Goldcliff Resource Corporation

Goldcliff Resource Corporation

June 05, 2007 19:30 ET

Goldcliff Plans Gold Resource Definition Drilling at Panorama Ridge-Confirming Uranium Mineralization at Big Sheep Creek-Targeting Silver and Molybdenum at Ainsworth-Plus a Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) - George W. Sanders, President, of Goldcliff Resource Corporation (TSX VENTURE:GCN), is pleased to announce the 2007 exploration plans for substantial work on three of its 100-per-cent-owned properties. The focus of activity will be the expanded drilling -- including verification of the silver, molybdenum and uranium anomalies -- on Goldcliff's lead asset, the Panorama Ridge gold project in the Hedley gold camp. A 10,000 metre drill program at Panorama Ridge is planned with the first phase of drilling to concentrate on the resource definition of gold mineralization on the York-Viking and Nordic zones. In addition, airborne geophysical surveys will be flown at the Ainsworth (silver, molybdenum) and Big Sheep Creek (uranium) properties. The airborne surveys are an important exploration phase for enhancing the significant uranium, silver and molybdenum anomalies that have been identified on the ground.

This is a key year in the development of the Panorama Ridge property as work transitions from the exploration of several gold showings to resource definition drilling. Over the past four field seasons, 4,276 metres of trenches have been excavated and 77 diamond drill holes have been completed for 7,621 metres. The work has identified several gold showings on Panorama ridge: the York-Viking, Nordic, Spar and Tower. All these zones have surface and drill- intersected gold mineralization. Panorama ridge is a prominent topographic feature in the Hedley gold camp, extending over three kilometres along its long axis and over one kilometre across. The better grade gold mineralization trends along the crest of the ridge and wraps around both flanks. The geometry of the gold mineralization is well suited to the potential of open pit mining.

The work at Panorama ridge has established the connectivity, geometry and continuity of the gold mineralized at the York-Viking and Nordic zones. At the York-Viking zone, the gold mineralization covers a surface area of 500 metres by 280 metres along the ridge. The area drilled to date is over 150 metres by 280 metres of the zone, and the zone is open to the southwest and northeast. The Nordic zone is open to the northeast. The objective for 2007 is to establish a gold resource in the York-Viking and Nordic zones and explore the gold potential of the other zones.

The Big Sheep Creek uranium project covers 32,388 hectares and is located in the south Kootenay district in British Columbia. The claim block covers a large, Tertiary granitic intrusive. The regional stream sediment sampling program (RGS 1976-1987) by the British Columbia Geological Survey returned a number anomalous uranium values including two samples exceeding 300 parts per million (ppm) uranium or 0.03 per cent uranium. The majority of the anomalous uranium samples occur along or near a major north-south structure and within a magnetic low. The regional magnetic low within the intrusive body is interpreted as an alteration feature that could be associated with uranium mineralization. Goldcliff has identified the stream drainage systems where the highest uranium values occur. The airborne gamma ray spectrometer geophysical survey that is to be flown is intended to locate uranium signatures associated with the uranium anomalies, regional structure and inferred alteration features. The "granitic-intrusive-uranium model" associated with uranium mineralization is a well defined model for uranium deposition, the best known of which is the bulk tonnage Rossing deposit in Namibia, Africa, where uranium ore grades are in the 300 ppm uranium range (0.03 per cent uranium).

The Ainsworth project (silver, molybdenum) covers 56,997 hectares and includes ground on both sides of Kootenay Lake in the historic Ainsworth silver district. Goldcliff's silver exploration model focuses on the younger intrusions as the source of the silver mineralization and the older intrusions/sediments as the receiver of the silver mineralization. The traditional silver mined in the district came from shears and veins of high grade silver deposits in intrusive and sedimentary rocks. As such, Goldcliff's silver model targets the lower-grade silver mineralization that is associated with the high grade silver veins. The host rocks are intrusive and/or sedimentary rocks that are associated with structural breaks, stock-works and intrusive-sedimentary contacts. This silver-dissemination model is evidenced on the west side of Kootenay Lake in the Ainsworth district where high grade silver deposits occur along and within the geological model.

The Goldcliff claims in the Ainsworth district cover numerous high-grade silver deposits and several valleys are targeted for airborne and ground exploration. In one valley, eight silver deposits have been recorded with the historical silver production of silver grades ranging from 100 to 300 grams silver per tonne (MinFile Reports). The silver mineralization occurs in deposits that are in intrusive rocks, located to the west of the valley and sedimentary rocks, located to the east. The silver deposits trend in an east-west direction and extend over a distance of 10 kilometres. The area between these two different silver deposit settings is geologically favourable for new silver deposit discoveries.

For molybdenum on the Ainsworth claims, Goldcliff is particularly interested in the Loki molybdenum occurrence that is located on the east side of Kootenay Lake on the Ainsworth project. In 1980, Duval International Corp. discovered the Loki molybdenum showing. Duval's work identified a kilometre long molybdenum soil geochemical anomaly in a porphyry setting. The rock chip follow-up sampling confirmed the source of the soil anomaly and returned values as high as 1180 ppm molybdenum from outcrop. Goldcliff plans an airborne electromagnetic and magnetic geophysical survey for the Ainsworth project to further enhance is geological silver model and expand on its porphyry molybdenum mineralization.

Leonard W. Saleken, PGeo (Geologist), and Edwin R. Rockel, PGeo (Geophysicist), are the qualified persons as defined by National Instrument 43-101 who supervised the preparation and verification of the technical information in this release.

A preliminary budget of $1,500,000 will be financed by cash on hand and completion of a non-brokered private placement offering of up to 4,000,000 flow-through units at a price of $0.31 per unit. Each unit comprises one flow through share and one half non flow through share purchase warrant. One whole share purchase warrant entitles the holder to purchase one common share at a price of $0.50 per share for a period of one year from closing. Goldcliff will pay a cash finders' fee of 7.5 per cent for any parts of the issue introduced by third parties. Units issued will be subject to regulatory approval and a four month resale restriction.

Lead subscribers will be MineralFields Group and Cordilleran 2007 Limited Partnership. Goldcliff management is pleased to be entering into a relationship with these two important resource-financing institutions.

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.


George W. Sanders, President and Director

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