Gold Reach Resources Ltd.
TSX VENTURE : GRV

Gold Reach Resources Ltd.

February 24, 2014 08:00 ET

Gold Reach Provides a Summary of Results From 2013 Ootsa Exploration

Seel and Ox Technical Report Filed

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 24, 2014) - Gold Reach Resources Ltd. (TSX VENTURE:GRV) (Gold Reach and/or the Company) is pleased to provide a summary of exploration results from the 2013 exploration program at Ootsa. The Company's 100% owned Ootsa Property is located south of Smithers British Columbia, adjacent to the operating Huckleberry Mine, and contains the East Seel, West Seel, and Ox porphyry deposits.

HIGHLIGHTS

  • Large Pit Constrained Resource Base Defined on the Property - At a 0.2% copper equivalent cut off the Ootsa Property contains 154 million tonnes of measured and indicated resources plus an additional 223.6 million tonnes of inferred resource.
  • Contained Metals - At a 0.2% copper equivalent cut off the Ootsa Property contains pit constrained contained metals totaling 1.25 billion pounds copper equivalent in the measured and indicated categories plus 1.66 billion pounds copper equivalent in the inferred category.
  • Measured and Indicated Resources Increase 227%. The 2014 pit constrained resources contains a 227% increase in measured and indicated resources compared to the 2013 estimates.
  • 36,135 Metres of Drilling Complete - During 2013 a total of 36,135 metres of drilling was completed focusing on the Ox and Seel deposits.
  • 60 Line km of IP Completed - 60 line kilometres of induced polarization geophysical surveying was completed in 2013 and has helped to define numerous exploration targets.
  • 1330 Soil Samples Collected - 1330 soil samples were collected in 2013 and a new Pb in soil anomaly measuring 530 metres by 150 metres has been identified with good potential for base metal silver vein style mineralization.
  • New Gold Target - Grab samples from outcrops 18 kilometres east of Seel have returned 1.63 g/t Au and 2.02 g/t gold, identifying a new gold exploration target.
  • Technical Report Available - The technical report supporting the 2014 Seel and Ox resource estimates is complete and is available on Sedar and on our website (http://goldreachresources.com).

Resource Summary

Total resources for the Ootsa Property are summarized in the table below and are taken from recent resource updates conducted on the Seel and Ox deposits (previously released see January 13, 2014 and February 18, 2014 news releases). The table highlights the large pit constrained resource base that now occurs on the Ootsa Property within the Seel and Ox deposits. At a 0.2% Cu Eq cut off property wide NI 43-101 compliant resources contain 153.96 million tonnes in the measured in indicated categories plus an additional 223.57 million tonnes in the inferred category. The 2013 drill program resulted in 37.62 million tonnes at Ox being advanced to the measured and indicated categories, and at Seel 48.58 million tonnes were added to the measured and indicated categories, providing a very large increase in confidence in the deposits. The West Seel deposit remains open for expansion near the surface and at depth.

Summary of Open Pit Constrained Resources on the Ootsa Property
Deposit Class Cut-off
CuEq
Tonnes
(x1000)
Grade greater than Cut-off
Cu
(%)
Au
(g/t)
Mo
(%)
Ag
(g/t)
CuEq
(%)
Seel 2014 M&I 0.20 116,340 0.21 0.16 0.017 2.56 0.38
Ox 2014 M&I 0.20 37,620 0.21 0.04 0.027 1.53 0.33
Total M&I 0.20 153,960
Seel 2014 Inferred 0.20 211,390 0.18 0.12 0.021 2.29 0.34
Ox 2014 Inferred 0.20 12,180 0.18 0.03 0.021 1.31 0.28
Total Inferred 0.20 223,570
Seel 2014 M&I 0.40 39,780 0.29 0.25 0.024 3.14 0.54
Ox 2014 M&I 0.40 7,710 0.31 0.05 0.035 2.10 0.47
Total Indicated 0.40 47,490
Seel 2014 Inferred 0.40 51,640 0.26 0.19 0.031 2.80 0.49
Ox 2014 Inferred 0.40 370 0.30 0.04 0.033 1.86 0.44
Total Inferred 0.40 52,010

Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. A 'Measured Mineral Resource' is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified. M&I = measured and indicated. Copper equivalents (Cu Eq) for Seel use recoveries of 95% for Cu, 85% for Au, 86% for Ag, and 91.5% for Mo and for Ox use recoveries of 94.3% for Cu, 92.4% for Mo, 70.7% for Au, and 84.1% for Ag. Metal prices used are $3 lb Cu, $10 lb Mo, $1300 oz Au, and $22 oz Ag.

Ootsa Property Open Pit contained metals at 0.2% Cu Eq. cut off
Element Deposit Contained metal
Copper - M&I Seel + Ox 712,789,596 pounds
Copper - inferred Seel + Ox 887,197,146 pounds
Gold - M&I Seel + Ox 646,880 ounces
Gold - inferred Seel + Ox 827,748 ounces
Molybdenum - M&I Seel + Ox 65,996,234 pounds
Molybdenum - inferred Seel + Ox 103,505,984 pounds
Silver - M&I Seel + Ox 11,426,052 ounces
Silver - inferred Seel + Ox 16,076,991 ounces
Cu Eq - M&I Seel + Ox 1,248,341,080 pounds
Cu Eq - inferred Seel + Ox 1,659,706,450 pounds

Drilling Program

A total of 36,135 Metres of Drilling in 147 holes was completed at the Ootsa property in 2013. Of that 17,372 metres in 90 holes were drilled at Ox, 16,887 metres in 53 holes were drilled at Seel, and 1876 metres in 4 holes tested regional targets. The 2013 drilling program resulted in the extension of the Ox mineralized zone roughly 200 metres to the northeast, and the delineation of higher grade mineralized zones at Ox, East Seel, and West Seel. Highlights from the 2013 drilling program are summarized in the table below and have been previously released.

East Seel Drill Hole Highlights
Drill Hole From
(m)
To
(m)
Width
(m)*
Cu
%
Au
g/t
Ag
g/t
Mo
%
Cu Eq.
%**
S13-148 31.7 178 146.3 0.51 0.59 2.33 - 0.94
including 31.7 76 44.3 0.94 1.12 3.46 - 1.76
S13-155 30 268 EOH 238 0.38 0.47 1.93 - 0.73
including 30 190 160 0.44 0.53 1.98 - 0.83
including 42 86 44 0.62 0.67 2.76 - 1.11
S13-183 30.5 210 179.5 0.43 0.5 1.93 - 0.8
including 38 134 96 0.58 0.62 2.75 - 1.04
including 76 100 24 1.11 1.22 4.98 - 2.01
West Seel Drill Hole Highlights
Drill Hole From
(m)
To
(m)
Width
(m)
Cu
%
Au
g/t
Ag
g/t
Mo
%
Cu Eq.
%
S13-154 18 32 14 0.41 0.09 12.86 0.129 1.1
S13-154 60 356 296 0.23 0.22 4.44 0.016 0.49
including 60 82 22 0.33 1.19 9.94 0.021 1.33
including 218 340 122 0.3 0.17 4.7 0.016 0.52
S13-162 144 449 EOH 305 0.27 0.18 3.9 0.036 0.57
including 244 447.5 203.5 0.3 0.22 4.11 0.043 0.66
Ox Drill Hole Highlights
Drill Hole From
(m)
To
(m)
Width
(m)*
Cu
%
Au
g/t
Ag
g/t
Mo
%
Cu Eq.
%**
Ox13-46 5.1 167 161.9 0.36 0.06 1.85 0.028 0.53
including 19 97 78 0.49 0.08 2.15 0.035 0.71
Ox13-62 5.8 86 80.2 0.43 0.07 1.73 0.035 0.63
including 44 86 42 0.51 0.09 1.99 0.041 0.75
Ox13-71 24.6 384 359.4 0.25 0.04 1.19 0.031 0.41
including 57 109 52 0.5 0.09 2.65 0.037 0.73
Ox13-112 10 125 115 0.39 0.08 1.91 0.024 0.56
including 52 66 14 0.88 0.17 4.06 0.015 1.09
* 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 copper, molybdenum, gold and silver 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 silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Au g/t x 0.701) + (Ag g/t x 0.0087) + (Mo% x 4.01).

2013 Geophysical Surveying

Geophysical 3D induced polarization (IP) surveying was completed over 3 pre-cut grids (60 line kilometres) adjacent to the Ox and Seel deposits. A compilation map showing interpreted chargeability 100 metres below surface is available here http://goldreachresources.com/_resources/Oct-2013-IP-compilation-map.jpg. Two cross sections showing resistivity and chargeability are available here http://goldreachresources.com/_resources/Oct-2013-IP-long-sections.jpg. The West Ox and East Ox targets stand out as high priority exploration targets, they are similar in size to the Ox geophysical expression, and like Ox they both contain corresponding chargeability highs and resistivity lows. In 2013 4 holes tested a portion of the West Ox anomaly and intersected widespread alteration and sulfides with no significant mineralization. The intercepts appear to be analogous to the large pyrite-pyrrhotite halo that surrounds the Ox intrusion at the Ox deposit, and further drilling at the target is warranted to search for a mineralized centre.

The geophysical data is currently being merged into one data set and re-modeled along with available drill hole information to help refine exploration targets.

Surface Sampling Program

The company undertook a significant surface sampling and mapping program during 2013. During the program the company collected 1330 B-horizon soil samples, 42 stream silt samples, and 25 surface rock samples. The 1330 soil samples have been added to a property wide database composed of Gold Reach samples plus compiled historic soil samples, and that database now exceeds 7000 samples.

A map showing the location of all the recent and compiled soil samples on the Ootsa property is available here, http://goldreachresources.com/_resources/maps/20140212/soil_sample_location.jpg, and a map showing the distribution of copper in soils is available here http://goldreachresources.com/_resources/maps/20140212/copper_soils_map.jpg. The copper in soil map shows strong anomalies associated with the Seel and Ox deposits, with smaller anomalies evident at the West Ox and Damascus zones, and numerous scattered anomalies over the area.

The 2013 soil sampling program has discovered a large lead in soil anomaly located east of the Damascus silver-lead-zinc vein. This anomaly measures 530 metres by 150 metres in size and correlates with a strong north-south linear, interpreted to be a fault that is parallel to the fault controlling the adjacent Damascus vein. This zone has been termed the East Damascus Target, and the structural setting and large lead in soil anomaly make it a very good target for base metal silver vein mineralization, similar to that at Damascus. The lead in soil anomaly at the East Damascus Target is much larger and much stronger than the anomaly over the Damascus vein. A map showing the East Damascus target is available here
http://goldreachresources.com/_resources/maps/20140212/east_damascus_soils.jpg.

Two grab samples from the eastern part of the claim block (roughly 18 km east of Seel) have returned 1.63 g/t Au and 2.02 g/t gold from rusty quartz vein and breccia outcrops. Further exploration work is warranted at this zone to better understand the extent and significance of the mineralization.

Additional information is available on our website at www.goldreachresources.com.

PDAC Toronto

Gold Reach will be attending the Prospectors and Developers Association of Canada (PDAC) 2014 convention at the Metro Toronto Convention Centre, Toronto. The Company will have a display at booth 2525 in the Exhibitor Hall, level 800, from March 2 to March 5, 2014.

About Gold Reach Resources

The Ootsa property is an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry systems all with NI 43-101 compliant resources. The Company has completed 134,878 metres of core drilling on the property to date, with 36,135 metres completed during 2013. In total the Ootsa property contains compliant pit constrained resources totaling 1.25 billion pounds copper equivalent in the measured and indicated categories and 1.66 billion pounds copper equivalent in the inferred category, using a 0.2% copper equivalent cut off.

For more information on the Ootsa property and the contained resources please see our website at http://goldreachresources.com.

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 AGAT Laboratories 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 45 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

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.

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 event management's beliefs, estimates obligations or other factors should change.

Contact Information

  • Gold Reach Resources Ltd.
    Shane Ebert
    President/Director
    604-718-5454 or direct: 250-964-2699
    Toll Free: 888-500-4587

    B&D Capital Partners
    Don Mosher
    604-685-6465
    Don@bdcapital.com