Goldrea Resources Corp.

Goldrea Resources Corp.

March 18, 2009 06:00 ET

Goldrea to Advance Gold Projects/2008 Company Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2009) - Larry W. Reaugh, President & Chief Executive Officer of Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) (the "Company" or "Goldrea"), is pleased to announce proposed gold exploration in China, British Columbia and Arizona.

Shandong Province China

Goldrea proposes a two pronged exploration and development program for the Daye Gold Mine/Rushan City gold project in Shandong Province, China. Chief Operating Officer and Director, Paul Blair is consulting with Norm Tribe, P.Eng, the Company's consulting geologist, and they are currently in China developing a program to facilitate the mining of 100 - 200 TPD from the Golden Rose shaft as well as to continue the development of mineral up and downdip from the shaft. Mined material will be stockpiled until it reaches 20,000 tonnes and then be processed at the Daye Mine. In excess of 12,000 tonnes is currently stockpiled from mineralized cross-cuts developed underground. The plan of operation will be reported once development plans are finalized. As reported in the February 6, 2009 press release 2,533 meters (8,308 ft) of lateral, raises and cross-cuts have been completed. Cross-cuts assayed up to 19 meters of 5.0 grams/tonne gold (62.3 ft of 0.146 oz/ton Au).

The Company will begin diamond drilling on the Ludi (a.k.a. Weihai Joint Venture) located south of the Golden Rose shaft. Diamond drill hole #ZK904 drilled by the Third Brigade in 2006 on the Ludi Joint Venture ground returned up to 4.24 g/t gold (0.124 oz) over 9 meters (29.5 ft) 200 meters south of the Golden Rose shaft.

Arizona - (Gold Rush and Gold Chain Claims)

The Company is initiating a study to apply for permits for drilling on their Gold Rush and Gold Chain gold properties located in Mohave County, Arizona, USA.

The Gold Rush property currently has a historical resource in excess of (i)40,000 ounces of gold, (1.3 million tons of 1.03 g/t Au) (0.032 oz/ton gold) which is delineated by Western States the previous operator. This gold resource occupies a prominent detachment fault within Precambrian rocks, which are overlain by silicified, brecciated, volcanic dome features of Tertiary Age.

The Gold Rush Claims straddle the Roadside Detachment Fault and trend northward toward the Company's Gold Chain property, which is situated approximately one mile to the north, and which is also located upon the same "detachment structure". Anaconda postulated a historical resource of 3.2 million tons of 0.482 g/t Au (0.015 oz/ton Au) (i)(48,000 oz) maybe present, the Gold Chain resource is open in all directions. The Gold Chain estimate was based upon surface and underground samples and intercepts from four drill holes. Intercepts range from 35 feet of 0.064 oz/ton gold to 195 feet of 0.010 oz/ton gold.

(i) Where historical estimates are referred to, the Company has no classification of the resource or reserve, and the Company has not obtained enough of the original data and has not done the work necessary to verify the classification of a resource or reserve. The Company is not treating the estimates as a NI 43-101 defined resource or reserve verified by a Qualified Person and the historical estimate should not be relied upon.

British Columbia - Flap Gold Property (50% Goldrea / 50% Molycor)

The Company plans approximately 6 - 10 reverse circulation drill holes on the Flap stockwork gold zone measuring 300 x 200 meters (885 ft x 666 ft). Earlier drilling and trenching by Rea Gold Corp. returned up to 76.73 grams/tonne Au (2.25 opt Au) over 1 meter (3.3 ft) in diamond drilling and 17.8 - 25.6 grams Au/t (0.5 - 0.75 opt Au) in chip samples from the surface (reported by Gary Medford PhD/Rea Gold Corp. ("Rea") Feb 18, 1989). The diamond drill program by Rea was biased negatively due to the nugget effect in the mineralization. Subsequent surface trenching by the Molycor/Goldrea Joint Venture returned up to 3.10 g/t (0.091 opt Au) over 6 meters (19.7 ft). The Company expects larger diameter reverse circulation drill holes will better define the distribution of gold in the system and may partially reduce the nugget effect allowing the companies to better evaluate the gold bearing stockwork.


China (Gold) - Daye Gold Claims Shandong Province

Beginning in 2004 the major focus of the Company has been on exploration along strike and downdip of the Daye Mine in Shandong Province China. The Company has completed 60,000 meters (197,000 ft) of diamond drilling, sinking a five (5) compartment concrete shaft to 254 meters (853 ft) and 1.5 miles (2.4 km) of underground development in laterals, cross-cut and raises. Development material from the cross-cuts totaling 12,000 tonnes is being stockpiled and once the stockpile reaches 20,000 tonnes it will be milled at the Daye 1850 TPD mill facility within the property. The Company has negotiated an agreement with the Daye Mine to operate and develop the ore at the Golden Rose shaft and to repay the Company from the stockpile.

An NI 43-101 Indicated Resource has been calculated by N. Tribe & Associates Ltd. of 2.67 million tonnes at a grade of 2.03 g/tonne gold with a NPV of $12.73 million based on the current gold price of $900.00/ounce. The Company is currently exploring and blocking out resources on the Ludi Joint Venture with access from the Golden Rose shaft. The Ludi Joint Venture entails 90 square kilometers south of our current resources and is an earn-in from the Third Brigade.

Goldrea terminated its agreement to acquire the Daye Gold Mine on September 11, 2008 as no end was in site for the Central Government approval. The Company completed the first negotiations to acquire the Daye Mine on January 12, 2006 and worked diligently to complete the acquisition over the next 32 months.

Empress Molybdenum Discovery (50/50 Joint Venture with Molycor Gold Corp.)

Drilling of 19 BQTW diamond drill holes (3,493 meters) (11.470 ft) was completed on a high grade near surface molybdenum discovery near Summerland, British Columbia. N. Tribe & Associates Ltd. completed a NI 43-101 resource study in November, 2008. The results are as follows:

0.02% Mo cut-off 0.05% Mo Cut-off
Indicated 3,996,155 tonnes @ 0.0605% Mo 1,703,000 tonnes @ 0.094% Mo
Inferred 3,498,000 tonnes @ 0.0619% Mo 1,657,498 tonnes @ 0.094% Mo

The deposit is open to the northeast, to the southwest and at depth. Once molybdenum prices begin to rise the companies will commence further exploration on the property.

Raglan Copper/Nickel/Platinum/Palladium Project

Goldrea has terminated its claim block in the Raglan area as a result of the inconclusive results obtained by their Joint Venture partner Volcanic Metals Corporation.

British Columbia Exploration Properties

British Columbia Dobbin I Platinum/Palladium/Copper Claims (50/50 Joint Venture with Molycor Gold Corp.): Significant Copper/platinum and palladium mineralization has been encountered by the joint venture companies on three separate drill programs beginning in 1997. The programs entailing 28 drill holes returned significant values of platinum (Pt), palladium (Pd), copper (Cu) with Hole # 97-21 having up to 2.265 grams/tonne combined Pt - Pd and 0.54% copper over 15 meters (49.2 ft) and 0.841 grams Pt + Pd and 0.19% Cu over 105 meters (344.4 ft). The drill program encompassed three zones, the Central (22 holes), Kenny 2000 (2 holes) and North Zone (4 holes). The best results were obtained in the Central Zone as above. The Dobbin II claims are contiguous to the Flap claims on the north west and the Dobbin I claims on their southern boundary.

British Columbia Dobbin II/Tadpole Lake Molybdenum Claims (50/50 Joint Venture with Molycor Gold Corp.): The Tadpole Lake Molybdenum property was held by Cominco from 1977 - 1997. Cominco carried out three separate drill programs completing 73 percussion drill holes totaling 3,800 meters (19,026 ft). The Dobbin II claims are contiguous to the Flap claims on the north west and the Dobbin I claims on their southern boundary. The property hosts a quartz stockwork zone measuring 1,000 x 1,500 meters (3,300 x 4,900 ft). The Cominco drilling returned up to 0.063% Mo over 56 meters (184 ft). Molycor and Goldrea completed 1,146 meters (3,758 ft) in ten diamond drill holes returning values of 0.408% Mo over 3.3 meters (10ft). The claims including, Dobbin I, II and Flap are in good standing until December, 2016.

British Columbia Crowrea Molybdenum Project (50/50 Joint Venture with Molycor Gold Corp.): High Grade molybdenum was discovered by the Joint Venture companies in 1995. Subsequent drilling in 1995, 1996 and 2005 returned 4.6 meters (15 ft) grading 2.83% Mo in Hole #96-14-56, 39.02 meters (128 ft) grading 0.164% Mo in Hole # 95-3-9 and 10.60 meters (35 ft) grading 0.282% Mo. The Crowrea project is located 8,000 meters (12,800 ft) east of the Empress Project within the same claim block.

This news release was reviewed by Norm Tribe, P.Eng., a Qualified Person recognized 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 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

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