Gold Reach Resources Ltd.
TSX VENTURE : GRV

Gold Reach Resources Ltd.

December 05, 2011 07:30 ET

Gold Reach Announces Significant New Cu-Au Discovery; Intersects 566 Metres of .51% Cu Eq

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2011) - Gold Reach Resources Ltd. (TSX VENTURE:GRV) ("Gold Reach" or the "Company") confirms the discovery of a new mineralized zone, which is open at length, depth and width. The Ootsa Property is located adjacent to the producing Huckleberry Mine, in central British Columbia. The final four 2011 drill holes (97-100) are from the newly discovered West Seel Deposit and all four holes have intersected long intercepts of continuous Cu-Au-Mo-Ag mineralization. Significant results are summarized in the table below and a map showing the location of the 2011 drill holes at Seel is available on our website at www.goldreachresources.com.

Hole 97 was drilled toward the northwest at an angle of -60 degrees and intersected 419.5m grading 0.23% Cu, 0.15 g/t Au, 0.025% Mo and 3.9 g/t Ag (0.47% Cu Eq.) from 120 to the end of the hole at 539.5m depth. Hole 98 was drilled toward the southwest at an angle of -60 degrees and intersected 571.9m grading 0.18% Cu, 0.12 g/t Au, 0.02% Mo and 3.8 g/t Ag (0.38% Cu Eq.) from 52m depth to the end of the hole at 623.9m depth. The lower portion of hole 98 returned 217.9m grading 0.22% Cu, 0.14 g/t Au, 0.03% Mo and 3.6 g/t Ag (0.47% Cu Eq.) from 406 to 623.9m depth.

Hole 99 was drilled toward the southwest at an angle of -55 degrees and tested the southern known extent of the West Seel Deposit. The hole intersected 543.9m grading 0.18% Cu, 0.12 g/t Au, 0.016% Mo and 3.2 g/t Ag (0.36% Cu Eq.) from 66m depth to the end of the hole at 623.9m including a higher grade zone containing 138m grading 0.26% Cu, 0.21 g/t Au, 0.028% Mo and 3.2 g/t Ag (0.54% Cu Eq.) near the bottom of the hole. Hole 100 was drilled toward the southwest at an angle of -66 degrees and is the deepest test of the West Seel Deposit to date. The hole intersected 566.7m grading 0.25% Cu, 0.17 g/t Au, 0.028% Mo and 3.4 g/t Ag (0.51% Cu Eq.) from 170m to the end of the hole at 736.7m. Hole 100 also intersected a higher grade zone returning 124m grading 0.27% Cu, 0.30 g/t Au, 0.051% Mo and 2.5 g/t Ag (0.71% Cu Eq.) from 548 to 672m depth.

Summary of select drill intercepts - Seel Property
Drill Hole From
(m)
To
(m)
Width
(m)*
Cu
%
Au
g/t
Mo
%
Ag
g/t
Cu Eq.
%**
S11-97 120.0 539.5 419.5 0.23 0.15 0.025 3.9 0.47
including 324.0 468.0 162.0 0.27 0.18 0.037 3.8 0.58
S11-98 52.0 623.9 571.9 0.18 0.12 0.020 3.8 0.38
including 406.0 623.9 217.9 0.22 0.14 0.030 3.6 0.47
S11-99 66.0 609.9 543.9 0.18 0.12 0.016 3.6 0.36
including 440.0 578.0 138.0 0.26 0.21 0.028 3.2 0.54
S11-100 170.0 736.7 566.7 0.25 0.17 0.028 3.4 0.51
including 374.0 510.0 136.0 0.29 0.20 0.033 4.0 0.60
including 548.0 672.0 124.0 0.27 0.30 0.051 2.5 0.71
* Width refers to drill hole intercepts, true widths have not been determined.
** Cu Eq. (copper equivalent) has been used to express the combined value of gold, copper, silver, and molybdenum as a percentage of copper, and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $2.50/lb copper, $1200/oz gold, $15/oz silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Au g/t x 0.701) + (Mo% x 4.01) + (Ag g/t x 0.0087).

This new discovery, located 250 metres west of the Seel Cu-Au zone, is partially hosted within an intrusive rock containing strong biotite alteration and a pyrrhotite-pyrite-chalcopyrite-molybdenite sulfide assemblage and partially hosted in a hornfelsed wallrock contact zone. The upper and eastern portions of the deposit occur within the main Seel porphyry complex. The deposit is concealed under shallow cover and to date it has been traced for 600m along strike, to depths of 500m and over widths up to 300m. Only 6 deep holes have tested the West Seel deposit to a maximum depth of 737m and the zone remains open to the west, north and south and at depth. All of the new holes into the zone end in mineralization and the deposit has excellent potential for expansion.

Holes 98 and 100 were drilled on the same section, with hole 100 located 60m back from 98 testing the same zone at deeper levels. The grades in the deeper hole 100 are significantly higher than the upper hole 98, which suggests the grade of the West Seel Deposit could be increasing with depth. This possibility is supported by holes 95, 97 and 99, which contain higher grade zones at depth compared to their upper levels.

Gold Reach is extremely pleased with the results from the 2011 exploration program at Seel. The companies stated goal for 2011 was to substantially increase the resource potential at Seel and this goal has clearly been met by tracing continuous mineralization at the Seel Cu-Au zone to over 700m vertical depth and through the discovery and partial delineation of the West Seel Deposit. In addition soil sampling at the Ox deposit has identified a copper in soil anomaly that is over 800m long by 250m wide that coincides with a historic IP chargeability anomaly. This zone also shows considerable potential for expansion and will be drill tested in 2012.

Geologic modeling of the Seel and West Seel deposit is currently in progress and a new resource estimate will be conducted by Giroux Consultants Ltd. of Vancouver and should be complete in the first quarter of 2012. The company currently has two compliant 43-101 resource calculations from 2008 at Seel and Ox.

Quality Control

All drill core is logged, photographed and cut in half with a diamond saw. Half of the core is bagged and sent to SGS Mineral Services for analyses while the other half is archived and stored on site for verification and reference purposes. Gold is assayed by standard fire assay methods with additional elements analyzed by Induced Coupled Plasma (ICP). Duplicate samples, blanks and certified standards are included with every sample batch and then checked to ensure proper quality assurance and quality control.

Dr. Shane Ebert, a qualified person under NI 43-101, has approved this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

Conrad Swanson, President

Safe Harbor Statement: The Company relies upon litigation protection for "forward-looking statements". The Company undertakes no obligation to update these forward-looking statements in the managements beliefs, estimates obligations or other factors should change

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold Reach Resources Ltd.
    Conrad Swanson
    President
    604-718-5454 or Toll Free: 888-500-4587
    www.goldreachresources.com

    Advanture Capital Partners
    Investor Relations
    604.563.5028 or Toll Free: 1.800.797.0193