
projects in and around the California region as well as regional
environmental planning studies. Greystar was an active participant
in the recently enacted Colombian Mining Law.
In Greystar's effort to continue to facilitate communication with
stakeholders, the Company has revised its web site to contain more
detailed information and ease of navigation. The revised site can
be found at www.greystarresources.com
Debt Free
Greystar Resources recently completed a $5 million financing. A
significant portion of these proceeds will be used for the
drilling campaign. The Company can realize a further $5 million in
proceeds if the outstanding warrants are exercised in mid and late
2003.
For the second quarter ended June 30, 2002, Greystar reported a
loss of $307,850 (Q2/FY2001 net loss was $228,291) or $0.02 per
share. The loss for the six month period was $523,508 or $0.05
per share compared to a net loss of $494,724 or $0.05 per share
for the same period in 2001. The loss for the quarter includes
$174,760 in exploration expenditures or $272,510 for the six-month
period, reflecting slightly less activity than the same period in
2001 with exploration expenditures of $311,393. The Company
attributes the rise in administrative expenses to costs incurred
in completing the private placement financing. The financing
completed in the second quarter strengthened the balance sheet and
provided the Company with working capital of approximately $4.3
million at August 31.
Angostura Gold Project, Colombia
The Angostura Project is situated in northeastern Colombia and is
easily accessed by road from the regional centre of Bucaramanga.
The Company's land holdings are100% owned and consist of
exploration licenses and exploitation permits covering
approximately 6,630 hectares. Greystar build its land position
over a period of 7 years. The Company completed payments for the
last of several property rights in July 2002.
Greystar commenced work on the Angostura property in 1995, with an
early stage exploration program followed by a rigorous evaluation
of the project over a five-year period, which included over 52,000
meters (181 holes) of core drilling. Management believes that
based on earlier studies the project has the potential to be a
lower quartile cash cost producer.
In 1999, a new resource study prepared by Kinross Technical
Services concluded that the geologic resource at the Angostura
Project was 96 million tonnes at a grade of 1.6 grams gold per
tonne or 4.9 million ounces of gold. The study was reviewed and
vetted by Strathcona Mineral Services Limited, and is available
for review at www.sedar.com, company name: Greystar Resources
Ltd., date of filing: May 24, 2002.
During 2001, ongoing analysis conducted by Greystar revealed that
approximately 40% of all the gold in veins discovered to date is
contained within the high-grade zones of the deposit. These
high-grade zones correspond to steeply plunging shoots that
developed along the loci of intersections of veins with other
veins or with faults, and such shoots are developed over great
vertical extent. To properly define these zones, management has
undertaken to explore these high grades structures through a
further more comprehensive definition-drilling program.
Forward Looking Statements: 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.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Greystar Resources Ltd.
Ed Baer
Investor Relations
(416) 783-0503
or
Greystar Resources Ltd.
Dave Rovig
President
(406) 245-9520
Email: info@greystar.com
Website: www.greystarresources.com
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