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GYD Grayd Resource Corporation

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Share Name Share Symbol Market Type
Grayd Resource Corporation TSXV:GYD TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Grayd Increases Gold Recoveries at La India

20/11/2009 11:30am

Marketwired Canada


Grayd Resource Corporation (TSX VENTURE:GYD) today reported that recently
completed test work has increased the estimated overall recovery of gold to
between 80% and 84% for its wholly owned La India heap leach gold project
located in Sonora State, Mexico.


Grayd's President and Chief Executive Officer, Marc Prefontaine, said, "This is
very good news for the economics of the La India gold project. These most recent
tests indicate not only improved recoveries, but also that the crush size for
the rock can be larger, which could save significant operating costs."


The updated overall recovery estimates on the resource was determined by Grayd
and are based on seven new column leach tests completed at Kappes, Cassiday &
Associates (KCA) of Reno, Nevada, in conjunction with the results from previous
test work at KCA reported on August 11, 2008. The new tests were undertaken to
better quantify recoveries and optimal crush size on rock types which contain
significant amounts of oxide gold in the current resource.


Two of the new composite samples were comprised of material from five core holes
drilled in the North Zone. Each composite was tested at -25 mm (-1 inch) and
-9.5 mm (-3/8 inch). Recoveries were 96% and 97% at -25 mm and slightly lower at
95% and 93% for the finer -9.5 mm crush size. One composite was made up of core
from five drill holes in the Main Zone and was tested at the same two crush
sizes. It had recoveries of 80% at -25 mm and 79% at -9.5 mm. One sample of high
grade material from within a structurally controlled feeder in the Main Zone was
tested at -9.5 mm and had a recovery of 94%.


KCA normally discounts laboratory gold recoveries by two to three percentage
points when estimating field recoveries. Based on the relative volumes of
different rock types in the current resource and the results of the recent and
2008 tests, an average gold recovery in the range of 80% to 84% is indicated for
a heap leach processing operation at La India. The similarity in recoveries for
the two crush sizes is important economically as it indicates that the material
tested will only need to be crushed to - 25mm (-1 inch). Additional test work on
other rock types at the -25 mm size will be undertaken. Most of the gold was
recovered in the first 20 days of leaching, although the columns were leached
for 91 to 104 days. Lime and cyanide consumptions were relatively low. These are
all positive factors for the economics of a potential mine.


Material for the tests was collected by Grayd from the remaining half-core of
holes drilled in 2008. Samples were sent to the KCA laboratory in Reno where
composites were created. In addition to the column leach tests, KCA undertook a
series of grade, physical and environmental analyses. Hans Smit, P.Geo., VP
Exploration for Grayd, is the Qualified Person directing the exploration at La
India. Test work at KCA was under the supervision of Terence Albert, Manager of
Laboratory Services and Daniel Kappes, P.Eng., Qualified Person for KCA. Maps
showing the location of the drill holes where samples were taken from are posted
on Grayd's website (www.grayd.com).




Summary of 2009 Column Leach Tests

---------------------------------------------------------------------------
                       Weighted                                Addi-
        Calcu-              Avg.                               tion
Sample  lated  Extrac-     Tail                       Consum-  Hydr-   Addi-
Identi-  Head,    ted,   Screen, Extrac- Crush  Days   ption   ated    tion
fica-     gms     gms       gms     ted,  Size,   of    NaCN,  Lime, Cement,
tion    Au/MT   Au/MT     Au/MT    % Au     mm Leach   kg/MT  kg/MT   kg/MT
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Main
 Zone
 SV-SA   1.65    1.32      0.33     80%    -25    91    0.81   2.01    0.00
---------------------------------------------------------------------------
Main
 Zone
 SV-SA   1.55    1.22      0.33     79%   -9.5   104    0.77   0.00    3.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Main
 Zone-
 High
 Grade  13.25   12.47      0.78     94%   -9.5    91    1.60   0.00    2.99
---------------------------------------------------------------------------
---------------------------------------------------------------------------
North
 Zone
 SM-CE   1.08    1.04      0.04     96%    -25    91    0.82   2.01    0.00
---------------------------------------------------------------------------
North
 Zone
 SM-CE   1.09    1.03      0.06     95%   -9.5   104    0.92   0.00    3.01
---------------------------------------------------------------------------
---------------------------------------------------------------------------
North
 Zone
 SM-ES   1.16    1.12      0.04     97%    -25    91    0.88   2.10    0.00
---------------------------------------------------------------------------
North
 Zone
 SM-ES   1.04    0.97      0.07     93%   -9.5   104    0.83   0.00    2.98
---------------------------------------------------------------------------



The La India gold project is located in the prolific Mulatos gold belt of
Mexico's Sonora State. The project has a NI43-101 compliant gold resource of
559,000 ounces grading 1.01 g/t in the indicated category and 318,000 ounces
grading 1.05 g/t in the inferred category, all at a 0.5 g/t cut-off grade. The
resource consists of 17.2 and 9.4 million tonnes of indicated and inferred
material, respectively. This same district hosts Alamos Gold's Mulatos mine,
which produced 151,000 ounces of gold in 2008 and had a reported resource of
4.75 million ounces of gold at the end of 2008.


Grayd Resource is a growth-oriented junior natural resource company focused
primarily on identifying, exploring and developing precious metal deposits. The
Company's Officers and Directors are very experienced in all aspects of mineral
exploration, development and production and have been involved in a number of
successful mining projects around the world over the past 20 years.


The information in this news release may contain forward-looking statements.
When used in this release, words such as "estimate", "expect", "anticipate" and
"believe" as well as similar expression are intended to identify forward-looking
statements. Such statements are used to describe management's future plans,
objects, and goals for the Company and therefore involve inherent risks and
uncertainties. The reader is cautioned that actual results, performance or
achievements may be materially different from those implied or expressed in such
statements, which speak only as of the date the statements were made. The
Company does not update forward-looking statements continually as conditions
change.


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