Grayd Resource drills Dry Creek deposit

At the Dry Creek massive sulphide property, 55 miles southeast of Fairbanks, Alaska, Grayd Resource (GYD-V) is busy with a $1.5-Million program of exploration.

The company is targeting the Red Mountain zone, one of two massive sulphide zones occurring on opposite limbs of a major, east-west-Trending synclinal fold structure. Previous drilling by Phelps Dodge focused on the WTF zone, which is estimated to contain 1.8 million tons grading 7.05% zinc and 3.44% lead, plus 0.026 oz. gold and 9.96 oz. silver.

The Red Mountain zone is 2 miles southwest of WTF.

Grayd began the 1997 program by stepping out 165 ft. west of a 1976 drill hole, which intersected 38 ft. of massive sulphides averaging 5.3% zinc, 2.2% lead and 0.3% copper, plus 0.04 oz. gold and 2.2 oz. silver per ton.

Hole 1 pulled a 37-ft. interval of massive and semi-Massive sulphides averaging 7.6% zinc, 3.18% lead and 0.26% copper, plus 0.029 oz. gold and 3.36 oz. silver from a drilled depth of 135 to 172 ft.

The second hole was steepened and intersected 57 ft. of disseminated to massive sulphides downdip of the first hole. At a depth of 222 to 226 ft, a 4-ft. interval averaged 8.14% zinc, 0.56% lead and 0.1% copper, plus 0.07 oz.

silver.

Holes 3 and 4 were collared approximately 65 ft. west the 1976 drill hole.

Hole 3 was drilled at a minus 45 angle and intersected several intervals of mineralization between a depth of 135 and 187 ft., including: 5.5 ft. grading 20.01% zinc, 8.52% lead and 0.52% copper, plus 0.043 oz. gold and 7.76 oz.

silver; and 4.5 ft. grading 11.14% zinc, 4.56% lead and 0.75% copper, plus 0.02 oz. gold and 6.36 oz. silver.

Hole 4 was steepened and intersected 42 ft. of massive sulphides, including a true width of 10 ft. averaging 25.9% zinc and 11.7% lead, plus 0.1 oz. gold and 10.1 oz. silver.

Drilling is continuing on the Red Mountain zone. Grayd holds an option to acquire a 100% interest in the Dry Creek property.

The company has 4.2 million shares outstanding, or 9.3 million fully diluted.