VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - Larry W. Reaugh, President & Chief Executive Officer of Goldrea Resources Corp. (TSX VENTURE:GOR)(PINK SHEETS:GORAF)(FRANKFURT:GOJ) ("Goldrea" or the "Company") announces that the Golden Rose Mine in Shandong, China, produced 1,289 tonnes at an average grade of 2.23 grams per tonne during the month of June, which is 0.20 grams per tonne higher than the revised NI 43-101 Indicated Mineral Resource Estimate published in May 2010. This NI 43-101 showed an indicated mineral resource of 2.67 million tonnes at 2.03 grams per tonne and included 10% dilution; it was based on data from 169 diamond drill holes totaling over 50,115 meters (164,400 ft).
A test lot of nearly 22,000 tonnes was milled in November 2009. Although recovery was low (70.2%), subsequent test work in Canada indicated that recovery could be raised above 90% by a simple change to the flotation reagents. The current stockpile at the Daye Mill now contains over 25,591 tonnes, and will be milled when a 30 day run of approximately 60,000 tonnes are accumulated. This will allow the milling operation to better control recoveries and maximize the treatment of the underground resource.
The 3.5 meter (11.5 ft) diameter Golden Rose Shaft was sunk to 235 meters (771 ft), furnished and readied for development by January 2008. It is intended to be for initial exploration and to extract mineralized rock for metallurgical testing in the nearby Daye Mill. As the operation develops, it will be used for ventilation and a second entryway to the underground. Since then, over 7,000 meters (22,977 ft) of lateral development has been completed on 5 levels and 4 stopes have been developed. Future plans include the sinking of the Golden Phoenix Shaft, a production shaft capable of hoisting 1,500 tonnes per day. This will allow the Golden Rose to be used for ventilation and perhaps movement of employees and supplies.
Board of Directors:
The Company has accepted the resignation of John A. Chapman from the Board of Directors. Mr. Chapman has been a board member since December, 1998 and the Company thanks him for his valuable contribution and wishes him success in future endeavors.
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.
This document was reviewed by Paul L. Blair, Chief Operating Officer, and a "Qualified Person" as defined by NI 43-101.
GOLDREA RESOURCES CORP.
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:
Larry W. Reaugh
President and Chief Executive Officer
604-531-9639
604-531-9634 (FAX)
info@goldrea.com
www.goldrea.com