Goldrush Resources Ltd.

Goldrush Resources Ltd.

October 20, 2010 16:43 ET

Goldrush Closes $4,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) - Goldrush Resources Ltd. (TSX VENTURE:GOD) (Goldrush or the "Company") and President & CEO Len Brownlie, Ph.D are pleased to announce that Goldrush has closed the non-brokered private placement (the "Financing") first announced on September 24, 2010 of 40,000,000 common shares at a purchase price of $0.10 per share for gross proceeds of $4,000,000. All securities issued pursuant to the Financing are subject to a 4 month statutory hold period which expires on February 19, 2011. Following completion of the Financing Goldrush will have a total of 113,060,352 common shares issued and outstanding.

The net proceeds of the Financing will be used: (i) to fund continued drilling on the Company's Ronguen gold deposit in Burkina Faso, West Africa; (ii) to acquire additional properties; and (iii) for working capital purposes.

Finder's fees totalling $231,000 in cash and 2,310,000 2010B warrants have been paid in connection with part of the Financing. The 2010B warrants entitle the holder to purchase one additional share at a price of $0.13 until October 19, 2011.

In early 2008, an initial mineral resource evaluation prepared by SRK Consulting (Canada) estimated that the Ronguen Main Zone contains 5.90 million tonnes grading an average of 1.3 grams of gold per tonne or 249,000 ounces of gold in the Inferred category (Source: Goldrush news release, April 29, 2008). The mineral resource statement was reported at a cut-off grade of 0.5 gram of gold per tonne, assuming a gold price of US$685 per ounce of gold, 100 percent metal recovery and US$11 per tonne in mining and processing costs.

As noted in the Company's press release of September 16, 2010, Phase 2 of Goldrush's 2010 Ronguen drill program, consisting of 37 reverse circulation drill holes totaling approximately 3,300 metres and three trenches aggregating 360 metres, is nearing completion and assay results will be announced in the near future. This deeper drilling is similar in approach to the Phase 1 drill program and will provide additional results from nine drill sections. Details of the full scope of the exploration planned for the Ronguen deposit during 2010 were announced in the Company's news releases dated June 1 and 7, 2010 which can be found on the Company's website at An updated mineral resource estimate is planned once the fall 2010 drilling and trenching program is completed and analyzed.

Exhibition at the Money Talks Precious Metals Conference

Goldrush Resources Ltd. will be exhibiting at the Money Talks Precious Metals Conference, October 23, 2010 at the Sheraton Vancouver Wall Centre Hotel. Shareholders are invited to attend the conference and to meet with the Company's management at booth #25.

Quality Assurance/Quality Control

Mr. Driffield Cameron, P. Geo., a Director of Goldrush, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained herein.

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


Len Brownlie – President and Chief Executive Officer

About Goldrush:

Goldrush is a mineral exploration company focused on gold exploration in West Africa.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information