Greystar cuts high grade

Vancouver — Drilling by Greystar Resources (GSL-T) at the Angostura property in northeastern Colombia has intersected more high-grade gold.

The program was aimed at confirming continuity of vein-hosted mineralization in the core Diamante zone, while testing the Alta and Veta de Barro zones.

At Diamante, hole 9 intersected 29 metres (from a down-hole depth of 141 metres) grading 4.4 grams gold per tonne in veins 314 and 52. Core drilling also cut other mineralized vein structures; these averaged 1-7 grams gold over widths of 12-48 metres.

Hole 7, sunk at the Alta zone, intersected a new vein averaging 6.5 grams gold over 11.5 metres. A separate hangingwall vein delivered a 1.5-metre section of 28.5 grams gold.

Four holes drilled at the Veta de Barro zone confirm that it is the northern extension of the Main deposit. Several mineralized-vein intercepts ranging from 1.5 to 20 metres averaged up to 39 grams gold.

The main Angostura deposit hosts an indicated resource of 87.3 million tonnes grading 1.2 grams gold and 5.2 grams silver per tonne (equivalent to 3.4 million oz. gold and 14.5 million oz. silver). There is also an inferred resource of 111.5 million tonnes grading 1.3 grams gold and 4.7 grams silver (4.5 million oz. gold and 17 million oz. silver).

The gold and silver mineralization is hosted in multiple vein-like structures, breccias and shoots, as well as fault zones, over an area exceeding 1 sq. km. Greystar has spent US$20 million exploring the project since 1995.

The drill results induced investors to drive up the share price 17% to $5.80 on a volume of 400,000 shares. With 33.1 million shares outstanding, Greystar has a market capitalization of $192 million.