Gold-Ore Resources Ltd.

Gold-Ore Resources Ltd.

November 15, 2005 09:30 ET

Gold-Ore Resources Ltd.: Bjorkdal Gold Mine-Acquisition Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2005) - Gold-Ore Resources Ltd. ("Gold-Ore") (TSX VENTURE:GOZ) is pleased to announce the results of the due diligence review of Bjorkdalsgruvan AB (Bjorkdal) of Sweden and associated assets. In addition, Gold-Ore has agreed to an amended Heads of Agreement outlining an Exclusive Option Agreement to purchase 100% of the share capital of Bjorkdal from Minmet plc of Dublin, Ireland. The assets of Bjorkdal include the operating mill, reserves/resources and exploration properties of the Bjorkdal gold mine. (Please refer to News Releases dated Aug. 10, Sept. 14 and Oct. 31, 2005)

Due Diligence

Gold-Ore retained Kenneth G. Lowe Consulting Services ("Ken Lowe") and Wardell-Armstrong International ("WAI") to carry out a due diligence review of Bjorkdal.

Ken Lowe prepared a financial and administrative report that concluded there is no financial, land or permitting issues of concern. The financial records are very clean, the claims are in good standing, the land of interest around the mine site is either owned or under lease and that the operation has all of the permits necessary to conduct business. Bjorkdal's lawyers and auditors confirm that they know of no issues or concerns.

WAI engineers conducted an on-site technical review of the operation including the open pit, mill, and tailings management facilities and did not identify any fatal flaws or impediments to acquisition. WAI is also preparing a NI 43-101 technical report on the reserves/resources that will be completed by shortly.

Gold-Ore is satisfied that the current operations are well managed and maintained and is proceeding with an Exclusive Option Agreement with Minmet. Gold-Ore has concluded that the Bjorkdal Property is an advanced stage exploration project that offers excellent potential to rapidly develop significant reserves in close proximity to the fully permitted, operating Bjorkdal mill that is efficiently processing low-grade stock pile material.

Revised Heads of Agreement

Under terms of the revised Heads of Agreement, Gold-Ore will enter into an Exclusive Option Agreement with Minmet to purchase Bjorkdalsgruvan AB. On signing the Exclusive Option Agreement, Gold-Ore will issue to Minmet 5.84 million common shares and become operator of the project. Gold-Ore will invest US$1.5 million in Bjorkdal that will be directed towards mine-site exploration. In addition, Gold-Ore will provide the initial US$500,000 of a standby loan facility that Bjorkdal can draw upon, if needed, for operating shortfalls. Subsequent shortfalls would be shared equally by Gold-Ore and Minmet.

The Exclusive Option Agreement gives Gold-Ore the right but not the obligation until December 31, 2007 to purchase 100% of the shares of Bjorkdalsgruvan AB by paying Minmet the equivalent of US$4.0 million in a combination of shares and cash. Minmet will retain a sliding-scale net smelter royalty of between 0.50% and 1.75% (based on gold prices) that Gold-Ore may purchase for US$1.0 million at anytime after exercising the Option.

The Exclusive Option Agreement will be subject to any required regulatory approvals.

Gold-Ore will announce exploration and development plans for Bjorkdal shortly.

Bjorkdal property information will continue to be posted on the Company's web site at Robert S. Wasylyshyn, P. Geo. is the Company's Qualified Person for the Bjorkdal Project.


Glen Dickson, Chairman

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

Contact Information

  • Gold-Ore Resources Ltd.
    Glen Dickson
    (604) 687-8884
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    (604) 629-0400 (FAX)