Grenville Gold Announces Advances at Silveria

At the Pacococha Mine also on the Silveria property, Grenville has opened the main entrance, gaining access to five of a total of twenty-four veins in the mine.

Grenville Chairman, Len deMelt commented by telephone from Peru, "I think the most exciting thing about the property is the number of oz of silver and the dollar value of the property."

Historical production on two of the four mines on the property, the Millotingo and Pacococha, up until 1991 was at least 510,291 kg of silver, 40 million kg of copper and 44 million kg of zinc.

Management aims for a grade of 113.4 g/t of silver, 1% copper and 2.5% zinc on 10-25 million metric tons of ore. The company's estimates are based on historic figures, which are not compliant with *National Instrument 43-101.

A test heap leaching program that the company is preparing to carry out on the Millotingo tailings dam is based on initial grade estimates of between 85-567 g/t silver and 1-3 g/t gold.

Len DeMelt described the drive through the property. "For kilometer after kilometer (the property is ten kilometers long) there's adit after adit and every one of them is mineralized. It's 10km by 6km of alterations all the way."

Further progress includes the environmental scoping study project, which Knight Piesold reports is 50% completed.

Grenville reports that in addition to acquiring documents and beginning to open up tunnels so they can get access to working areas, the company has also received aerial photographs and two topographic maps of the property detailing roads, buildings, tailings dams and rock dumps.

Grenville is currently planning an exploration program and a 43-101 on the Silveria property. The company announced an equity financing of $4 million on May 3, which "will be used towards the exploration and development of the Company's Ecuador and Peru properties, general reserves for future acquisitions and for general working capital."

*NI 43-101 is a Canadian regulatory instrument that governs the disclosure of mineral projects issuing in Canada.

Katherine Young writes for Resourcex Investor, an internationally distributed newsletter specializing in identifying as-yet-undiscovered resource companies representing the best in their class. For more information, visit the website www.resourcexinvestor.com.