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Hello esalad,

It really depends on how good their recent find is. One can't really figure this out by technicals anymore. We have a superspike. This is the news they released yesterday.


Grayd and Newmont Intersect 85.3 m Grading 2.6 g/t Au; New Gold Zone Discovered at La India Project in Mexico
Monday January 9, 8:30 am ET


VANCOUVER, BRITISH COLUMBIA
--(CCNMatthews - Jan. 9, 2006) - Grayd Resource Corporation (TSX VENTURE:GYD - News) reports the discovery of a new zone of gold mineralization at the La India Project, located in Sonora State, Mexico. RC05-14, the third Reverse Circulation (RC) hole drilled in December 2005, intersected 85.3 m grading 2.6 g/t Au. The upper portion of the intersection graded 7.2 g/t Au over 9.1 m. Recent surface mapping and positive chip sampling results indicate good exploration potential for several hundreds of metres around the drill hole.
RC05-14 was drilled in the Viruela-La Cruz area at an azimuth of 270 degrees and a dip of -50. There is no outcrop in the area of the drill intersection, and the true width is not known. Massive to vuggy silica and associated alunite and dickite indicate that the intersection is within a high sulphidation epithermal-style system. Gold values within the intersection (from 102.1 to 187.4 metres) range from 0.15 to 10.75 g/t. Silver averaged 15.4 g/t over the 85.3 m intersection. The vertical distance from surface to the start of the intersection is about 60 m. The upper extent of mineralization is likely to be shallower and may outcrop. Almost all of the rock intersected in the hole was intensely altered, and a lower intersection of silica alteration averaged 0.6 g/t Au over 18.3 m. A location map and drill hole section are attached and have also has been posted on the Grayd website.

A RC hole drilled from the same location as RC05-14 in 1992 ended in the mineral zone with a reported 5.3 m grading 3.95 g/t Au. In addition, a 1995 diamond drill hole collared approximately 45 m to the northeast, which also ended in mineralization, intersected 2.24 g/t Au over the last 27.5 m of the hole, suggesting a northeast-southwest strike. There are no holes that would have tested the strike extension of a zone trending SW from the new intersection.

Recent mapping has outlined zones of silicification, including vuggy silica, in areas south of RC05-14. Thirty-nine of 123 surface rock samples collected within an area approximately 740 m across in an east-west direction and up to 700 m south of the drill hole assayed greater than 1.0 g/t Au and 9 assayed greater than 3.0 g/t Au (with the highest being 9.8 g/t Au). Samples include 1 to 4 m long chip and grab samples. A map with drill hole and rock sample locations has been posted on the Grayd website.

The other two RC holes completed in December 2005 were drilled in the Puertos area located 2.4 km southeast of Viruela-La Cruz. RC05-12 intersected massive silica and advanced argillic alteration from 0 to 56.4 m which assayed between 0.01 and 0.11 g/t Au and silica-clay-pyrite alteration from 134.1 to 184.4 m which assayed between 0.02 and 0.07 g/t Au. RC05-13 entered a zone of silica-clay alteration at 123.4 m which assayed between 0.02 and 0.32 g/t Au to 137.8 m where the hole was lost due to broken ground and swelling clays. The drill results confirm that higher-temperature portions of a high-sulphidation epithermal system occur in the Puertos area, thus indicating potential for a gold deposit. Further work, including re-drilling RC05-13, is planned.

Field work at La India will resume on January 10, 2006 with drilling expected to start at the end of the month. The area around RC05-14 will be a priority, but there are a number of other targets which will be evaluated within the 10 km strike length of prospective geology on the property.

With a 75 km2 land position, La India is a district-scale high sulphidation epithermal prospect with multiple exploration targets. The property is underlain by the same geology, alteration, and mineralization style that occurs at Alamos Gold's Mulatos high sulphidation open pit gold mine which is located 6 km from the La India property boundary (approximately 15 km from Viruela-La Cruz). Alamos Gold reports a measured and indicated resource of 62.3 million tonnes grading 1.51 g/t Au using a 0.6 g/t cut off (3.02 million ounces) on their website.

Exploration at La India is being funded by Newmont Mining Corporation as part of Newmont's earn-in commitment on the property. Under the terms of the La India agreement, Newmont must spend US $7 million on exploration and development over a four-year period to earn a 51% interest in the property. Newmont can earn an additional 19% interest (to a total of 70%) by completing a bankable feasibility study. Grayd is the operator for the first two years of the earn-in.


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Len- Inter-
UTM Coordinate gth sections Au
Hole Target East North Azim. Dip M From To Width g/t
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RC05-12 Puertos 709287 3174945 270 -50 228.6 0 56.4 56.4 0.01-
0.11
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134.1 184.4 50.3 0.02-
0.07
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RC05-13 Puertos 709397 3174982 360 -80 137.8 123.4 137.8 14.4 0.1
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RC05-14 Viruela 707273 3176190 270 -50 254.5 102.1 187.4 85.3 2.6
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including 102.1 111.2 9.1 7.2
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225.5 243.8 18.3 0.6
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Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India. Drilling was undertaken by Layne de Mexico. Samples were sent to the ALS Chemex facility in Hermosillo for sample preparation, and then to the ALS Chemex laboratory in Vancouver for gold assay and ICP. Silver values were determined by ICP. Several of the higher grade samples have been sent for metallic gold assay and independent check assays. QA/QC procedures used include assay standards and blanks. The first 11 holes drilled by Grayd were in the La India zone in 2004.

Grayd Resource Corporation is a natural resource company engaged in the acquisition, exploration and development of mineral resource properties.

To view the maps attached to this release please click on the following links:

http://www.ccnmatthews.com/docs/0109gyd.pdf

http://www.ccnmatthews.com/docs/0109gyd1.pdf

The TSX has neither approved nor disapproved of the information contained herein.



Contact:
Marc A. Prefontaine, M.Sc., P.Geo.
Grayd Resource Corporation
President and CEO
[phone]
[phone] (FAX)
www.grayd.com

[phone] ext. 101
Freeform Communications Inc.


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Source: Grayd Resource Corporation