Goldrush Resources Ltd.

Goldrush Resources Ltd.

May 01, 2007 15:44 ET

Goldrush Announces 2006 Year-End Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - Goldrush Resources Ltd. (TSX VENTURE:GOD) -

Highlights of the Year

- acquisition of 33 mineral properties in Burkina Faso, West Africa increases value of mineral property assets from $10,000 to $5.5 million

- $4.2 million in equity funding raised through private placement financings

- $1.9 million in direct exploration conducted on Burkina Faso permits

- $1.6 million in working capital at year-end

- significant exploration programs, including over 13,000 metres of rotary air blast ("RAB") drilling currently underway

Goldrush Resources Ltd. ("Goldrush" or the "Company") is pleased to provide the results of operations and financial condition for the year ending December 31, 2006. This information should be read in conjunction with the Audited Financial Statements for the years ending December 31, 2005 and 2006.

Overall Performance

The Company's net loss for the year ending December 31, 2006 was $332,602 or ($0.01) per share compared with a net loss of $347,121 or ($0.01) per share per share for the same period in 2005. The main contributors to the 2006 loss were, in decreasing order of magnitude, (i) a stock-based compensation expense that relates to the issuance of 1,400,000 stock options to members of the board of directors, officers and key employees ($77,577); (ii) an accretion of debt expense, which relates to the Company's convertible debenture to High River Gold Mines Ltd. ("High River") ($73,882); (iii) shareholder relations ($67,566); (iv) management fees ($60,000); (v) trust and filing fees ($34,164); and (vi) legal and accounting fees ($32,808). All of the expense categories that displayed a year over year increase reflect a much higher level of corporate activity in 2006. These expenses were partially offset by interest income of $65,639 in 2006, compared to interest income of $3,600 in 2005.

The Company had a net working capital of $1,591,873 as at December 31, 2006, as compared to working capital of $38,169 as at December 31, 2005. The Company's increase in working capital is a result of funds received from the exercise of share purchase warrants ($700,000), private placements conducted in 2006 ($3,520,000) and the exercise of options ($10,000). The majority of these funds has been utilized for a series of exploration programs on the Burkina Faso exploration permits and for regulatory, accounting and administrative expenses. In 2006, as the result of the two private placements and the acquisition of the High River permits in Burkina Faso, the Company's total assets increased nearly ten fold, from $75,433 in 2005 to 7,430,590 in 2006 while mineral property assets increased from $10,000 in 2005 to $5,473,263 in 2006. In 2006, $1.9 million in direct exploration was conducted on the Burkina Faso permits.

Fourth Quarter Results

In the three-month period ending December 31, 2006, the Company's income was $341,316 or $0.00 per share, as compared to a loss of $272,414 or $0.02 per share in the three months ended December 31, 2005. The Q4 income amount includes year-end adjustments to accretion expense, stock-based compensation, advertising expense and interest income.

Subsequent Events

Subsequent to the end of the year, the Company closed a non-brokered private placement of 7,000,000 units of its securities for gross proceeds of $1,890,000, and 1,000,000 share purchase warrants and 50,000 stock options were exercised for proceeds of $355,000. These funds, along with cash on hand, will be adequate to cover all of the Company's foreseeable expenses in 2007. The Company's significant accounting policies are set out in Note 2 of the audited consolidated financial statements. The Company's financial statements are prepared in accordance with Canadian Generally Accepted Accounting Principles ("Canadian GAAP"). The Company's reporting currency is the Canadian dollar. Additional information on the Company is available on the Company's website ( and at

Exploration Program Update

In January 2006, the Company acquired 21 exploration permits in Burkina Faso, West Africa from High River. The permits are for gold and related minerals/substances. Subsequent property acquisitions have increased the number of permits controlled to 33 permits covering approximately 5,900 km2 of prospective geology in Burkina Faso. The Company is now conducting a series of exploration programs on these permits. Highlights of exploration results to date include:

1. Ronguen

Ronguen is located on the Kongoussi 1 permit, six kilometres northwest of the High River Bissa Trend gold deposits. On April 11, 2007 Goldrush announced new RAB drill results from Ronguen which included:

- 6.1 g/t Au over 16 metres

- 5.6 g/t Au over 12 metres

- 2.41 g/t Au over 12 metres

- 1.83 g/t Au over 24 metres

- 1.67 g/t Au over 12 metres

- 1.59 g/t Au over 10 metres

- 29.4 g/t Au over 2 metres

(Please refer to Goldrush news releases dated April 11 and 25, 2007 for complete assay results and QA/QC procedures).

These results extended the gold mineralization system to 1,300 metres, with the zone still open to the west beyond the first grid, onto the adjoining Tikare permit held by Goldrush. On April 20, the Company commenced a 3,480 metre RAB drilling program to:

(i) test the zone of gold mineralization farther to the west (2,430 metres of drilling);

(ii) test the connection between two gold intersections on the eastern part of the new grid (400 metres);

(iii) test behind RAB hole KGRB06-001B that returned 7.95 g/t Au over 2 metres from the mottled zone (50 metres); and

(iv) test the extension of the gold zone to the east on line 1300E of the old grid (600 metres).

Following the receipt of the RAB results, a 3,000 metre reverse circulation ("RC") drilling program is planned from the current westernmost RAB fence to the location of RC hole KGRR06-002, 900 metres to the east. These holes, to be drilled on 80 metre spaced sections, will test the continuity of the mineralization which was identified in the widely spaced RAB fences. In addition, the program will include 250 metres of diamond drilling to better define the lithologic relationships and the structure, and to obtain preliminary geotechnical information.

2. Falagountou III and IV

The Falagountou III and IV permits are located in northeastern Burkina Faso on the Burkina Faso-Niger border and lie adjacent to and between the Essakane Gold Project of Gold Fields Limited ("Gold Fields") and Orezone Resources Inc. ("Orezone") on the Burkina Faso side of the border and Orezone's Kossa Permit in Niger (See permit location map and Goldrush news release dated August 21, 2006). On April 10, 2007, Orezone announced a National Instrument 43-101 compliant resource estimate for the Essakane Main Zone of 68.7 million tonnes grading 1.6 g/t gold (3.4 million ounces) in the Indicated category and 23.5 million tonnes grading 1.5 g/t gold (1.1 million ounces) in the Inferred category. Orezone also noted that Gold Fields would be completing a full feasibility study for Essakane in Q3, 2007, followed by a production decision (See Orezone news release dated April 10, 2007 for further information).

The Sofokel North prospect lies in the southeastern portion of the Falagountou IV permit. A four hole, 418.5 metre diamond drilling program was conducted to confirm and extend significant drill results from previous work by Santa Fe Mining Inc. (see Goldrush News Releases dated October 20, 2006 and January 15, 2007). Assay highlights included:

- 2.66 g/t Au over 6.7 metres

- 2.25 g/t Au over 5.65 metres

- 2.39 g/t Au over 2.1 metres

- 1.9 g/t Au over 30.5 metres

Goldrush is about to embark on a 10,000 metre RAB drilling program to follow-up on:

(i) promising diamond drill results from the Sofokel North target on Falagountou IV; and

(ii) promising soil sampling results on Falagountou III.

3. Hounde Greenstone Belt

Goldrush owns eight Hounde Group exploration permits that are located approximately 280 kilometres southwest of the capital city of Ouagadougou in the southern portion of the Hounde greenstone belt and along the regional Hounde-Ouahigouya shear zone. Before this year, no reconnaissance exploration work had been conducted on the Bangbara permit and none of the Hounde Group exploration permits had been investigated by drilling.

A 10,460 metre RAB drilling program on the Olongo, Bangbara and Loropeni permits which was initiated on February 28 was completed on April 28. No assays have been received to date. The RAB program will assist in the definition of the newly discovered, northerly trending, 5 kilometre long and 2.5 kilometre wide gold-bearing corridor on the Olongo and Bangbara permits (see Goldrush news release dated November 01, 2006), and will investigate the favourable geophysical signatures and gold-bearing rock samples found on the Loropeni permit.

About Goldrush: Goldrush is a mineral resource exploration company focused on gold exploration in Burkina Faso, West Africa with an established organization of people and projects to enable aggressive growth.

For further information on Goldrush Resources Ltd., shareholders are invited to visit the Company's website at



Len Brownlie - President

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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

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