Grayd and Newmont Sign Letter Agreement to Option Grayd's La India Gold Project in Mexico
12:47 EST Wednesday, March 30, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Grayd Resource Corporation (TSX VENTURE:GYD) and Newmont Mining Corporation (NYSE:NEM), through their respective Mexican subsidiaries, have signed a letter agreement, subject to a due-diligence period, whereby Newmont can earn an interest in Grayd's 100% owned La India high sulphidation epithermal gold project located in the Mulatos belt of Sonora State, Mexico. Marc Prefontaine, President of Grayd said: "We are very excited about having Newmont as a partner. Their expertise in high-sulphidation epithermal deposits such as their Yanacocha Deposit in Peru will be a great benefit to the project. Exploration activity in the Mulatos belt is heating up: Alamos Gold will be in production in a few months, and have recently made a new discovery within 1200 m of Grayd's Property. Additionally next month, Dasher Exploration and Chesapeake Gold have announced that drilling will commence on their Juliana gold project located just adjacent to Grayd."
Under the terms of the agreement, Newmont can earn a 51% interest by spending US $7 million on exploration and development over a four-year period with a minimum US $1 million firm commitment in year one (US $750,000 has to be spent by December 31, 2005). 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. The agreement is subject to a due-diligence period whereby Newmont, at its sole expense, will complete an airborne geophysical survey over the property. This program is scheduled to commence on April 15, 2005. After completing the airborne survey Newmont will have 45 days or until June 10, 2005, whichever comes first, to elect whether or not to proceed with the earn-in agreement. If Newmont elects not to proceed with the earn-in, it will supply all the geophysical information and any other geological information collected to Grayd.
With a land package totaling approximately 75 square kilometres, Grayd is the second largest landholder in the Mulatos District after Alamos Gold, which is currently developing the 3 million ounce Mulatos gold deposit located 6 km from the La India project boundary. The La India property covers a 10 km long by 3.5 km wide northwest trending belt of highly altered volcanic rocks with associated high sulphidation gold mineralization. Thus far, seven areas with gold mineralization have been identified.
For further information on the La India property, please visit www.grayd.com. Grayd Resource Corporation is a natural resource company engaged in the acquisition, exploration and development of mineral resource properties. It has a gold project in Mexico, a gold enriched base metal project in Alaska and a copper-gold project in British Columbia.
FOR FURTHER INFORMATION PLEASE CONTACT:
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.
(778) 371-9100 ext. 1220
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