Goldrea Resources Corp.

Goldrea Resources Corp.

March 21, 2007 06:00 ET

Goldrea Update on Daye Mine Acquisition and Historical Review

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2007) -

Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) reports on recent events and a historical review of the Daye Gold Mine Project located near Rushan City, Shandong Province China.

Historical Review: The Daye Gold Mine is an operating 1750 TPD gold mine which produced approximately 65,000 ounces per year from their open pit operation. Currently, it is operating from lower grade sections of the open pit and from one shaft and a decline mining down to the 150 meter level below the open pit. The co-operative joint venture outlines Goldrea's ability to earn a 74% interest in the lease surrounding the Daye open pit as well as all mineral rights 150 meters below the top of the existing open pit for the expenditure of CDN$2,000,000 over four years. Currently, the company has also entered into an agreement to purchase 80% of the Daye Mine operation for CDN$16,342,857.14 (see November 10, 2006).

Review as follows:

March 16, 2007: Paul Blair, Chief Operating Officer, is appointed to the Board of Directors. Paul has over 40 years experience operating and managing mining operations in the U.S.A., South America and China.

January 19, 2007: Norm Tribe, P. Eng. Prepares a NI 43-101 resource study as follows:

Indicated resource 5,184,124 tonnes 1.999 331,175
Inferred 4,313,424 tonnes 1.999 275,968

Expenses to date are approximately CDN$1.8 million and includes trenching, geochemical and geophysical surveys, mapping, drilling of 20,000 meters (66,000 feet in 87 holes) and the sinking of 200 meters (666 feet) of a 5 compartment concrete lined shaft designed for an ultimate depth of 254 meters (833 feet). It is expected that Goldrea will have earned its 74% interest in the Daye exploration and surrounding leases by the end of the first quarter. The owners are expected to revert to a 90% interest.

November 10, 2006: The Company entered into an agreement to purchase the Daye mine operation over a period of five years for CDN$16,342,000. The Agreement was approved by Rushan City and the Provincial Government but recent Central Government changes have reduced the time for a foreign purchase to one year. New negotiations with Rushan have been satisfactorily concluded on a new proposal of cash and shares with a buyback of its shares over a four year period. The Company is currently drafting up the agreements and will be submitting them to the Central Government within two weeks.

If everything is satisfactory to the Central Government then the Company will seek regulatory approval with possession of the mine operation by late July 2007.

October 26, 2006: Goldrea and Tortuga outline a strategic plan to build gold production through further acquisition of gold producers in China.

July 6, 2006: Goldrea completes negotiations on a Joint Venture (J.V.) Agreement (The Weihai Agreement) with China Shandong No. 3 Mineral and Geological Exploration Institute (3rd Brigade). Goldrea Resources Corp. agrees to spend Y 14M (CDN$1.4M) over four years to earn a 70% interest in the J.V. The Weihai Agreement includes eight exploration licenses covering 90 square kilometers south and west of the existing licenses held by the Rushan Goldrea Gold Corp. This new agreement will extend the exploration rights from the existing Daye J.V. licenses to the south along the Daye Mineral Zone. Drilling by the 3rd Brigade returned up to 4.24 g/t over 9 meters positioned approximately 200 meters to the south of Goldrea's drilling.

June 2, 2006: New gold zone discovered. Drilling on the Daye property has intersected mineralization on a new shoot at the western end of the Daye structure. Four drill holes have intersected this new zone, the Jingkou Zone, and confirm the existence of a definable mineralized zone. The most significant result for the mineralized section in hole #ZK-722 was 2.26 g/t gold over 5.81 meters.

May 23, 2006: Wardrop Engineering was awarded the contract to evaluate (NI 43-101) the Daye Gold Mine, owned by Rushan City, Shandong Province China, by Goldrea Resources. Wardrop is a full service engineering company with 50 years of successful history serving the Canadian Mining industry. The Daye Mine is an operating gold mining and milling operation located within the boundaries of Rushan City. This report has been received and is a "Confidential Internal Report".

May 1, 2006: A 300 meter shaft has commenced on the down dip extensions of the Daye ore body now generally referred to as the Shinjia Zone. The five compartment concrete-lined shaft is 3.5 meters in diameter. It will contain compartments for a two level tandem cage, a counter weight, a manway, a pipeway and an airway.

March 23, 2006: Trenching on the West Tianjae zone returns up to 2.66 g/t gold over 8 meters in trench #TC-27-1E.

February 12, 2006: A "Mineral Resource Evaluation Report" qualifying under NI 43-101 was completed by N. Tribe, P. Eng. and submitted to the Company in January. Resource estimates address mineral values in sericite as well as in gold. The deposit is estimated to contain 147 million tones of sericite resources at a grade of 20% sericite, as indicated by the drilling completed to date. The Daye Gold Mine has a contract to sell their sericite product into the plastics industry at USD$185.50 per tonne and is working to expand these contracts to accommodate the full production from the plant. Although accurate assaying methods are not available for measuring sericite, the past experience of the local geologists based on visual estimates and the recoveries of the sericite in the plant, puts the percentage of sericite in the deposits at 20% sericite. These values have been consistent throughout those portions of the deposit mined to date. The gold values are less consistent than the sericite and a higher density of drilling will be required to define the gold bearing portions of the deposits well enough to design a mining plan based on which parts of the breccia contain the best values in gold. The inferred resource estimate for the gold mineralization based on wide spaced drill holes put tonnage at 920,600 tonnes at 2.74 grams per tonne gold.

January 12, 2006: A Letter of Intent with Rushan City has been entered into with Goldrea Resources to purchase up to a 100% interest in their operating 1750 TPD Daye gold mine located approximately 30 km northwest of Rushan City, Shandong Province, China.

October 11, 2005: Drilling down dip from the Daye open pit mine returns up to 4.09 g/t gold over 5 meters in hole #G2K-800 located 500 meters southeast of the known mineralization.

March 4, 2005: Exploration down dip from the Daye Open Pit returns up to 8.26 g/t gold over 4 meters.

January 17, 2005: Diamond drilling commences on Daye Mine Option.

September 17, 2004: Business license issued from Rushan City to Goldrea Resources Corp.

February 19, 2004: NI 43-101 Report prepared by Norm Tribe, P. Eng. approved the exploration potential of the Daye Mine Option.

January 6, 2004: Daye Property Assignment Agreement completed for the issue of 5,000,000 shares and a CDN$2,000,000 work commitment.

December 1, 2003: Goldrea enters into Letter of Intent to acquire MSC Pioneer Holdings, Ltd. interest in Daye Gold Mine Joint Venture.

Further news will be reported as it is received.

On Behalf of Management


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)