Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

January 23, 2006 13:57 ET

Gold-Ore Resources Ltd.: Bjorkdal Gold Mine-Exclusive Option Signed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) - Gold-Ore Resources Ltd. ("Gold-Ore" or "Company") (TSX VENTURE:GOZ) is pleased to announce that the Company has signed the Exclusive Option Agreement to purchase 100% of the share capital of Bjorkdalsgruvan AB ("Bjorkdal") from Minmet plc of Dublin, Ireland. The assets of Bjorkdal include the operating mill, resources and exploration properties of the Bjorkdal gold mine. (Please refer to News Releases dated Aug. 10; Sept. 14; Oct. 31; and Nov. 12, 2005).

The Bjorkdal Property has significant resources in close proximity to the open pit. (See table below) Gold-Ore's objective is to complete a feasibility study for re-activation of the mining at Bjorkdal as rapidly as possible. The plant is currently operating at its rated capacity of 1.25 million tonnes/year. The metallurgy is simple and well understood. The mine is fully permitted and all environmental and socio-economic issues are well established.



Bjorkdal Gold Mine Resources - November 2005 (1.0 g/t cutoff)
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Resource Category Tonnes Gold Grade (g/t) Ounces Gold
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Measured and indicated 2,175,000 2.53 176,940
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Inferred 7,841,000 2.53 637,870
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The plant currently produces gold from low-grade stockpiles that averaged 0.60 grams/tonne gold during 2005. Cash costs (last 6 months of 2005) are USD$425/ounce. The stockpiles were recently surveyed and over 4 million tonnes of material is known to exist. At current gold prices, breakeven milling grades are approximately 0.50 g/t. The operating plant enables Gold-Ore to retain trained and efficient personnel on site and to process material extracted during the exploration program to recover some exploration costs.

Glen Dickson, Chairman commented on the signing of the agreement with Minmet "We are confident that the Bjorkdal acquisition has moved us a step closer to cash flow during this buoyant gold market. We have the opportunity to complete a comparatively simple feasibility study with a goal to achieve production at 75,000 ounces of gold annually as quickly as the first quarter of 2007. We look forward to working with the skilled team at Bjorkdal and exploring in the resource-rich Skelleftea District of Sweden."

Under terms of the Exclusive Option Agreement and subject to TSX Venture Exchange approval Gold-Ore will issue Minmet 5.84 million common shares and become operator of the project subject to a Management Committee. 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 Bjorkdal 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 cash or shares at anytime after exercising the Option.

The Company is designing a detailed exploration plan that is scheduled to commence in early March. The program will focus on grade and tonnage determination in the northern extension of the open pit where over 100 drill holes have defined a resource that is open to expansion.

Bjorkdal property information will continue to be 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

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
    Chairman
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    (604) 629-0400 (FAX)
    www.goldoreresources.com