Goldrush Resources Ltd.
TSX VENTURE : GOD

Goldrush Resources Ltd.

April 30, 2008 14:29 ET

Goldrush Announces 2007 Year End Results, Updates Exploration Activities at Ronguen Gold Deposit and Other Burkina Faso Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2008) - Goldrush Resources Ltd. (TSX VENTURE:GOD) ("Goldrush" or the "Company") is pleased to provide the results of operations and financial condition for the year ending December 31, 2007. This information should be read in conjunction with the Audited Financial Statements for the years ending December 31, 2006 and 2007.

2007 Exploration Highlights

- Successfully delineated an initial inferred gold resource of 249,000 ounces (5.9 million tonnes at 1.31 g/t gold) at the Ronguen gold deposit

- $3.7 million in exploration expenditures on Burkina Faso permits

Financial Results

- Working capital increased to $2,225,854 at December 31, 2007, as compared to $1,591,873 at December 31, 2006

- Net loss was ($585,688) or ($0.01) per share in 2007 as compared to a net loss of ($332,602) or ($0.01) per share in 2006

- $4.8 million in equity funding raised through private placement financings and warrant exercise

- Carrying value of mineral property assets increased from $5.5 to 9.3 million

Overall Performance

The Company's net loss for the year ended December 31, 2007 was ($585,688) or ($0.01) per share compared with a net loss of ($332,602) or ($0.01) per share for the same period in 2006. The main contributors to the 2007 loss were, in order of magnitude, (i) a stock-based compensation expense that relates to the issuance of 1,670,000 stock options to members of the board of directors, officers and key employees ($188,532 in 2007 vs. $77,577 in 2006); (ii) shareholder relations and advertising ($163,486 in 2007 vs. $67,566 in 2006); (iii) an accretion of debt expense, which relates to the Company's convertible debenture to High River Gold Mines Ltd. ($89,000 in 2007 vs. $73,882 in 2006); (iv) management fees ($69,000 in 2007 vs. $60,000 in 2006); (v) legal and accounting expenses ($52,529 in 2007 vs. $32,808 in 2006); and (vi) travel ($30,304 in 2007 vs. $22,540 in 2006). In addition, consulting fees ($20,813) and office rent ($26,250) were new expense categories for the Company. Increased 2007 expenses in the shareholder communications and advertising and travel categories relate to greater efforts made by management to communicate the results of our exploration programs with shareholders and interested investors through face to face meetings, advertisements in industry journals, attendance at trade shows and production of a web based video. These increased expenses were partially offset by the sale of a mineral property ($36,000), reduced trust and filing fee expenses ($22,492 in 2007 vs. $34,164 in 2006), and increased interest income ($98,106 in 2007 vs. $65,639 in 2006).

The Company had net working capital of $2,225,854 at December 31, 2007, as compared to a working capital of $1,591,873 at December 31, 2006. The Company's increase in working capital is a result of funds received from the exercise of share purchase warrants ($2,844,850), private placements conducted in 2007 ($1,921,000) and the exercise of options ($50,000). 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 2007, as the result of funds raised and deferred exploration expenditures, the Company's total assets increased by 60.6%, from $7,430,590 in 2006 to $11,931,865 while mineral property assets increased from $5,473,263 in 2006 to $9,325,169 in 2007. In 2007, $3.7 million in direct exploration was conducted on the Burkina Faso permits.

Fourth Quarter Results

In the three month period ending December 31, 2007, the Company's loss was $123,545 or ($0.00) per share, as compared to income of $341,316 or $0.00 per share in the three months ended December 31, 2006. The Q4 loss includes year-end adjustments to accretion expense, stock-based compensation, advertising expense and interest income.

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 (www.goldrushresources.ca) and at www.sedar.com.

Exploration Program Update

Ronguen Gold Deposit

On April 9, 2008, the Company received an initial inferred mineral resource estimate of 5.9 million tonnes grading an average of 1.31 gpt gold, using a cutoff grade of 0.5 gpt gold, for a total of 249,000 ounces for the Company's flagship Ronguen gold deposit. Ronguen is located on Goldrush's Kongoussi 1 and Tikare permits in Burkina Faso, West Africa, 80 km north of the capital city of Ouagadougou, and only 6 km northwest of High River Gold Mines Ltd.' s ("High River") sizable(1) Bissa gold deposit.

The resource estimate prepared by SRK Consulting (Canada) Inc. ("SRK") included recommendations for an additional 10,000 metres of core drilling to expand the deposit at depth and along strike to the east. The Company has commenced an initial drilling program of up to 5,000 metres, to be followed by additional drilling later in the year.

Taparko Group Permits

The Taparko group consists of thirteen permits (Taranga, Tougouri, Nomikdou, Doumissi, Ninnougou, Dyakolra, Karga, Bougou I, Wole, Birgui, Kirsiri, Tanpelren and Ouavousse) that have a combined surface area of 1,941 sq. km. The Taparko permits are located approximately 200 km by paved highway northeast of Ouagadougou, with four permits sharing a contiguous boundary with High River's Taparko-Bouroum mine.

On the Dyakolra permit, regional geological mapping over an area of 213 sq. km and channel sampling (23 channels totalling 321.5 metres and yielding 179 channel samples) were completed in February 2008, and a 3,600 m RAB drill program (86 holes with an average length of 42 metres) was recently completed. Although no assays have been received from this program, drilling on section 850S has intersected a quartz vein over a horizontal distance of 250 metres from line 900E to line 650E. As the RAB drilling has been conducted in an area proximal to the western border of the contiguous Taranga permit, further exploration on Taranga will proceed once the results of the Dyakolra drilling have been received.

In early 2008, Goldrush's geological staff identified two high priority targets on the Ouavousse permit which will require drill follow-up in 2008. A trench excavated in 1997 that had previously returned a grade of 1.77 g/t gold over 4 metres was rehabilitated and resampled to provide an assay of 1.58 g/t gold over 5 metres, including 5.53 g/t gold over 1 m. No outcrop was located along the strike of the trench for approximately 800 m to the northeast and for several km to the southwest. Rock sampling conducted on available outcrops in the area provided encouraging results. In total, 20 of 817 rock samples assayed above 1 g/t gold, to a maximum of 9.25 g/t gold.

On the Wole permit, a two hole RC drill program conducted in late 2006 intersected 6 metres of 2.64 g/t gold and 1 metre of 5.95 g/t gold. A follow-up program consisting of three RC drill holes is currently underway.

Bissa Group

The Bissa group consists of two permits (Salbo and Yake) that have a combined surface area of 417 sq. km. The Bissa group permits are located 60 km by paved highway north of Ouagadougou and adjoin the southern border of High River's Bissa project. Recently, regional geological mapping at 1:20,000 scale has been conducted over essentially the entire permits area, and extensive rock sampling has provided several targets for follow-up work. On the Yake permit, of 154 rock assays received to date, 4 assays returned greater than 1 g/t gold, to a maximum of 17.2 g/t gold. On the Salbo permit, of 180 rock assay results received to date, 13 assays returned greater than 1 g/t gold, to a maximum of 13.8 g/t gold. Eleven of the high grade rock samples were collected near an artisanal site near the center of the permit. Follow-up work programs will be developed once all current data have been assembled and interpreted.

Quality Assurance and Quality Control

Goldrush follows a strict sampling and QA-QC protocol. Details of this program for diamond drilling are provided in the Goldrush news release dated January 15, 2007.

Mr. Driffield Cameron, P. Geo., Director of Goldrush, is the Qualified Person for this press release for the purposes of National Instrument 43-101 and has reviewed the information herein.

Exhibition at New York Hard Assets Conference

Goldrush will be exhibiting at the New York Hard Assets Conference on May 12 and 13, 2008 at the New York Marriott Marquis. Shareholders are invited to attend the Company's booth at this conference to meet with management and to discuss the Company's 2008 exploration plans.

About Goldrush: Goldrush is a mineral exploration company focused on gold exploration in Burkina Faso, West Africa with an established organization of people and projects to enable aggressive growth. Through a strategic partnership with High River Gold Mines Ltd., Goldrush has the ability to access High River's processing facilities and infrastructure without incurring all the capital costs associated with developing a stand-alone operation, thereby enhancing the economics of gold deposits within trucking distance of the processing facility.

For further information on Goldrush Resources Ltd., shareholders and other interested parties are invited to visit the Company's website at www.goldrushresources.ca.

ON BEHALF OF THE BOARD OF DIRECTORS,

GOLDRUSH RESOURCES LTD.

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.

(1)The current resource at Bissa consists of 81,980 measured ounces of gold (753,000 tonnes averaging 3.39 g Au/t); 580,270 indicated ounces of gold (11,253,000 tonnes averaging 1.60 g Au/t) and 679,470 inferred ounces of gold (16,394,000 tonnes averaging 1.29 g Au/t) (see High River news release dated July 12, 2007). (Readers are cautioned that the Company has not independently verified the Bissa resource estimate and that the presence of a gold resource at Bissa is not necessarily indicative that gold mineralization present on the Bissa property continues into Kongoussi 1).

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

Contact Information

  • Goldrush Resources Ltd.
    Don Willoughby
    Vice-President Corporate Development
    (416) 607-7347
    or
    Goldrush Resources Ltd.
    Len Brownlie
    President
    (604) 602-9973
    (604) 681-5910 (FAX)
    or
    Goldrush Resources Ltd.
    Investor Relations
    Email: info@goldrushresources.ca
    Website: www.goldrushresources.ca