Goldrea Resources Corp.

Goldrea Resources Corp.

November 15, 2010 06:01 ET

Goldrea Resources Corp.: New Zone Encountered at Level Three From Golden Rose Shaft

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2010) - Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) ("Goldrea" or the "Company") is pleased to announce that a new previously unknown ore zone has been encountered at the Company's Golden Rose Mine near Rushan, Shandong Province, China. 

This zone was encountered in the foot wall of the main structure on the western extremities of 3 Level (- 100 m MSL), and was not identified by surface drilling. It appears to continue to the west and south, and exhibits a true thickness of approximately 3 to 4 meters. Lateral extent is unknown at this time. To date, the mineralization is exposed for 18 m (59 ft) along the West Drift I, and for 13 m (43 ft) along the West 22 and West 23 Crosscuts. Further results will be released when drifting and assaying is completed.

Grades reported to date include:

Level 3*   Total Sample Length Assay g/t   Assay oz/t
(m) (ft)      
West 21 Crosscut   9.5 31.2 1.83   0.05
includes   2.0 6.6 4.90   0.14
West 22 Crosscut   4.0 13.1 2.40   0.07
West 23 Crosscut   4.0 13.1 1.38   0.04
West Drift I   12.0 39.4 2.50   0.07
includes   6.0 19.7 3.33   0.10
*Note that oz/t is troy ounces per short ton (2,000 lbs (avp)); all other units are metric unless specified otherwise. Assays were done in the Daye Mine Laboratory by standard Chinese assaying methods. Goldrea has verified that these assays agree closely with assays run by Canadian labs.

Ongoing Development at Golden Rose

As of October 1, 2010, in excess of 5,375 meters (17,634 feet) of lateral development has been completed on five levels from the 235 meter (771 feet) deep exploratory shaft.

Golden Rose is now producing from three stopes with two more under development. Ore is being stockpiled at the Daye Mill. The stockpile now contains 11,325 tonnes (12,484 tn), grading 1.37 grams/tonne (0.04 ozt/tn). When the stockpile accumulates 20,000 tonnes, it will be milled as a continuation of the metallurgical testing program. Laboratory work at the Inspectorate Labs in Richmond, BC indicates that recovery of 90% can be expected.

Meanwhile, planning is in progress to sink the Golden Phoenix Shaft, which will be capable of hoisting 1,500 tonnes/day.

Ludi Joint Venture

Concurrently, planning is ongoing to commission an Induced Potential (IP) Survey with a subsequent drilling program on the Ludi Joint Venture. Ludi contains 83 square kilometers (32 square miles) on the same structure and contiguous to and down dip from the Golden Rose Mine.

This news release was reviewed by Paul L. Blair, a Qualified Person recognized under NI 43-101.

China Due Diligence:

The due diligence of the company's assets, in regard to the proposed financing of up to $16.5 million, was conducted over the week of October 22 - 31, 2010. The group representing the European fund was satisfied with the Company's progress and representations. The Company expects feedback from the groups later this week.

About Goldrea Resources Corp.:

Goldrea Resources Corp. is a mineral exploration and development company that is engaged in the acquisition, exploration and development of mineral properties in North American and China.


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 TSX-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