Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

January 10, 2008 09:30 ET

Gold-Ore Resources Ltd.: Bjorkdal Gold Mine, Sweden-Project Update and 2008 Plans

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - Gold-Ore Resources Ltd. (TSX VENTURE:GOZ) is pleased to summarize 2007 activities at the Bjorkdal Gold Mine in Sweden. On December 31, 2007 Gold-Ore completed the acquisition of the Bjorkdal Mine and, along with other acquisitions, has assembled 100% of the mineral rights to 73 square kilometres of highly prospective terrain covering numerous gold-tellurium occurrences and drill targets.

Highlights from 2007 include:

- acquired 100% ownership of Bjorkdalsgruvan AB and associated assets

- produced 19,200 ounces of gold

- completed 1,400 metres of underground tunnels

- drilled 13,400 metres in 128 holes

- commenced test mining

- initiated a resource estimate and feasibility study

- expanded land holdings

Bjorkdal Gold Production

The goal of the Company is to reduce feed from the low-grade stockpiles and increase production from underground while maintaining the 3,300 tonnes/day throughput thereby increasing annualized gold production to 50,000 to 75,000 ounces.

The Bjorkdal gold concentrating plant operated for 337 days during 2007 and produced 19,200 ounces of gold. The plant processed 1.1 million tonnes of ore at an average daily throughput of 3,300 tonnes/day. Gold grades averaged 0.63 grams/tonne with an average recovery of 85.2%. The surface stockpiles accounted for 85.5% of the plant feed while the underground production accounted for 14.5% of the material processed.

The Bjorkdal plant is in very good operating condition and is capable of sustaining production at rated capacity for years with normal maintenance and minimal upgrades.

2007 Exploration/Development Activities

In May 2007 the Company commenced a work program designed to test the feasibility of underground mining at Bjorkdal. The program involved diamond drilling, underground tunnelling and test mining, all of which were to be completed by year-end, and documented in a feasibility study. Due to contractor delays in procuring machinery, the test mining was delayed and was not initiated until mid-December, but is currently advancing rapidly.

The underground mining method selected for Bjorkdal is long-hole stoping utilizing stope widths of 2.5 to 3.0 metres with a sub-level spacing of 20 metres. The test mining will involve mining at least four stopes resulting in approximately 50,000 tonnes of plant feed.

Underground tunnels totalling 1,400 metres in length were excavated on two levels during 2007 (compared to 1,100 metres in 2006). The rock excavated from the tunnels was principally low-grade development muck and was processed resulting in the production of 2,500 ounces of gold that were sold at spot prices generating C$1.75 million. Two diamond drill rigs operated on the property all year and 128 holes totalling 13,400 metres (compared to 91 holes and 7,950 metres in 2006) were completed. Late in 2007 the emphasis in the drilling shifted from a systematic resource drill pattern to a broader step-out pattern to demonstrate a larger target dimension.

Step-out drill holes extended the strike of the gold bearing system another 300 metres beyond the underground development. The Company is very optimistic that the current development footprint can be extended to the northeast adding significant resources.

Resource Estimate and Feasibility Study

In June 2007 the Company commissioned an independent engineering firm, Wardell Armstrong International of Cornwall, England, to conduct a feasibility study that would address all issues regarding re-activation of the Bjorkdal Gold Mine as an underground mining operation. It was initially proposed that the study would be completed by the fourth quarter of 2007; however, delays in the test mining have impacted on the feasibility study. The study has examined the plant process, tailings disposal, mine design and mining methods, manpower and machinery requirements, rock mechanics and the mine closure plan. The study will be finalized at the completion of the test mining and resource estimate. An NI 43-101 compliant resource estimate is now underway and is also being conducted by Wardell Armstrong International. The completion schedule is for the end of February.

At the request of the Company's auditors, the Company commissioned GBM Materials Engineering Consultants to provide an independent evaluation of the Bjorkdal plant. GBM estimates that the replacement cost is US$40.0 million, not including infrastructure.

2008 Planned Activities

Between June and December 2007 an average 400 tonnes per day were mined from underground at Bjorkdal supplemented with 2,900 tonnes per day from surface stockpiles. Starting in January, with the onset of stoping, the underground output will increase to 750 tonnes per day. Upon completion of the test mining, the underground output will increase again with the addition of more mining equipment and crews eventually reaching 1,500 tonnes per day. The goal is to initially reach annualized gold production of 50,000 to 75,000 ounces. The Company plans to aggressively explore other nearby gold targets to further increase its annual gold production.

In October 2007 the Company purchased the adjacent Ronnberget Property where historic exploration work has identified Bjorkdal-style quartz veins that contain gold associated with tellurium. Significant gold grades were intersected in previous drill programs including 179.8 grams/tonne over 6.0 metres and 13.7 grams/tonne over 3.2 metres.

The database purchased with the Ronnberget Property included the results of a GEOTEM airborne geophysical survey conducted in the late 1990's. The Company is currently re-evaluating the results of this survey to identify additional targets on the property. The Company plans to assemble the database from all available previous work and conduct an aggressive diamond drill program to test several of the high priority targets.

Tellurium By-product

Gold mineralization at Bjorkdal is strongly associated with tellurium, tungsten and bismuth. Tellurium is currently enjoying increased demand from emerging new applications such as solar panels, high definition DVD discs and computer memory. Economically significant quantities of tellurium are found in the middling gold concentrate at Bjorkdal. Gold-Ore is investigating the by-product sales potential for this specialty metal.

Vallberget Property

The Company acquired the rights to purchase 100% of the Vallberget Project, a volcanogenic massive sulphide target in the historic Bergslagen mining district in central Sweden. Wide spread zinc and copper mineralization has been identified on the property. The Company plans an airborne geophysical survey as the first step in evaluating this project.

Bjorkdal property information is posted on the Company's web site at www.goldoreresources.com Robert S. Wasylyshyn; P.Geo. is the Company's Qualified Person for the Bjorkdal Project.

ON BEHALF OF THE BOARD

Robert S. Wasylyshyn, President

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.

News Release 08-02

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