March 31, 2011, Vancouver, BC: Silver Grail Resources Ltd. (“Silver Grail”) (“SVG”TSX-V) (“KD7”-Frankfurt) is pleased to announce that its Bay Silver property, situated 5km north of Stewart, BC and jointly owned with Teuton Resources Corp., has been farmed out to Decade Resources Ltd.
The Bay Silver property controls the old United Empire mine from which limited production of high-grade silver was seen in the 1920’s. Ore from the mine was shipped to the valley floor below by way of a tramline, portions of which still remain on the property.
The property contains numerous silver-rich showings some of them developed by hundreds of
feet of tunnels. In 1983 and 1984, high-grade ore was trenched from silver-lead-zinc veins, first explored in 1919. The No. 4 zone consists of a 1.2-metre-wide vein which strikes northeast and dips 20 degrees southeast. The vein contains 0.6 metres of massive galena, sphalerite and tetrahedrite in the hangingwall and 0.6 metres of quartz with disseminated sulphides in the footwall.
In previous assessment reports, a 0.61-metre chip sample across the vein assayed two grams
per tonne gold, 8679.7 grams per tonne silver, 20.3 per cent lead and 20.2 per cent zinc. The No. 3 zone is reported as being located about 100 metres south of the No. 4 zone. This shear zone contains long lenses of quartz mineralized with pyrite, pyrrhotite, galena and sphalerite. These lenses are up to 1.8 metres wide associated with a stockwork of sulphide stringers and are hosted in schist which has a strike of 150 degrees.
The lower showings, 300 metres east of the No. 4 zone, consist of two quartz-sulphide veins. The southernmost vein lies along the contact between a large granodiorite dike on the east and hornfelsed argillite to the west. The vein contains lenses of pyrrhotite, sphalerite, galena and tetrahedrite in a gangue of quartz. In a previous assessment report a 0.91-metre chip sample
across the vein assayed 42.30 grams per tonne gold and 1,273 grams per tonne silver. A second vein 120 metres to the north assayed 15.96 grams per tonne gold and 2,268 grams per tonne silver over a narrow width.
Under the terms of the agreement, Decade can earn a 100% interest in the claims by paying a total of $120,000 to Silver Grail and Teuton over a four year term. Silver Grail and Teuton will retain a 2% Net Smelter Royalty. An annual advance royalty of $25,000, indexed to inflation, is payable to Silver Grail and Teuton upon completion of the option payments.
The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng.
Dino Cremonese, P.Eng.”
Silver Grail Resources Ltd.
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