Grenville hires new auditor, creates holding companies

2007-10-05 09:45 ET - News Release

Mr. A. Paul Gill reports

GRENVILLE APPOINTS DELOITTE & TOUCHE AS AUDITORS AND PROVIDES COMPANY UPDATE

Grenville Gold Corp. has filed notice of a change of auditors on SEDAR. The company thanks past auditor Mackay & Associates for its assistance. The appointment of Deloitte & Touche, an internationally known firm with offices worldwide, including Peru, will assist Grenville in its efforts to establish viable, compliant and efficient mining operations.

Structuring developments

Also, in order to properly structure Grenville properties for any future transactions or revenues, Grenville has created two Canadian holding companies which will contain Grenville's 90-per-cent interest in the Silveria project and the Espanola project. In Peru, the existing subsidiary will undergo a name change and become one of two Peruvian companies that will house the Silveria project's mineral titles and the Espanola project's mineral titles, respectively. At present, none of the above contemplated changes in any way alters the ownership of the properties in question. The creation of a well-structured and multitiered company is essential to becoming a tax-efficient, flexible organization able to react quickly to any developing opportunities.

Silveria project update

At present, Grenville is building up the camp at Silveria and continuing the stockpiling of mineralized rock. The stockpile is scheduled to increase by approximately 2,000 tons per month. At present, Grenville is also currently working on:

  • A complete 3-D model of the Pacococha mine and the Millotingo mine;
  • Completion of the scoping study by Knight Piesold on viable tailings storage;
  • An updated and complete list of mineral titles owned;
  • Assaying samples from the face of some of the 44 veins recorded on the project;
  • Negotiating further agreements with the area communities;
  • An offer to acquire and/or control a local mill;
  • Creation of a new access road;
  • A plan for transporting mineralized rock;
  • A plan to process mineralized rock;
  • A plan to assess the quantity and quality of tailing located on-site;
  • An exploration plan for the Silveria property;
  • Continued rehabilitation on mine portals.

The Silveria project National Instrument 43-101 geological report is available on the company's website.

Further information on the Silveria project is also located on the company's website.

Ecuador update

The focus of Grenville on near-term mining operations has led to the creation of Minera Mine Grenville SA in Ecuador and the option of the La Tigrera gold project. The project is currently awaiting an NI 43-101 report to confirm the historic and non-compliant report of the Australian firm Climax Mining of 723,000 ounces of gold and 2.9 million ounces of silver. Grenville has reviewed its other Ecuador operations and has decided to abandon the grassroots Rio de Oro project and focus on projects closer to production. Exploration plans for this project have been terminated.