Goldrush Resources Ltd.

Goldrush Resources Ltd.

August 21, 2006 09:30 ET

Goldrush Announces Acquisition of Two Strategically Located Exploration Permits Near Essakane Project in Burkina Faso, West Africa

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews – Aug. 21, 2006) - Goldrush Resources Ltd. (TSX VENTURE:GOD) (“Goldrush” or the “Company”) is very pleased to announce the acquisition of two strategically located gold exploration permits in Burkina Faso, West Africa.


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 and Orezone Resources Inc. (“Orezone”) on the Burkina Faso side of the border and Orezone’s Kossa Permit in Niger. (see permit location map at The Falagountou III permit has a surface area of 247 km2 while the Falagountou IV permit has a surface area of 250 km2.

Prior Exploration and Exploration Plans on the Falagountou IV Permit

During the mid 1990’s, a previous explorer conducted extensive soil sampling, trenching and reverse circulation (“RC”) drilling on auriferous showings on the Falagountou IV permit, with the Sofokel-North showing emerging as the main target. When the operator merged with another gold producer, it abandoned all permits in Burkina Faso. The Sofokel-North showing lies in the southeast area of the Falagountou IV permit and has an estimated strike length of 1,500 m. Twenty-six RC drill holes, totaling 2,163 m over 13 100-m spaced sections were drilled in the Sofokel-North showing with the best reported intersections are 2.06 g/t gold over 33 m,1.37 g/t gold over 15 m, 1.81 g/t gold over 6 m, 0.62 g/t gold over 6 m and 0.53 g/t gold over 9 m. There is insufficient information to determine if the reported core length intervals represent true widths. Readers are cautioned that the above information has not been independently verified by Goldrush.

Preliminary exploration by the Company’s geological staff at Sofokel-North led to the discovery of an existing trench and three RC drill hole landmarks. Eighteen samples taken from the trench provided 7 samples which assayed greater than 0.5 g/t gold and an intersect of 6 m averaging 10.58 g/t gold, including 1 m which averaged 47.9 g/t gold.

The Company plans to carry out an aggressive exploration program on the Falagountou IV permit of at least US$260,000 prior to the end of 2006. Depending on exploration results, the Company’s goal is to develop a mineral resource estimate on the permit.

Significant results on adjacent permits

The Falagountou III permit is the only independently controlled permit between the Essakane and Kossa projects and lies within 15 km of the Essakane Main Zone, and within 10 km of the Falagountou target on the west, and within 4 km of Orezone’s Fatatako target area to the northeast. Recently, Orezone reported drilling results at Fatatako including 8 m grading 3.4 g/t gold, 13 m grading 1.5 g/t gold and 10 m grading 2.2 g/t gold, with step outs of 5 m grading 1.74 g/t gold and 4 m grading 2.13 g/t (Source: Orezone News Releases dated April 24 and August 21, 2006). Readers are cautioned that Orezone has indicated that these widths are downhole lengths and are not true widths. Both the Falagountou III and the Falagountou IV permits are situated in the Gorouol Birimian Greenstone Belt, which also hosts both the Essakane and Kossa projects. Orezone has published a JORC compliant gold resource estimate for Essakane which includes 36.8 million tonnes grading 1.6 g/t gold (1.9 million contained ounces) in the “indicated” category and inferred resources of an additional 27.7 million tones grading 1.7 g/t gold (1.5 million contained ounces) based on a 0.5 g/t gold cut-off grade. Orezone has announced that Gold Fields Limited will spend US$9.2 million on further exploration with the intent of producing a bankable feasibility study during 2007 (Source: Orezone News Release dated April 10, 2006). Readers are cautioned that the above information has not been verified by Goldrush and is not necessarily indicative that gold mineralization present on either property continues onto the Falagountou III or IV permits. Goldrush will commence exploration work on Falagountou III during Q4, 2006.

Acquisition terms

The Falagountou III and IV permits have been acquired from a Burkinabe company, Etablissements Sawadogo Mahamadi et Freres (“ESMAF”) through a letter agreement for cash consideration of US$82,500 paid on execution of the agreement and an additional US$82,500 payable after one year. If the Company withdraws from the agreement during the first year, it will make a one time cash payment of approximately US$16,500 on the anniversary date. If an economic body of mineralization is discovered on the permits within two years, the parties have agreed to form a Burkinabe mining company wherein the Company will have an 80% interest and ESMAF and the Burkinabe government each have a 10% carried interest. Goldrush has a right of first refusal to purchase ESMAF’s interest at any time on commercially acceptable terms.

Other Exploration Programs

With the acquisition of these two permits, Goldrush now controls 100% of 27 exploration permits covering approximately 5,100 km2 of prospective geology in Burkina Faso. Rotary Air Blast drilling on the Tougouri and Nomikdou permits and seven reverse circulation drill holes on the Kongoussi 1 permit have been completed; assay results are expected by the end of August. Targets for additional drilling programs are currently being evaluated, and drilling on several other permits is planned before the end of 2006.

Quality Assurance and Quality Control

Rock Sampling

For rock sampling, most samples consist of composite grab samples taken within a 5 metres radius, broken from bedrock with a rock hammer to provide a final weight of 2-3 kilograms. One blank sample, similar in size and appearance to regular samples, and one standard are included in each batch of 20 samples sent to the Abilab laboratory in Bamako, Mali. At Abilab, rock samples are coarsely crushed and up to 1 kilogram is pulverized to a minimum of 95% of the sample passing -200 mesh (with tests on granulometry). Assays are conducted on a 50 grams subsample by fire assay with atomic absorption finish. Internal laboratory QA-QC includes insertion of blanks and standards as well as repeats, which are in part random and in part targeted on higher grade samples. Most samples grading greater than 5 g Au/t gold are also checked on another pulp split by fire assay with a gravimetric finish.

Dr. Jean-Francois Couture P.Geo, Principal Geologist with SRK, is the Qualified Person for the purpose of National Instrument 43-101. Dr. Couture reviewed the technical information contained in this news release.



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 forwardlooking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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