Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

November 19, 2007 09:00 ET

Gold-Ore Resources Ltd.: Bjorkdal Gold Mine-Exercise of Option to Purchase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) - Gold-Ore Resources Ltd. (the "Company") (TSX VENTURE:GOZ) is pleased to announce that the Board of Directors has formally and unanimously voted in favour of completing the Option to Purchase the Bjorkdal Gold Mine in Sweden. The acquisition is scheduled to close on December 17th, 2007.

The final payment to Minmet plc will include USD$2.0 million (CDN$1.87 million, Swedish Kronor $12.8 million) cash and 4 million common shares of the Company. The shares will have a mandatory 4-month hold as per TSX-Venture policy. In addition, Minmet will retain a sliding scale 0.5% to 1.75% Net Smelter Royalty (NSR) that varies based on gold prices. The NSR is currently payable at the rate of 1.75% and can be purchased at any time for US$1.0 million with cash or share equivalent.

In consideration for the payment, the Company will receive 100% of the issued shares of Bjorkdalsgruvan AB - the Swedish company that owns the Bjorkdal Mine. The assets of Bjorkdalsgruvan includes a fully operational 3500 tonne/day gold processing plant with a replacement value of US$40 million, all associated mineral resources, working capital of CDN$1.5 million, and 43 square kilometres of prime exploration territory.

"The combination of a producing operation and highly prospective properties provides Gold-Ore the unique opportunity to immediately become a gold producing company with excellent growth potential," states Glen Dickson, Gold-Ore's Chairman. "We now have a core business from which to expand our activities in Sweden. With our recent acquisition from Lundin Mining and the Bjorkdal Property we now control 80 continuous square kilometres covering highly prospective gold targets near the plant."

The Bjorkdal Mine is currently producing gold from surface stockpiles and from the underground workings. The mine will produce an estimated 20,000 ounces of gold during 2007. A feasibility study that addresses an underground mining expansion to 1500 tonnes per day is nearing completion.

During the last 20 months Gold-Ore has performed an exhaustive evaluation of the property by completing 2,000 metres of tunnels, 20,000 metres of diamond drilling (210 holes) and has received 22,000 gold assays. This evaluation has clearly demonstrated that the mineralization extends northwards from the open pit and is wide open to expansion.

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

Glen Dickson, Chairman

News Release 07-17

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