Suite 220, 9797 45th Avenue
Edmonton, Alberta, Canada, T6E 5V8
Tel: 780-693-2265 Fax: 780-439-7308
TSXV: GZD Frankfurt: G6H
Shares Issued and Outstanding: 18,355,069
June 2, 2008
EDMONTON, ALBERTA-(June 2, 2008) -
Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to provide the following property and exploration update for a number of its 100% owned British Columbia precious and base metal properties.
Greenwood Property Update
Grizzly is pleased to announce that it has signed an amendment to the option agreement ("the Agreement") dated March 1, 2008 with Mineworks Ventures Inc. ("Mineworks"), a private B.C. based company at 'arms length' to Grizzly, to acquire 100% mineral interest in the Greenwood Property ("the Property") located in the vicinity of the town of Greenwood, BC. The amendment provides for the addition of the Copper Mountain and Motherlode claim groups, which will add a total of 61,650 acres (24,950 hectares) to the existing Greenwood Property, which brings the total land holding for the project to 77,225 acres (31,250 hectares). The Copper Mountain and Motherlode claim groups are road accessible from both Greenwood and Grand Forks and are host to or surround a number of historic mines and mineral occurrences including most notably the historic Motherlode, Sunset and Greyhound underground and open pit gold-silver-copper mines and the Copper Mountain copper-silver-gold showings. The historic Motherlode mines produced in excess of 178,000 ounces (oz) of gold (Au), 723,000 oz of silver (Ag) and 80 million pounds of copper (Cu) between 1900 and 1962.
A 2,300 line-km helicopter-borne AeroTEM III magnetic and time domain electromagnetic (EM) survey was commissioned in early May to fly the entire Greenwood Property and is expected to commence in early June. Ground crews provided by APEX Geoscience Ltd. have been mobilized to the project area to complete prospecting, stream sediment and rock sampling. Once the airborne survey is completed and the results of the initial field program are received field crews will be mobilized to the field to conduct follow-up exploration later in the summer or fall.
Exploration during 2008 will consist of an expenditure of about $400,000 that will include a comprehensive compilation of all prior exploration in the area along with the AeroTEM III survey, surface prospecting and a detailed creek and rock sampling program. This Phase 1 exploration will eventually lead to drilling during either fall 2008 or summer/fall 2009.
The Copper Mountain and Motherlode claim blocks of Mineworks have been added to the current Grizzly Greenwood Property holding for a cost of $12,500, 125,000 common shares over four years and an increased expenditure commitment of $50,000 during each of years 1 and 2 of the Agreement.
Peak Property Update
Grizzly has received final "overlimit" Ag and base metal assays for the remaining 2007 drillholes at the Peak Property near Smithers, B.C. Drillholes PK-13 and PK-20 targeted the UTE Vein and, along with the other seven drillholes drilled to test the UTE, resulted in expanding the known Ag-base metal mineralization over a strike length of 330 m along with identifying a previously unknown deeper zone of mineralization. (see Grizzly News Release dated February 25, 2008). Drillhole PK07-13, collared 70 m to the east of the main surface exposure of the UTE Vein, yielded an intersection of 1,410 grams per tonne (g/t) Ag (41.13 oz per ton (oz/t)) across 0.24 m core length with 0.86% Cu, 14.70% lead (Pb) and 3.10% zinc (Zn), and a deeper zone of 128.9 g/t Ag (3.76 oz/t) with 0.66% Cu, 1.25% Pb and 0.25% Zn over 1.13 m core length. Based upon the new ovelimit analyses, drillhole PK-20 drilled 240 m west of PK-13, yielded 1.17 g/t Au, 210 g/t Ag, 0.77% Cu, 1.51% Pb and 0.27% Zn over 0.90 m .
A field crew has mobilized to Smithers to initiate line cutting and an Induced Polarization EM survey at the Peak Property. Exploration during 2008 will consist of the IP survey, soil sampling and further drilling to follow-up widespread brecciation and alteration intersected during the 2007 drill program (see Grizzly News Release dated February 25, 2008). The proposed budget for the 2008 program is estimated at between $250,000 and $500,000 depending upon results of the IP survey and sampling.
Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds diamond properties in the Buffalo Head Hills, Birch Mountains and Pelican Mountain areas of Alberta totaling over three million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Company has five precious-base metal properties totaling over 95,000 acres.
All 2008 field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.
On behalf of the Board
Grizzly Diamonds Ltd.
Brian Testo, President
This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.
Shares Issued and Outstanding: 18,355,069
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Grizzly Diamonds Ltd.
Brian Testo
President
(780) 693-2242 or (780) 425-BEAR(2327)
Website: www.grizzlydiamonds.com
or
AGORACOM
Investor Relations
Email: GZD@Agoracom.com
Website: www.agoracom.com/IR/Grizzly
