Goldrea Resources Corp.

Goldrea Resources Corp.

August 23, 2007 06:00 ET

Goldrea Resources Corp.: Acquisition Update: Fill-In Drilling Continues/Plans for a Second Shaft Finalized/Shandong, China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) reports that the Company is continuing to drill fill in holes on the Jingkou zone at the western end of the structure. The "Golden Rose Shaft" has reached its ultimate depth and the shaft fittings are complete. The construction of the production hoisting equipment and the associated infrastructure is underway. This is expected to be complete by early October. This shaft is a 5 compartment concrete lined shaft designed for an ultimate depth of 234 meters (768 feet).

Daye Mine Acquisition

The Daye Mine acquisition is progressing favorably with approvals being received from Weihai City and Rushan City. Meetings are currently being held in the Shandong Province capital city Jinan to pursue the provincial approvals. There is a strong possibility that once the acquisition is approved by the Province, Central Government approval will not be required.

Drilling continues with two drill machines working full time on the Daye Property. Two more machines have been ordered to start as soon as they are available.

A new shaft, named the "Golden Dragon Shaft", will be collared just east of the Jingkou Zone as defined by the exploration drilling. The recommended location is at 4106900N, 40612000E. Work will begin as soon as the crews are available from the "Golden Rose Shaft" infrastructure installation. This location is subject to change depending on land acquisition agreements with the local farmers for room to put the surface buildings and access roads. This shaft will provide access to the Jingkou Zone mineralization at a depth of plus or minus 290 meters.

Detailed drilling is required before a mining permit and mining lease are issued. This does not preclude shaft sinking for exploration purposes to provide access for both exploration drifting and underground drilling.

The use of rubber tired equipment and a decline is being investigated to work the shallower mineralization on the Jingkou and Tianjia Zones. If the ground will support a decline this mineralization becomes easily accessible without the need for a hoisting shaft. Geotechnical studies are underway to establish if ground conditions are suitable for this type of development and if a decline is possible.

Recent Drilling results in the Daye property include:

` Depth in Meters Interval Gold
Hole FROM To m. Gpt
GZK 750 132.73 133.60 0.87 1.56
GZK 849 76.50 77.50 1.00 1.81
GZK 849 80.82 81.62 0.80 1.86
GZK 863 304.41 304.83 0.42 1.80
GZK 863 305.26 307.26 0.20 1.60

Long range planning meetings have been held to facilitate a smooth takeover when approvals for the Daye Mining Group's Daye Mine/Mill complex acquisition is complete. The object of this planning is to bring the underground productivity up to 1800 tpd as soon as possible after the pit mining is complete.

Goldrea has been actively seeking other properties in China. These efforts have been directed toward properties in production or nearing production or in need of expansions from existing capacity. Field reconnaissance investigations have been completed on a total of thirteen properties. Four of these will require follow up work. These properties include base metals as well as precious metals.

Other properties are coming to our attention on a daily basis due to our aggressive presence in China.

This press release has been reviewed by Norman L. Tribe, P. Eng., a qualified person under NI 43-101.


Larry W. Reaugh, President and Chief Executive Officer

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Goldrea Resources Corp.
    Larry W. Reaugh
    President and Chief Executive Officer
    (604) 531-9639
    (604) 531-9634 (FAX)