Vancouver, BC V6C 3P1
GRAY ROCK RESOURCES LTD.
Suite 900 – 570 Granville Street
Vancouver, BC V6C 3P1
Ph: (604) 682-3701 ♦ Fax: (604) 682-3600
www.grayrockresources.com ♦ [email protected]
February 2, 2017 TSX-V Trading symbol: GRK
BCGS Releases New Study of Otter Creek Lode Gold, Surprise Lake Project, Atlin Mining Camp
Gray Rock Resources Ltd. (GRK: TSX.V, "Gray Rock" or the “Company”) is pleased to announce the release of
petrological and geochemical studies by the British Columbia Geological Survey (BCGS) from the July, 2016
discovery of coarse visible gold mineralization in bedrock along Otter Creek at the Godkin (Otter Creek) pit
on the Company’s Surprise L ake Project (BCGS Paper 2017-1, p.179-193). The road accessible Surprise Lake
Project, 18 kilometers east of the town of Atlin in northwestern British Columbia, is owned by DeCoors
Mining Corp. which has signed a binding letter of intent to transfer owners hip of 33 mineral titles to Gray
Rock Resources Ltd. (September 30, 2016 news release). The paper describes a different geological model to
explain the coarse gold in bedrock along Otter Creek, different host rock, and the source of the nuggets
found in the Atlin placers. This new approach significantly expands the target area for lode gold exploration
in the Atlin mining camp.
The following is a summary of the BCGS paper. Primary exploration targets for lode gold near Atlin,
northwestern British Columbia, have historically been listwanite altered ultramafic and mafic bedrock
(considered to be the source of the nearby placer deposits) and locally do contain fine visible gold. The
discovery of coarse lode gold (>5 mm) in bedrock at the Otter Creek pit in 20 16 on the Surprise Lake Project
initiated the BCGS study. The study concluded that the coarse gold in bedrock, and probable associated
placers, may be related to Jurassic age deformation and batholith development. The native gold in bedrock is
intergrown w ith quartz- albite veins, and occurs as open space fillings and within both the quartz vein
stockwork and encasing, commonly graphitic, sedimentary phyllite (see photos on following page or refer to
page 185 of the paper). The study does not imply that an e conomic lode gold deposit has or will be found on
the Company’s Surprise Lake Project. However, this new conceptual model will serve to guide future
exploration toward that end.
Exploration on the Surprise Lake Project in 2016 returned significant results from the coarse visible gold
discovery area along Otter Creek including three one meter samples of 42.1, 6.89 and 3.05 g/t Au, with grab
samples of 20.8 and 4.11 g/t Au, 550-600m north of the discovery (October 31, 2016 news release) which are
accompanied by anomalous arsenic, antimony and bismuth.
The new lode gold discovery along Otter Creek is detailed in the Company’s NI 43-101 technical report on the
Surprise Lake Project which has been filed, and can be viewed under the Company’s profile, at
www.sedar.com. There has been no drilling conducted on the new discovery and no drilling by the Company,
but 1705m of historical diamond drilling in 15 holes was completed on the Surprise Lake Project, targeting
altered ultramafic and mafic bedrock as opposed to the underlying phyllitic sedimentary rocks which host the
new discovery. Details of this historical drilling are outlined in the Company’s NI 43 -101 technical report on
SEDAR. The Company’s news release of October 31, 2 016 mistakenly reported that no drilling had occurred
on the over 5,000 hectare Surprise Lake Project.
(A-D) Gold-quartz veins from bedrock in the 2016 Otter
Creek Mines pit (A) Gold -quartz vein within foliation of
light-coloured phyllite. Green -tinted white blocky
crystals labelled “Ab” are probably albite. (B) Gold -
quartz vein appears to cut across a second cleavage,
Sn+1, in black phyllite. (C) Gold -quartz vein follows
cleavage in black, graphitic phyllite, and gold extends into country rock along fo liation. (D) Gold -quartz vein
in black phyllite (BCGS Paper 2017-1, page 185). Photos are from the bedrock in the Otter Creek (Godkin) pit
on the Surprise Lake Project.
The full text of BCGS Paper 2017-1 can be found in the following link:
http://www.empr.gov.bc.ca/Mining/Geoscience/PublicationsCatalogue/Fieldwork/Documents/2016/10_Mih
alynuk_et_al.pdf)
Qualified Person
Mr. John Buckle, P.Geo., P.Geoph., a Qualified Person as defined by NI 43-101, has reviewed and approved the
scientific and technical disclosure in this news release. At the closing of the property purchase agreement
between DeCoors Mining Corp. (“DeCoors”) and the Company, previously announced on Sept. 30, 2016, Mr.
Buckle will be appointed as a director of the Company, and he will receive 750,000 common shares of the
Company from DeCoors.
ON BEHALF OF THE BOARD
"David Wolfin"
________________________________
David Wolfin
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release. This release co ntains statements that are forward-
looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the hea ding “Risk
Factors” and elsewhere in the Company’s periodic filings with Canadian securities regulators. Such information contained herein
represents management’s best judgment as of the date hereof based on information currently available. The Company does not
assume the obligation to update any forward-looking statement.
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