Goldrea Resources Corp.

Goldrea Resources Corp.

June 11, 2007 06:00 ET

Drilling Continues at Daye as Plans for a New Shaft Are Finalized. Exploration Continues on the Langjiazhoung and Majiakuang Properties on the Rushan Goldrea Gold J.V., in Shandong, China.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2007) - Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) reports that the Company has completed 23,574 meters (77,342 feet) of exploration diamond drilling in 92 holes on its Daye property. The "Golden Rose" five compartment shaft has been completed to a final depth of 235.5 meters (773 ft) on May 14, 2007.

Goldrea has invested in excess of CDN $2,000,000 on exploration, including drilling, trenching, geophysical and geochemical surveys, mapping and shaft sinking. Goldrea has earned its 74% interest and Rushan City is opting to reduce to a 10% carried interest whereby Goldrea will have a 90% interest in the leases adjoining the Daye Mine Operation.

Drilling continues with four drill machines working full time on the Daye Property. Drilling was suspended during the winter months due to freezing conditions and the considerable distances for pumping water to the drills.

Exploration trenching is underway on the Majiakuang property where a shear vein structure has been defined over a strike length of 4.7 kilometers. IP surveys last year indicated several good responses on this structure and the trenching is part of an ongoing definitions program which is expected to define drill targets within the next couple of months. This vein structure runs primarily under cultivated ground. It has been exposed in the trenches and has been sampled. Assay results are pending.

Since completion of the excavation of the "Golden Rose Shaft" to a depth of 235.5 meters (773 feet) on May 14, 2007 the shaft sinking crew continued with the installation of the manways, piping and ventilation. The surface installation of a permanent headframe, hoist and buildings will follow immediately thereafter. The hoisting equipment has been ordered and is said to be available as soon as the site is prepared. The sinking headframe and other equipment related to the shaft sinking have to be removed before a permanent headframe can be constructed.

A new shaft, named the "Golden Dragon Shaft", will be collared just east of the Jingkou Zone as defined by the exploration drilling. The recommended location is at 4106900N, 40612000E. Work will begin as soon as the crews are available from the "Golden Rose Shaft" infrastructure installation. This location is subject to change depending on land acquisition agreements for the surface buildings and access roads with the local farmers. This shaft will provide access to the Jingkou Zone mineralization at a depth of +/-290 meters.

The use of rubber tired equipment and a decline is being investigated to work the shallower mineralization on the Jingkou and Tianjia Zones. If the ground will support a decline this mineralization becomes easily accessible without the need for a hoisting shaft. Geotechnical studies are underway to establish if ground conditions are suitable for this type of development and if a decline is possible.

Acquisition of Daye Mine: The Company is proceeding to set up the new legal Chinese Joint Venture Corporation which will have the assets and liabilities from the old Daye Corporation transferred to the new company in which Goldrea will hold an 80% interest. Also, Goldrea is proceeding with a two year audit in the Daye Mining company and formulating a five year mine plan to bring production up to the 60 - 75,000 ounce capabilities.

Assay results with be reported once they are received and evaluated.

This press release has been reviewed by Norman L. Tribe, P. Eng., a qualified person under NI 43-101.


Larry W. Reaugh, President and Chief Executive Officer

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Goldrea Resources Corp.
    Larry W. Reaugh
    President and Chief Executive Officer
    (604) 531-9639
    (604) 531-9634 (FAX)