VANCOUVER, British Columbia, Nov. 8, 2007 (PRIME NEWSWIRE) -- Grenville Gold Corporation ("Grenville" or "the Company") (TSX-V:GVG) (Other OTC:GVLGF) (Frankfurt:F9I) (WKN:A0KELU) announces that the company is assessing the economic viability of acquiring, leasing, building or refurbishing a processing plant in the vicinity of the Silveria Project. A processing facility is part of a comprehensive development plan for the Silveria Project which includes:
Phase I * Continuing the extraction and stockpiling of an initial 86,000 tonnes of mineralized rock for sale and transport to one of several under-utilized mills operating in the area. * Processing bulk samples of 10-20 tonnes of the stockpiled mineralized rock to confirm economic viability of the operation. * Signing a processing agreement with an operating mill to accept the initial 86,000 tonnes of mineralized rock as a pilot project. Phase II * Using cash flow from the above operation to acquire, rent, build or refurbish a mill to process mineralized rock from the mine and tailings to establish economic feasibility of processing each and increasing productivity. * Continuing with the grid sampling program across the entire project to identify drill targets. * Using cash flow and equity financing to follow-up the grid sampling program by drill-testing identified anomalies. * Establishing a 43-101 compliant resource based on an underground sampling program focused on proving up the conceptual target resource of 40-100 million ounces of silver from the open stopes related to 14 of the 44 veins partially mined in previous operations over the project area.
Readers are cautioned that no feasibility study has been performed on the project and no estimates are available as to the economic viability of this operation. The historical production from the Millotingo and Pacococha mines is outlined in the NI-43-101 in item 8.2 and table 8.6 and report by Minefill Services is available on the Company website at: http://www.grenvillegoldcorp.com/Corporate/LatestAnalysisReports/tabid/73/Default.aspx
The 43-101 also comments that the Millotingo Mine reported a historical resource in 1990, just before it closed in 1991.
Few readily available details exist as regards Millotingo mine, which is reported to have closed down in 1992 due to a combination of weak metal prices and local terrorist activity by Shining Path. It has, however, been reported (Lamond, 2006, Cavanagh and Glover, 1990) that the Millotingo deposit is characterized by 0.5 to one metre wide, silver-rich/base metal depleted veins that were mined from 1962 to 1992 by Cia. Minera Millotingo S.A. During this 30 year period a 350 tonnes per day mill was operated at the mine. 'On closure, the mine had a reported mineral resource of 661,000 tonnes grading 12.8 troy ounces per tonne of silver (Cavanagh and Glover, 1990). The resource estimate is not NI 43-101compliant..' (Stone, David M.R., P.Eng., Godden, Stephen, C.Eng, FIMMM, Technical Report on the Silveria Project, August 20, 2007)
As previously released June 4, 2007, the Silveria Project property was in production up until 1991, but has not received serious attention until now. Published documentation on historical production, reserves, reserve ore grades and estimated mine life at December 1990 on the Millotingo and Pacococha Mine are available through "The Peru Report's Guide to Mines and Miners in Peru -- Las Minas Del Peru", 1992, page 197-199, 223-225, researched and edited by Jonathon Cavanagh, (Published by Peru Reporting Servicios Editoriales S.R.L.)
Based upon the published information, mine plans, production records and reserve calculations obtained from operators of the two mines, the minimum historic production from two of the four mines indicates 39 million ounces of silver, 88 million lbs. of copper, and 96.8 million lbs. of zinc were produced. Management believes a potential target grade of 4 oz. per ton silver, 1.0% copper, and 2.5% zinc is attainable over a potential target tonnage of between 10 and 25 million metric tons of ore grade material.
The potential quantity and grades commented upon in the above paragraph are conceptual in nature as they are extrapolated from historic production and therefore cannot be relied upon. At present, there has been insufficient NI 43-101 compliant exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of an economically viable mineral resource. Investors are cautioned not to rely solely on this information. Grenville will continue working with contractors to complete the required NI 43-101 compliant resource and other studies that will allow for an economic model to be developed for the properties comprising the Silveria Project.
Grenville also announces that it has granted 1,500,000 stock options at $0.50 to certain directors, employees and consultants. The options are exercisable for up to five years from the date of grant. The options are subject to a four-month hold period to commence from the date of grant.
The technical information contained in this release has been reviewed by Jeffrey Reeder P.Geo, technical advisor for Grenville Gold and qualified person as defined in National Instrument 43-101.
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 operating 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,
"A. Paul Gill" President & CEO 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.