Greystar Reports-Eastern Expansion Yields 9.3 g/t Gold over 12 Metres
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2006) - Greystar
Resources Ltd. (TSX:GSL)(AIM:GSL) is pleased to report that favourable
results have prompted the dedication of seven diamond drill rigs to the
northeast sector of the Veta de Barro and El Pozo areas of its
wholly-owned, multi-million ounce Angostura gold-silver deposit in
northeastern Colombia.
"The consistent thicknesses and grade of mineralization in the eastward
extension of the Veta de Barro vein system continues to be particularly
attractive," states Greystar's Executive Vice-President, Frederick
Felder. "In fact based on the results received to date, this sector has
the potential to develop into a significant component of the very large
Angostura gold-silver system."
The latest assays from 12 holes include hole VBE06-01, which was
collared 100 metres west of a previously reported 250 metre eastern
step-out hole in the Veta de Barro area (VBE05-01, which returned 1.35
grams gold per tonne over 74 metres, Press Release February 15, 2006)
and intersected 11 metres grading 1.18 grams gold per tonne, 1.5 metres
grading 21.7 grams gold per tonne, 12 metres averaging 9.29 grams gold
per tonne and 25 metres averaging 1.02 grams gold per tonne.
Hole VBE06-02 tested the zone some 100 metres below hole VBE05-01 and
cut 7.65 metres grading 2.38 grams gold per tonne and 28.1 metres
running 2.87 grams gold per tonne.
At Quebrada Pozo, immediately north of the La Alta area, hole QP006-02
cut 10 metres grading 0.81 gram gold per tonne, 4.5 metres grading 1
gram gold per tonne and 6.35 metres running 3.42 grams gold per tonne.
Some 100 metres to the east, hole QP006-01 intersected a higher-grade
structure averaging 39.8 grams gold per tonne over 1.2 metres, plus 2.62
grams gold per tonne over 5.3 metres.
Infill drilling in the La Alta area continued to intersect significant
zones of mineralization with hole Al06-02 returning 16.8 metres running
1.04 grams gold per tonne, 12.6 metres running 1.04 grams gold per tonne
and 8 metres averaging 3.28 grams gold per tonne.
Underground drilling in the Silencio area yielded broader, lower-grade
intercepts with hole USI06-01 cutting 11.4 metres averaging 0.55 gram
gold per tonne, 32 metres grading 0.66 gram gold per tonne and 3.75
metres running 1.63 grams gold per tonne and hole USI06-03 encountering
8 metres grading 1.34 grams gold per tonne, 16 metres grading 0.64 gram
gold per tonne and 24.45 metres running 0.73 gram gold per tonne.
Drilling from the north drift of the La Alta area, intersected 45.95
metres of 0.78 gram gold per tonne and 13.6 metres running 1.34 grams
gold per tonne.
On the resource evaluation front, Greystar initiated a new program of
closer, 25 metre spaced horizontal drill holes from the north and south
drifts of the underground development. This program was proposed by
Strathcona Minerals Services Inc. ("Strathcona") as a detailed test of
selected areas of the deposit in order to more accurately evaluate the
resource model. Strathcona is assisting in an updated resource
evaluation that will form part of the Angostura scoping study (Press
Release, January 11, 2006). The first phase of this program will
comprise 5,840 metres in 28 holes. To advance this program more rapidly
two additional electric diamond drills were mobilized in late February
and the middle of March, respectively. Of the twelve drill rigs on the
property, five are currently allocated for this program.
The latest drill results include:
/T/
Fixed Font
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Interval Gold Silver
Hole Intercept From (m) To (m) (m(iii)) gm/t gm/t
---------------------------------------------------------------------
AL06-01 V6 30.5 37.8 7.3 0.78 1.7
---------------------------------------------------------------------
AL06-02 V1 290.8 307.6 16.8 1.04 7.6
----------------------------------------------------------
V3 358.0 370.6 12.6 1.04 3.2
----------------------------------------------------------
V4 416.0 424.0 8.0 3.28 3.2
---------------------------------------------------------------------
AL06-03 V5 127.0 134.0 7.0 1.51 8.1
---------------------------------------------------------------------
SI06-01 V459 201.0 205.25 4.25 1.36 3.1
---------------------------------------------------------------------
SI06-03 V311 31.0 35.5 4.5 1.07 72.5
----------------------------------------------------------
V353 94.65 99.5 4.85 2.24 9.0
---------------------------------------------------------------------
QPO06-01 V562 187.8 189 1.2 39.8 7.1
----------------------------------------------------------
V2 322.2 327.5 5.3 2.62 5.6
---------------------------------------------------------------------
QPO06-02 V561 39.0 49.0 10.0 0.81 2.0
----------------------------------------------------------
V306 321.5 326.0 4.5 1.0 3.6
----------------------------------------------------------
V4 336.65 343.0 6.35 3.42 18.2
---------------------------------------------------------------------
UAL06-02 V29-V364-V51 191.55 237.5 45.95 0.78 0.7
----------------------------------------------------------
V12 343.0 356.6 13.6 1.34 9.7
---------------------------------------------------------------------
USI06-01 V16 146.6 158.0 11.4 0.55 2.2
----------------------------------------------------------
V29-V27 192.0 224.0 32.0 0.66 1.7
----------------------------------------------------------
V24 289.5 293.25 3.75 1.63 7.7
---------------------------------------------------------------------
USI06-03 V12 13.0 21.0 8.0 1.34 1.9
----------------------------------------------------------
V52 41.0 57.0 16.0 0.64 2.6
----------------------------------------------------------
V364-V331 92.0 116.45 24.45 0.73 1.7
---------------------------------------------------------------------
VBE06-01 V524 125.0 136.0 11.0 1.18 3.6
----------------------------------------------------------
V551 256.0 257.5 1.5 21.7 8.7
----------------------------------------------------------
V552 315.0 327.0 12.0 9.29 53.9
----------------------------------------------------------
V553 341.0 366.0 25.0 1.02 6.5
---------------------------------------------------------------------
VBE06-02 V551 403.35 411.0 7.65 2.38 4.6
----------------------------------------------------------
V552 418.4 446.5 28.1 2.87 3.6
---------------------------------------------------------------------
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.
/T/
Based on 112,797 metres of drilling, the August 2005 resource
calculation for the Angostura deposit came in at 5.83 million ounces of
gold and 24.6 million ounces of silver within an indicated resource of
148.14 million tonnes grading 1.22 grams gold per tonne and 5.17 grams
silver per tonne, plus another 4.47 million ounces of gold and 21.5
million ounces of silver within an inferred resource of 123.3 million
tonnes grading 1.13 grams gold per tonne and 5.42 grams silver per tonne
using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for
sulphide (Press Release August 16, 2005). 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, 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 in quarters (HQ) or halves (NQ), with one quarter or one
half of the core 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 reassays 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
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.
All dollar amounts are in Canadian dollars, unless otherwise stated.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Greystar Resources Ltd. - Canada
Mr. Dave Rovig
President
(406) 245-9520
www.greystarresources.com
or
Parkgreen Communications - London
Cathy Malins
+44 (0) 20 7493 3713
Cathy.malins@parkgreenmedia.com
or
Parkgreen Communications - London
Annabel Leather
+44 (0) 20 7493 3713
Annabel.leather@parkgreenmedia.com
No Stock Exchange has reviewed or accepts responsibility for the
adequacy or accuracy of this news release. |
