Goldrea Resources Corp.

Goldrea Resources Corp.

October 21, 2010 06:01 ET

Final Due Diligence of the Goldrea/Rushan Gold Project With European Fund in China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Larry W. Reaugh, President and Chief Executive Officer of Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) ("Goldrea" or the "Company") is pleased to report management will travel to China during the week of October 25th. The purpose of the trip is to complete the final stages of due diligence related to a $16,500,000US gold loan for the Daye Gold Mine property outside Rushan City. Negotiations with the European Fund were announced on Sept 3, 2010 and the loan, provided the lender is satisfied with its final due diligence, is expected to close before the end of the year.

The funds will be utilized as follows:

  • The sinking and completion of a 5.5 meter diameter production shaft (Golden Phoenix) to a depth of 500 meters. The shaft is designed to utilize two skips hoisting in balance capable of hoisting 1500 tonnes per day;

  • 2,030 meters of drifting and 640 meters of raises to connect the Golden Phoenix with the existing Golden Rose shaft;

  • 3,640 meters of development drifting and raises;

  • Exploration on the Ludi to complete the company's earn in with the 3rd Brigade;

  • Provide working capital and pay current liabilities as well as financing fees.

Goldrea/Rushan Joint Venture - Goldrea 90%, Rushan City 10%

The Company has developed a NI 43-101 indicated resource of 2.67 million tonnes grading 2.03 grams/tonne gold located down dip from the existing operating Daye Gold mill. Goldrea has completed the Golden Rose 3 meter diameter, concrete lined, 234 meter deep shaft; 5,300 meters of development drifting and raises; tested 22,000 tonnes of development material; and has an existing 8,000 tonne stockpile of development and stope material at the surface.

About Goldrea Resources Corp:

Goldrea Resources Corp. is a mineral exploration and development company that is engaged in the acquisition, exploration and development of mineral properties in North American and China.


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 TSX-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.

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