Grayd explores La India (February 16, 2004)

A surface program by Grayd Resources (GYD-V) is assessing the mineral potential of a high-sulphidation epithermal gold property in Sonora state, Mexico.

The property, known as La India, consists of three claim groups covering a combined 71 sq. km on the western edge of a large hydrothermal system. The system is characterized by advanced argillic and silica alteration, and three showings have 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-silica zone and silicified top. The alteration pattern extends over an area 1,000 metres long by 600 metres wide.

Nine grab samples from the face and walls of three short adits driven into the intrusion averaged 0.77-6.87 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 0.2-1.44 grams.

The Espanola showing is 700 metres long by 500 metres wide.

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

Two of 12 samples taken from old adits some 300 metres apart revealed visible gold (VG). One of the VG samples was characterized by vuggy silica and averaged 6.21 grams, whereas five samples in which no visible gold was noted assayed greater than 2 grams.

The property is in a geological setting similar to that of the Mulatos gold deposit of Alamos Gold (AGI-V), and both deposits have similar alteration and mineralization patterns. Mulatos is about 15 km from the India showing and hosts 33.7 million tonnes grading 2.15 grams, based on a cutoff grade of 1 gram.

Grayd can earn a 100% interest in two of the claim groups (La India and La India 1) by paying US$555,000 over four years. The vendor retains a 1% net smelter return royalty, though half will be relinquished in return for US$750,000, and will be paid US50 per recoverable ounce of gold outlined in a bankable feasibility study.

To earn a full interest in the Triple A claims, Grayd must pay US$816,000 over five years, though most can be paid in one final lump sum of US$500,000. The vendor retains a 2% NSR but will relinquish half in return for US$1.5 million.