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Grey Rock options two properties in Mexico from Avino Silver and Gold Mines

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In order to acquire an 100% interest in the Ana Maria and El Laberinto properties in Mexico, Gray Rock is issuing Avino warrants to acquire 300,000 shares of Gray Rock at an exercise price of $0.20 for 36 months. Gray Rock must also pay Avino a total of $600,000 in cash or shares and incur a total of $750,000 in exploration expenditures both staged over 4 years. Gray Rock also granted to Avino a right of first refusal on 60 days' notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino's mine facilities.

Additional Information:

Company: Gray Rock Resources
Website: http://www.GrayRockResources.com
Stock Symbol: TSXV: GRK
Date Published: Aug 13, 2020
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for Investmentpitch Media

Gray Rock Resources has optioned two properties in Mexico from Avino Silver and Gold Mines.

In order to acquire an 100% interest in the Ana Maria and El Laberinto properties in Mexico, Gray Rock is issuing Avino warrants to acquire 300,000 shares of Gray Rock at an exercise price of $0.20 for 36 months.

Gray Rock must also pay Avino a total of $600,000 in cash or shares and incur a total of $750,000 in exploration expenditures both staged over 4 years.

Gray Rock also granted to Avino a right of first refusal on 60 days' notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino's mine facilities.

David Wolfin, President and CEO, stated: "These properties offer an opportunity for Gray Rock to explore in a well known and prolific silver district in Mexico. No modern exploration techniques have been applied to the Ana Maria asset however the geological features of the area look quite promising. Additionally, the historical work has identified mineralization and metal values that may be important components of the deposits on both properties. Gray Rock is eager to commence an initial exploration program once the agreement is finalized and the exploration program is financed.”

The Ana Maria property, which consists of 9 mining concessions encompassing 2,549 hectares, is located 1 km north of the town of Dinimita, in the Minitas mining district of Durango, Mexico.

Minimal documentation exists regarding the history and production at Ana Maria; however, historical reporting states that La Lucha was exploited for Iron and Manganese.

The region hosts a number of carbonate replacement deposits which typically produce silver, lead, zinc and copper although some districts, such as Ojuela approximately 10 kilometres from Ana Maria are enriched in gold relative to typical carbonate replacement deposits.

The El Laberinto Project, which encompasses 91.7 hectares, is located in the "Sierra de la Silla" approximately 60 kilometers northeast of the city of Durango City, México.

The main mineralized material at El Laberinto are comprised of iron, lead and zinc sulphides with minor silver sulphosalts.

Gold and silver are present with minor lead and copper and to a lesser extent zinc.

From September 2012 through to July 2013, work was carried out as part of an agreement between Avino and Endeavour Silver Corp. to test the potential of mineralization.

This historical work included a mapping and systematic sampling campaign, collecting a total of 208 samples on surface with values of up to 8 grams per tonne gold & 421 grams per tonne silver with the anomalous values mostly coming from the Laberinto Structure.

Although this information has not been validated nor verified it is considered reasonable and reliable.

The shares are currently trading at $0.205.

For more information, please visit the company’s website at www.GrayRockResources.com, call 604-682-3701 or email ir@GrayRockResources.com.

I’m Cassandra Bolinski for Investmentpitch Media