VANCOUVER, B.C., Sept. 27, 2007 (PRIME NEWSWIRE) -- Grenville Gold Corporation ("Grenville" or "the Company") (TSX-V:GVG) (Other OTC:GVLGF) (Frankfurt:F9I) (ISIN CA 3977181070/WKN:A0KELU) is currently in the process of stock-piling rock from several mineralized veins at the Silveria Project. To date, 2,800 metric tonnes of mineralized rock have been stockpiled, secured and are ready for transportation. President & CEO A. Paul Gill was recently interviewed by Dow Jones Inc. (see below) and discussed the company's development strategy.
The company has identified an additional 86,100 metric tonnes of mineralized rock which are accessible in the short term. Grenville's goal is to process the material as a bulk sample to test if the costs of extraction estimated in the Silveria NI 43-101 at $ 20 per metric tonne are accurate and if the processing the material is profitable. The next goal, in the short term, is find a mill in the local area that will be able to take the mineralized rock from Silveria for a price per tonne that would allow Grenville to establish a profitable operation on an ongoing basis. If a profitable operation is established, management will determine if and when further capital investments from equity or debt financings will be required to expand operations to build, buy and refurbish or rent a mill to increase the productivity of the operation. Grenville notes that no feasibility study has been performed and there is no certainty that the cost projections will be met, nor that the proposed operations will be economically viable. It is important to read the information contained in this release in the context of the Silveria 43-101, which states that the reserve information referred to has not been independently confirmed and cannot be relied upon. However, Grenville management is aware that profitable production from high grade mineralization at the Pacococha Mine likely occurred over the 30 years the operation existed. Also the 43-101 notes that there were various factors that halted production including low metal prices, disconnection from the Peru electrical power grid due to political upheaval and lack of capital re-investment to re-tool the mill. Grenville management is confident that these problems will not prevent current operations from succeeding.
In the mid-term, NI 43-101 non-compliant reserves reported in the Silveria 43-101 for the Pacacocha Mine in 1991 indicates 449,019 metric tonnes of mineralized rock grading 4.49 oz/tonne silver, 1.75% Copper, 1.47% Lead and 4.13% Zinc as described in Table 8.6 and 8.7 in the Silveria 43-101 are accessible. The above statistics were not independently confirmed by the authors and are therefore not 43-101 compliant and cannot be relied upon. It is important to take note of the authors' comments on the on the method of mining to fully understand why the previous mining operations established the term 'reserves':
"In common with many steeply dipping, narrow vein mining operations, the basis for the definition of the stated mineral reserves appears to have been in vein drifting and sampling:
* individual veins were accessed via drifts that extended from surface;
* vein drifts were developed in both directions (northeast and southwest), from the associated access drifts to surface;
* intersected vein lengths were measured (to define an average width), sampled and assayed; and
* the results were used as the basis for reserve estimation from which mineable/economically viable stopes were defined." (Godden, Stephen J. & Stone, David M., Silveria Technical Report, page 40)
If a profitable operation is derived from shipping mineralized rock to mills in the surrounding area, Grenville will estimate the life of the project considering metal prices and other risk factors to determine whether the building, purchasing or renting a mill to increase the profit potential from such an operation is warranted.
About Grenville Gold Corporation
Grenville Gold www.grenvillegoldcorp.com is a junior resource company seeking prospective properties in Peru and Ecuador. The company has three subsidiaries: 90% owned Inversiones Mineras Alexander S.A.C. in Peru which owns the Silveria Property, Espanola Property and the Chorobal Property, Minera MineGreville S.A. in Ecuador which has an option to acquire the La Tigrera Project, and Parkman Diamond Corp. in Ontario, Canada which owns the Parkman Diamond Prospect. Grenville Gold plans to leverage the experience of its Board and Management in exploration and mining to develop its growth strategy in North and South America.
The Grenville Gold Corp. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3048
On behalf of the Board of Directors,
"Tom Thomsen" Investor Relations Ph. 604-669-8842 info@grenvillegold.com
We Seek Safe Harbour
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.
Re-distributed with permission of author 19 Sep 2007 12:00 EDT =DJ CANADA VENTURE: Grenville Gold Looks For Peruvian Cash Flow By Brian Truscott Of DOW JONES NEWSWIRES VANCOUVER (Dow Jones)--Grenville Gold Corp.'s (GVG.V)future is going to be more about generating cash flow than the usual explorers' focus of churning out a bankable feasibility study to raise investor funds. The reason is simple enough: the Vancouver-based company's flagship Silveria project just outside Lima is in a historically rich mining area, but one where the base- and precious-metal veins are vertical or lens-like in nature. "The veins start at surface and can go down for hundreds of meters," said Grenville President and Chief Executive A. Paul Gill. 'In the past, (producers) have only done enough exploration to prove up a resource, say, two years out, because it wasn't and isn't economically feasibile to drill out the entire vein." Gill stepped in as Grenville's chief last November, following a management shake-up within the 14-year-old company. His arrival more or less coincided with Grenville's acquisition of the Silveria project, the name somewhat of a misnomer, given that the site is polymetallic in nature, more base than precious, and is also the location of four previous mines that operated for about 30 years starting in the 1960s. The Pacochocha mine, for example, produced silver, copper, lead, zinc and small amounts of gold for 28 years. The Silveria, Millotingo and Germania mines were more silver-centric, but all four mines relied upon antiquated mining techniques rather than more progressive oxidation methods to extract ore. "Silveria -- despite the name -- is more of a base-metals situation; past producers mined strictly for silver when most of these mines were in operation," he said. "Silveria and Germania actually have more interesting base-metal content, with copper, zinc and lead in fairly high grades in those areas." The bottom line: "You have this very interesting mix and we have, over the entire area, about 2,800 hectares (about 7,000 acres) of mineral titles," he said. Grenville isn't alone. About half-a-dozen companies are bidding for various mineral titles in the area as historical claims lapse. And one of the reasons for this excitement can be ascribed to some of Silveria's neighbors. About 25 miles down the road, Aluminum Corp. Of China Ltd. (ACH) is in the process of closing an C$840 million deal for Peru Copper Inc. (CUP) and its Toromocho mine in Peru, which may be one of the country's biggest copper mines come 2010. And then there's Pan-American Silver Corp.'s (PAAS) polymetallic Morococha mine, as well as its nearby Huaron silver-zinc mine. "We have a very similar setting where we have some good confirmation of high-grade mining operations in the area, a huge land package and, what's more interesting, no significant past exploration in the area -- producers just found veins and mined them," he said. To date, Grenville has now mapped 44 veins, 24 of them major veins on its site. "We're putting together one of the best information packages available," he said. That includes three-dimensional modeling, to find out where the various tunnels travel, where they intersect the veins as well as which areas have been stoped and tapped into and which areas have not. Updating Property Information Is Key Task An independent and broad-based geological report has looked at the historical veins as well as the old mine records and what was, in the past, classified as reserves within these mines. "It's now our job to take those old records, digitize them and collate them with the information we have," he said, adding that GPS and topographical mapping has also been done. "The real value of this area is not so much the land package as it is the information about the land package we have." He said Grenville's business plan is anything but small-scale. He points to Gold Hawk Resources Inc. (CGK.V), which operates its own Coricancha mine a few miles away. "They currently have a mill operating and are processing (historical) tailings as well as underground material, but they're finding gold in the tailings, which makes us interested because we have the surface rights for 3,400 hectares (about 8,400 acres) in our area," Gill said. "We did this to facilitate the potential processing of the tailings that are found on the surface - tailings from 30 years of mining in the area." There's also the mineralized material that's being extracted as Grenville cleans out existing tunnels on site as well as the various rock dumps that had been stockpiled in the past. "We think we can process this material profitably, but there's no way to do this without actually going in and doing bulk samples," he said. He said any effort to process the millions of tons of tailings would likely be a stand-alone project, one that could quickly generate cash flow -- funds that could be used to develop other aspects of its Silveria project. Gill said there are a number of mills in the surrounding area, meaning there's potential for finding an economically viable partner to process the tailings. "What we need to do is fill a mill -- take the material, process the rock and just start the operation," he said. "So what we're looking for here is to partner up and provide them with mill feed for the short term." That would generate cash flow to move its own operation ahead and let Grenville build its own on-site mill. "This makes the most economic sense," Gill said, adding that the company might ultimately decide to go it alone by simply building its own mill at an estimated cost of US$4 million. Cash on hand at the moment is C$500,000 but warrants are being exercised. As Grenville advances the Silveria project, Gill said another financing would probably have to be done unless the bulk of outstanding warrants are exercised. "There are other opportunities here as well," he said, pointing to Grenville's Espinola copper-gold property in Peru. "We don't have the time to properly pay attention to this one, so we may be looking at partners to joint venture that one," he said. The game plan is this: Clean up and process the mineralized rock dumps on the Silveria site, clean out the underground tunnels that have been mined and sample the rock to find out what mineral resource there is. Grenville will then look at the mineralized tailings and stockpiled rock as a potential project or projects that a company could either lease or even buy outright. "And then we're going to start exploration and drilling for a disseminated deposit, whether it be a base-metals deposit or gold, which may be under some of this incredible veining in the area," Gill said. Company Web Site: http://www.grenvillegoldcorp.com -Brian Truscott, Dow Jones Newswires; 604-669-1595; brian.truscott@dowjones.com (END) Dow Jones Newswires September 19, 2007 12:00 ET (16:00 GMT) Copyright (c) 2007 Dow Jones & Company, Inc.