VANCOUVER, British Columbia - May 8, 2012 - GREENLIGHT RESOURCES INC. (TSXV.GR), is pleased to announce that the TSX Venture Exchange has accepted for filing its property option agreement dated February 29, 2012 with Steve and Julie Farrell whereby the Company has been granted an option to acquire a 100% interest in the Gold and Graphite Christmas Island property (formerly Big Beach) located in the County of Cape Breton, Nova Scotia. Consideration is $60,000 cash and 350,000 shares payable over two years and exploration expenditures of $300,000 over three years.
The Company recently commenced an exploration program on the property to expand on known gold and graphite showings and conduct the first systematic geological exploration on the property to determine drill targets. GreenLight has recently completed a compilation of current and historic data consisting of Airborne and Ground VLF along with Mag and IP surveys. Surface outcroppings corresponding with the VLF-EM surveys have identified a sizeable graphite-bearing structure. These surveys appear to have identified widely disseminated graphite as well as graphite veining. Ground crews have been prospecting for further outcroppings of graphite and will be sampling known showings. The objective is to help identify drill targets for an upcoming drill program designed to test the graphite structure to width and depth. The field crews will also expand the prospecting program to explore several known gold showings on the property.
GreenLight is also pleased to report that it has been classified as a mid-tier graphite explorer by Industrial Alliance Securities Inc. in their recently published Sector Overview of graphite explorers. The Mid Tier companies are defined as companies with established targets, most of them drill ready. In this report, Industrial Alliance reviews the fundamentals behind graphite supply and demand which they believe to be ultimately pointing towards supply shortage in the upcoming years. Their model for future graphite supply and demand suggests that a minimum of 4 new mines and as many as 23 will be needed to go into production outside of India and China between now and 2020 to satisfy the growth in demand. The Company currently holds two graphite properties including the Christmas Island gold and graphite property in Nova Scotia and the Golden Grove graphite property in New Brunswick.
A summary of the 100% owned Christmas Island property is as follows:
-Large contiguous 5,760 acreclaim block hosting multiple near surface target areas, for Gold, Copper & Graphite. Numerous IP and geochemical anomalies, the longest of which is greater than a kilometre in length.
-Includes Gold (up to 5oz/t) and Graphite (up to 20% graphite in shear zones, up to 4% disseminated) showings identified from trenching.
-Excellent infrastructure with road access to the property
Flake Graphite Potential
Graphite samples were taken from graphite showings on the newly optioned lands and were tested in 2006. Samples were taken from graphite schist on the property and from the George River Marble along strike from the property. There is a historic graphite mine just to the south, dating from approximately a hundred years ago. Graphite mining of that time concentrated on the high grade, vein graphite, often found at sheared lithologic contacts between schist and carbonates. There is a good possibility that the more economically attractive disseminated flake graphite mineralization will be found within the George River Marbles that traverse the property. Also the distinctive geophysical anomaly occurring the property may indicate the presence of additional graphite or other conductive minerals.
Gold Silver and Base Metal Targets
The newly staked ground was acquired to cover an area of mineralization first mentioned in 1876 by the Geological Survey of Canada. They noted that a historic old gold shaft existed approximately 400 feet upstream from the mainroad crossing the property. In 1993/94 the Nova Scotia Department of Natural Resources looked for evidence of the gold mine and found a disturbed area with a quartz/sulphide dump. Samples from this dump returned as high as 5.76%Pb, 3.79%Zn, 1.48%Cu, 0.3%Bi, >0.1%Sb, 0.09%WO3, >50g/t (grams per tonne) Ag and 1.5g/t Au.Follow up work by prospectors a few years later received assays of 0.62g/t Au and 48.8g/t Ag from the rock dump samples. It appears from the dump rock that the mined vein was 1 to 2meters wide. The vein was never located in place at that time. Fifty meters to the south a quartz-carbonate-sulphide vein was identified that ran from 0.13 to 1.45g/t Au and 2.6 to 136g/t Ag. There has been little exploration work done here since that time. The prospectors did an IP survey that identified the mineralized structures and a spruce bark survey that indicated that there was an anomalous zone several hundred meters in length along the trace of the vein systems. The survey does correspond with graphite showings found at surface. Panning of the streams in the area showed there to be free gold in two adjoining streams. One stream was located 2.1kilometers to the SW and the other stream is 1.7km to the NE, which indicates the potential for a mineralized structure some 3.8 kilometers in length. The mineralization is hosted in quartz or quartz carbonate veins with sulphides that occur within a discrete shear zone approximately 100 meters wide which is controlled by a NE trending structure (Fault Zone) cutting both George River Group(Bras dOr Gneiss Complex) and the younger Shunacadie Pluton granites and granodiorites.
Readers are warned that "historical records" referred to in this release have been examined but not verified by a "Qualified Person". Further work is required to verify that the historical assays referred to in this release are accurate.
Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
On Behalf of the board of directors
Christopher R Anderson,
CEO - President 604 488-3900
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