Grayd explores La India (February 04, 2004)

A surface exploration program by Grayd Resources (GYD-V) is assessing several showings on the India high-sulphidation gold property in Sonora, Mexico.

La India covers 71 sq. km of ground covering the western edge of a large hydrothermal system. The system is characterized by advanced argillic and silica alteration, with three showings having returned upwards of 33 grams gold per tonne.

Described as a typical high-sulphidation target, La India is characterized by an argillically altered rhyodacite base overlain by a vuggy-silca zone and silicified top. The alteration pattern extends over an area some 1,000 metres in length and 600 metres in width.

Nine grab samples from the face and walls of three short adits driven into the intrusion averaged 0.77 to 6.87 grams gold, though six ran more than 3 grams. Results from another 55 samples of argillic alteration and small structures in silicified rock were anomalous in all but one case.

Although smaller in size, the Espanola showing has yielded higher grades than India. Results from a dozen samples ranged from 0.21 to 32.7 grams, with three samples of vuggy silica averaging 0.2 to 1.44 grams.

The Espanola showing is 700 meters long and 500 metres wide.

The Cieneguita showing, which is 800 meters long and 300 meters wide, is highlighted by a central hydrothermal breccia body. The breccia has been traced for 450 metres along its trend, and its width varies from 10 to 20 meters.

Twelve samples were taken from old adits some 300 meters apart, and two revealed visible gold (VG). One of the VG samples was characterized by vuggy silica and averaged 6.21 grams, whereas five other samples in which no visible gold was noted assayed greater than 2 grams.

Grayd can earn a 100% interest in property by paying US$555,000 over four years. The vendor retains a 1% net smelter return royalty, though half will be relinquished in in return for US$750,000, and will be paid US50 per recoverable ounce of gold that is outlined.

Situated 7 km from the property is the Mulatos gold deposit of Alamos Gold (AGI-V), where 33.7 million tonnes averaging 2.15 grams has been outlined. The estimate is based on a cutoff grade of 1 gram, and most of resource falls into the measured or indicated categories.