Lima, Peru, Oct. 16, 2013 (GLOBE NEWSWIRE) -- The Graystone Company (OTCQB: GYST) announced today an update on its Suriname mining operations and has uploaded videos to its Facebook page showing the company's excavator and mining crew working on the properties.
The Company has entered into 2 new prospecting contracts in Suriname. One is for 200 hectares ("Suriname 2") and the second one if for 2,400 hectares ("Suriname 3"). The Company is prospecting these properties with its joint venture partner and local operator. The Suriname operations are conducted as a joint venture whereby Graystone owns 40% of the joint venture. The joint venture is currently prospecting on the two properties and will enter into long term leases with the property owners if the results of the prospecting are favorable. The terms of these leases typically range from 10%-15% of the gold produced. Each property is owned by a separate company but are adjacent to each other. Pursuant to the prospecting contracts, the joint venture has 6 months of exploration rights with the ability to extend those rights by an additional 6 months. The Company expects that the joint venture will require the entire 12 months to finish its exploration activities. The joint venture also has the first right of refusal on Suriname #2 and has first right to identify 200 hectares on Suriname #3.
The joint venture has built out a camp for exploration and has the following equipment on hand: 1 hard rock crusher, one 4 month old Dooson excavator, two bush pick-up trucks, pumps, motors, and other various mining equipment. The joint venture has spent the last two months building roads and infrastructure within the properties and is currently working to identify sufficient water sources that would support full mining operations. The joint venture currently employs 8 full time employees and is employing a part time geologist and other mining consultants on as needed basis. The Company has uploaded videos on its Facebook page showing the excavator and mining crew working on the properties.
The joint venture is currently testing the properties in a grid pattern to identify high concentrations of gold rich material. After completing basic roads and camp a few weeks ago, the joint venture has commenced digging and bagging of samples to be sent to a lab for testing. These test areas are identified by GPS coordinates, bagged and sent to a lab in Suriname. The first batch of samples was sent to the lab this week. It takes approximately three to four weeks to process each sample at a cost of $200.00 usd per sample.
About The Graystone Company. The Graystone Company, Inc. is a U.S.-based mining and exploration company focused on acquiring and developing gold and other mineral properties. The Company's strategy is to build value for shareholders by the identification, acquisition and exploration of early-stage properties that show significant potential for the discovery of gold.
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