Goldrush Resources Ltd.
TSX VENTURE : GOD

Goldrush Resources Ltd.

October 25, 2010 10:25 ET

Goldrush Intersects 7.63g/t Gold Over 15 Metres and 3.17g/t Gold Over 22 Metres at Ronguen

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - Goldrush Resources Ltd. (TSX VENTURE:GOD) (Goldrush or the "Company") President & CEO Len Brownlie, Ph.D is pleased to report the first assay results from the Phase 2 Reverse Circulation ("RC") drilling and trenching program on the Company's Ronguen Gold Deposit in Burkina Faso, West Africa. The highlight of the drilling results is RC hole KGRR010-096 which encountered multiple intersections of visible gold mineralization, including 7.63 g/t gold over 15 metres and 3.17 g/t gold over 22 metres. Hole KGRR010-096 is located on the eastern grid (G1) on section 970E, near the northern limit of the current grid system. Based on visual observations at the time of drilling, the decision was made to immediately follow-up this hole with a second hole (KGRR010-099) located approximately 22.5 metres farther north on the same drill section. Assays for hole KGRR010-099 are pending. Assays have also been received from another five holes on the G1 grid. Assay highlights from these holes include:

  • 1.0 g/t gold over 25 metres (including 2.15 g/t gold over 3 metres and
    1.57 g/t gold over 8 metres) in hole KGR010-070
  • 1.02 g/t gold over 17 metres in hole KGRR010-077

The Phase 2 drill program included 37 reverse circulation ("RC") drill holes totaling 3,396 metres and 3 trenches totaling 360 metres. Details of Phase 2 are as follows:

  • 12 RC holes totaling 1,518 metres in the Ronguen Main Zone to complement the Phase 1 core drilling and extend the deposit to a depth of 120 metres vertically,
  • 3 RC holes totaling 216 metres to extend the Ronguen Main Zone along strike to the west,
  • 16 RC holes totaling 1,146 metres and 3 trenches totaling 360 metres to infill several inadequately defined areas in the Ronguen Main Zone, and upgrade some sections from the inferred to the indicated category,
  • 6 RC holes totaling 480 metres in the Ronguen South Zone to further probe gold mineralization discovered through rotary air blast drilling and trenching in 2008.

Eighty metres was the vertical limit of the Ronguen mineralized zone as defined in the latest (May 2008) mineral resource estimate report by SRK Consulting (Canada) Inc. which calculated 5.90 million tonnes containing 249,000 inferred ounces of gold at an average grade of 1.3 g gold/tonne (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.

The assay results from RC holes 70, 75, 76 and 77 have confirmed the presence of gold mineralization at vertical depths of up to 111 m. The assay results from RC holes 88 and 96 have confirmed the presence of gold mineralization in areas with little prior drilling and will assist in upgrading portions of the deposit from the inferred to indicated category. Significant intersections are included in the above assay highlights and in the Table of Assay Results. A surface plan showing the drill hole locations is available at www.goldrushresources.ca.

The Ronguen Deposit occurs north of a south dipping thrust fault within a thick zone developed in fine grained graphitic sedimentary rocks intruded by diorite. The gold mineralization is associated with arrays of quartz-carbonate veins and disseminated and veinlet pyrite developed within a major south dipping brittle-ductile deformation zone.

Assay Results

Significant intersections are found in the following table:

Hole ID Line (Grid coord) Station(Grid coord) Grid From (m) To (m) Intersection (m) Gold Grade(g/t Au) Vertical depth (m)1
KGRR010-070 1300E 230S G1 44 69 25 1.0 46.3
including       45 48 3 2.15  
        50 55 5 0.55  
        58 66 8 1.57  
KGRR010-075 900E 95S G1 78 80 2 0.98 71.6
KGRR010-076 1140E 175S G1 115 117 2 1.08 100.5
KGRR010-077 970E 150S G1 83 100 17 1.02 82.9
including       83 84 1 2.22  
        92 93 1 2.06  
KGRR010-088 1340E 115S G1 1 2 1 0.79 1.0
KGRR010-096 970E 12S G1 1 2 1 0.62 1.0
        9 27* 15 7.63 VG 12.7
including       9 10 1 23.3 VG  
        11 12 1 53.4 VG  
and       33 55 22 3.17 VG 31.1
including       34 38 4 4.43 VG  
        51 53 2 9.29 VG  
and       78 87 9 0.60 58.3

* Circulation lost from 18 to 21 m due to artisanal miner shaft
1 "Vertical depth" is the calculated depth to the centre of the intersection.
2 True widths are determined to be 90 to 95% of core intervals.
3 VG: Visible gold identified in the intersection

Drill hole lengths varied from 90 to 135 metres, and inclinations varied from -45 to -65 degrees. A total linear length of 704 metres in six RC holes was sampled and submitted for assaying.

Ongoing Exploration

Based on results to date, a rotary air blast drill ("RAB") has been contracted to continue drilling after the current RC drill program has been completed. The RAB drill will be used for exploratory drilling on new targets on the permits that host the Ronguen deposit and on other permits controlled by Goldrush. An updated resource estimate is planned once the fall 2010 drilling and trenching program is completed and analyzed.

Quality Assurance/Quality Control

Goldrush maintains a rigorous quality control program involving the use of repeat assays, inserted blanks and the use of certified standards provided by an accredited Canadian laboratory. The RC drilling was contracted to Forages Technic-Eau Burkina SARL, the Burkina Faso subsidiary of Forages Technic-Eau of Sherbrooke, Quebec.

At the drill site, the drill cuttings were logged and sampled, with each sample representing a standard one metre sampling interval. The samples for analysis were sealed in bags and transported to Goldrush's secure, guarded compound in the nearby town of Kongoussi where they were stored prior to delivery by Goldrush personnel to the ALS Chemex laboratory in Ouagadougou, Burkina Faso. Company security is provided at the drill site and during transportation of the samples.

At the laboratory, the samples were crushed to provide a 250 – 300 gram subsample which was pulverized to 90% passing -150 mesh and from which a 50 gram charge was prepared and analysed by industry standard fire assaying with atomic absorption finish. For its internal control, ALS Chemex inserted two certified standards, one blank and analysed one random duplicate for approximately each 25 samples submitted. For its certified standard and blank samples included in the QA-QC procedure, Goldrush averaged 6.7% of the total samples submitted.

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 technical information herein.

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 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.

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