Gold Reach Resources Ltd.
TSX VENTURE : GRV

Gold Reach Resources Ltd.

August 16, 2012 08:30 ET

Gold Reach Intersects 772 Metres Grading 0.44% Copper Equivalent Including 100 Metres Grading 0.81% Copper Equivalent at the West Seel Deposit, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2012) - Gold Reach Resources Ltd. (TSX VENTURE:GRV) (Gold Reach and/or the Company) is pleased to announce that assay results for holes S12-105 to S12-107 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 416 metres of 0.51% copper equivalent including 100 metres of 0.81% copper equivalent. All within a larger intersection of 772 metres of 0.44% copper equivalent.
  • The results continue to infill and expand the West Seel zone to the east, north and south.
  • Two drills continue to expand the West Seel discovery and one drill has started drilling the Ox deposit.

Hole S12-106 was drilled into the West Seel zone and was oriented toward the southwest at an angle of 64 degrees and drilled to total depth of 1146 metres, and the results are summarized in the table below. Mineralization was encountered at 120 metres depth in the hole and is continuous until 892 metres depth in the hole. Hole S12-107 was drilled into the West Seel zone and was oriented toward the northwest at an angle of 65 degrees and drilled to a total depth of 1045.5 metres. This hole encountered mineralization between 212 and 618.7 metres depth as summarized in the table below.

Summary of select drill intercepts - Holes S12-105 to 107
Drill Hole From
(m)
To
(m)
Width
(m)*
Cu
%
Au
g/t
Mo% Ag
g/t
Cu
Eq.%
**
S12-106 120.0 892.0 772.0 0.23 0.14 0.028 3.31 0.44
including 400.0 816.0 416.0 0.25 0.16 0.038 2.45 0.51
including 478.0 578.0 100.0*** 0.36 0.30 0.061 2.92 0.81
S12-106 889.4 890.1 0.70 7.07 3.97 0.039 131.0 10.02
S12-106 1042.0 1073.0 30.0 0.25 0.19 0.007 5.20 0.42
S12-107 212.0 618.7 406.7 0.18 0.14 0.009 2.21 0.34
*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).
***Excludes 4 metres of post mineral dykes.

Hole S12-105 was drilled into the West Seel zone and was oriented toward the southwest at an angle of 60 degrees and drilled to a total depth of 929.6 metres. This hole intersected anomalous to low grade mineralization over its entire length and constrains the western boundary of mineralization which appears to be gradational in nature. Low grade intervals from hole S12-105 include 72 metres grading 0.24% Cu Eq. from 214 to 296 metres depths, and 38 metres grading 0.31% Cu Eq. from 528 to 566 metres depth.

Mineralization at the West Seel deposit has now been traced over an area 700m long by up to 400m wide and to depths of up to 1000m below surface, and the zone remains open to the north, south, and at depth. An updated drill hole location map and cross sections showing the holes can be found in the map gallery on our website at www.goldreachresources.com. The ongoing drilling program is aimed at maximizing the size of the West Seel deposit ahead of a resource update that will commence later in the year once drilling is complete and results have been received.

Drilling Update

There are currently three drills operating on the Ootsa Property, 2 are drilling on the West Seel zone and one is drilling at the Ox porphyry. At West Seel holes S12-101 to S12-116 have been completed and the drills are currently working on holes S12-117 and 118. At the Ox porphyry holes Ox12-27 to 31 have been completed and the drill is currently working on hole Ox12-32. A total of 16,400 metres of drilling have been completed during the 2012 program to date.

Holes S12-108 to 116 and Ox12-27 to 30 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 $5.2 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 located 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 NI43-101 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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