Gold Reach Resources Ltd.
TSX VENTURE : GRV

Gold Reach Resources Ltd.

July 30, 2012 08:30 ET

Gold Reach Expands West Seel Discovery With 400 Metres Grading 0.52% Copper Equivalent Including 114 Metres Grading 0.91% Copper Equivalent at the Seel Deposit, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 30, 2012) - Gold Reach Resources Ltd. (TSX VENTURE:GRV) (the Company) is pleased to announce that assay results for holes S12-103 and S12-104 at the company's 100% owned Ootsa Property located adjacent to the producing Huckleberry Mine south of Smithers, British Columbia, have been received.

HIGHLIGHTS

  • Gold Reach intersects 400 metres of 0.52% copper equivalent including 114 metres of 0.91 copper equivalent. All within a larger intersection of 961.2 metres of 0.34% copper equivalent.
  • Continues to expand the Seel and West Seel zone and overall resource.
  • Higher grade mineralized zone near surface at Seel.
  • Samples have been submitted for additional metallurgical testing.

Hole S12-104 was drilled into the West Seel zone and was oriented toward the northwest at an angle of 65 degrees and drilled to total depth of 1067.8 metres, and the results are summarized in the table below. This was the first hole of the 2012 drilling program at West Seel to be drilled toward the northwest and highlights the excellent potential to expand the West Seel deposit in that direction. The hole intersected 961.2 metres of continuous mineralization averaging 0.34% Cu Eq. starting at the base of gravel cover at 4.8 metres depth and extending to 966 metres depth. Hole S12-104 also encountered a large zone of higher grade mineralization including 400 metres from 368 to 768 metres depth averaging 0.52% Cu Eq., including 114 metres from 368 to 482 metres depth averaging 0.91% Cu Eq.

Summary of select drill intercepts - Holes S12-103 and 104
Drill
Hole
From
(m)
To
(m)
Width
(m)*
Cu
%
Au
g/t
Mo
%
Ag
g/t
Cu Eq.
%**
S12-103 24.4 618.0 EOH 593.6 0.15 0.17 0.010 1.14 0.32
including 24.4 520.0 495.6 0.16 0.19 0.010 1.17 0.35
including 24.4 170.0 145.6 0.34 0.40 0.001 1.34 0.63
including 426.0 520.0 94.0 0.13 0.10 0.043 1.32 0.39
S12-104 4.8 966.0 961.2 0.16 0.11 0.019 2.04 0.34
including 368.0 768.0 400.0 0.24 0.19 0.030 2.76 0.52
including 368.0 482 114.0 0.40 0.43 0.039 5.40 0.91
* 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 CuEq.% = Cu% + (Au g/t x 0.701) + (Mo% x 4.01) + (Ag g/t x 0.0087).

In addition to copper, gold, and silver, the West Seel deposit is returning large continuous zones containing very strong molybdenum mineralization.

Hole S12-103 was drilled into the Seel Cu-Au zone and will be used for detailed metallurgical test work. The hole was drilled toward the southwest at an angle of 60 degrees to a total depth of 618 metres. The hole intersected continuous mineralization over its entire length, averaging 0.32% copper equivalent (Cu Eq.) over 593.6 metres, starting at the base of gravel cover at 24.4 metres depth and extending to the end of the hole. The upper part of the hole encountered higher grade mineralization including 145.6 metres grading 0.34% copper and 0.4 g/t gold (0.63% Cu Eq.) from 24.4 metres to 170 metres depth. Hole S12-103 is consistent with other holes drilled into the Seel Cu-Au zone and intersected a near surface zone of higher grade Cu and Au mineralization that starts at the base of the thin gravel cover.

Metallurgical testing

Three samples for detailed metallurgical test work have been collected from the Seel deposit and sent to Inspectorate Exploration & Mining Services Ltd. in Richmond, BC for testing. Samples from the upper and lower part of hole S12-101 have been taken to test the metallurgy of the Cu-Au-Mo-Ag mineralization at the West Seel zone, and a portion of hole S12-103 has been sampled to further test the metallurgy of the Seel Cu-Au zone. Previous metallurgy done on the Seel Cu-Au zone indicated good metal recoveries including 93% recovery for copper and 85.6% recovery for gold on a rougher floatation concentrate (previously released see Gold Reach new release dated August 4, 2009). The current round of metallurgical test work will include further optimizing of recoveries through optimizing grind size, rougher and cleaner flotation testing, and locked cycle testing. Recoveries for copper, gold, silver, and molybdenum will be characterized.

Drilling Update

There are currently three drills operating on the Ootsa Property. Holes S12-101 to S12-111 have been completed and the drills are currently working on holes S12-112, 113 and 114, all located on the West Seel zone. A total of 11,217 metres of drilling have been completed during the 2012 program to date.

Holes S12-105 to 111 have been sampled and are in the lab getting assayed. Further assay results will be released as they are received.

The company is in the process of completing a 25,000 metre drill program aimed at defining the West Seel Porphyry and testing the expansion potential of the Ox deposit. The Company is well financed with over $6.2 million dollars in the treasury and holds a 2% NSR covering 23,000 hectares of mining claims located adjacent to the Blackwater Gold deposit in central British Columbia. Additional information is available on our website at www.goldreachresources.com.

About Gold Reach Resources

Gold Reach Resources Ltd. has made an important new and strategic Copper Gold Molybdenum discovery on its 100% held Ootsa Property directly adjacent to the 16,000 tonne per day Huckleberry Mine currently producing Cu, Au and Mo in central BC.

Gold Reach's Ootsa property is an advanced stage exploration project containing the Seel and Ox porphyry systems both with compliant resource estimates (details below) wide open for expansion. The Company has recently added the discovery of the West Seal Porphyry where Drill Hole S12-101 encountered 194 metres of higher-grade mineralization grading 0.71% Cu Eq. consisting of 0.22% Cu, 0.47 g/t Au, 0.04% Mo and 1.85 g/t Ag within a much larger 817 metre interval grading 0.45% Cu Eq. consisting of 0.20% Cu, 0.21 g/t Au, 0.026% Mo and 2.24 g/t Ag from 262 metres to the end of the hole at 1,079 metres. The Seel porphyry contains a NI 43-101 compliant resource containing 214.78 million tonnes grading 0.33% Cu Eq. consisting of 0.17% Cu, 0.13 g/t Au, 0.017% Mo, and 2.17 g/t Ag in the inferred category plus an additional 28.13 million tonnes grading 0.40% Cu Eq. consisting of 0.22% Cu and 0.21 g/t Au in the indicated category. The Ox porphyry, located 4 km northeast of Seel, contains a NI 43-101 compliant resource containing 16 million tonnes grading 0.3% Cu and 0.04% Mo in the inferred category.

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 analysis (which is an ISO 9001 and ISO/IEC 17025 certified lab), while the other half is archived and stored on site for verification and reference purposes. Gold is assayed by standard fire assay methods with 34 additional elements analyzed by Induced Coupled Plasma (ICP) utilizing a 4-acid digestion. 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, P.Geo., President of the Company, is the Qualified Person for the Ootsa project as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.

Shane Ebert, President/Director

Safe Harbour 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.

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