Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

January 16, 2007 09:30 ET

Gold-Ore Announces a Non-Brokered Private Placement for Up to $6,720,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Gold-Ore Resources Ltd. (TSX VENTURE:GOZ) is pleased to announce a non-brokered private placement to raise gross proceeds of up to $6,720,000.

Up to 12,000,000 units will be offered at $0.56 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share at a price of $1.00 per share for a period of 18 months from the closing date of the financing.

The Company will pay to arm's length third parties or registered dealers a finders fee of 6% cash and warrants to acquire that number of common shares equal to 5% of the units placed, subject to regulatory approval.

Glen Dickson, Gold-Ore's Chairman states, "This financing will allow us to complete the Company's strategy of testing the feasibility of re-activating mining at the Bjorkdal Gold mine in Sweden, and if positive, exercising the option to purchase Bjorkdalsgruvan AB from Minmet plc. Commercial production could commence shortly thereafter and anticipated cash flows generated would be used to intensify exploration of both underground and open pit targets to expand the gold resources proximal to the plant. We are optimistic that with positive results, we can achieve commercial production by the end of 2007 and target full production of 75,000 to 80,000 ounces of gold per year in 2008."

Phase II Development Program

The Board of Directors of Gold-Ore has approved a $5.3 million budget for an aggressive Phase II work program at Bjorkdal that will involve data collection for a feasibility study coupled with on-lease exploration. Exploration will test both underground and open pit targets on the 43 sq-km property.

Test Mining/Bulk Sampling

The priority for the Phase II program and the main determinant for the feasibility study is to test the economics of underground mining. This will be accomplished by mining bulk samples from various veins using long-hole stoping techniques at different vertical levels. The bulk samples, projected to be 25,000 to 50,000 tonnes, will be processed by the Bjorkdal plant. The underground mining is anticipated to start in April.

It is anticipated that test mining will generate revenue from gold sales and reduce the cost of the Phase II program. Gold sales from the 2006 Phase I program generated proceeds of approximately USD$1.5 million, thereby reducing expenditures.

Diamond Drilling

Over the next nine months diamond drilling will continue with a projected 10,000 to 15,000 metres. To date, 8,400 metres in 95 holes has been completed in the Main Tunnel area. Drilling will be expanded to include the Central Tunnel area in the central portion of the open pit. As well, a surface drill rig will test the large gold target that extends 900 metres northeast of the open pit to Storheden, a gold target that has been defined by 68 historic drill holes.

Additional Tunnel Development

The Phase II program will enable additional tunneling to develop a larger footprint in the main pit area and allow for expansion to the northwest. This area of the pit has numerous historic drill holes that have intersected significant gold values.

Airborne Geophysical Survey

An airborne geophysical survey will be flown on the Bjorkdal concessions during January. This helicopter-borne survey will cover a minimum 430 line-km at 150-metre line spacing. The on-board AeroTEM II system consists of an EM (electromagnetic) bird capable of testing conductivity and magnetic susceptibility. This survey will test for "Boliden-style" targets associated with heavy sulfide accumulations as well as map stratigraphy with the magnetics. The Boliden deposit is located 12 km to the SW and produced in excess of 4 million ounces of gold at an average grade of 15 grams per tonne.

Bjorkdal property information is posted on the Company's web site at www.goldoreresources.com.

ON BEHALF OF THE BOARD

Glen Dickson, Chairman

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information

  • Gold-Ore Resources Ltd.
    Glen Dickson
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    (604) 629-0400 (FAX)
    Website: www.goldoreresources.com