VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 11, 2013) - Gold Reach Resources Ltd. (TSX VENTURE:GRV) (Gold Reach and/or the Company) is pleased to announce an updated resource estimate for the Ox deposit on the company''s 100% owned Ootsa property, British Columbia.
OX RESOURCE HIGHLIGHTS
- Inferred Resources Increase 227% - The inferred resource at Ox has increased from 16.1 million tonnes to 52.65 million tonnes, an increase of 227%.
- Contained Copper Increases - Contained copper at Ox increases to 343.75 million pounds.
- Contained Molybdenum Increases - Contained molybdenum at Ox increases to 25.5 million pounds.
- Very Large Total Resources on Ootsa Property - The new Ox resource containing 52.65 million tonnes of inferred resources combined with the recently announce Seel resource containing 410.9 million tonnes inferred and 67.8 million tonnes indicated (see January 29, 2013 news release) brings the total NI 43-101 compliant resources on the Ootsa property to a very significant level.
The new independent mineral resource estimate study was conducted by Giroux Consultants Ltd. and follows up a mineral resource estimate on Ox completed by Wardrop Engineering in 2008. The new resource is based on 11,090 meters of drilling in 44 holes and was completed in accordance with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and the CIM Standards on Mineral Resources and Reserves, and has an effective date of February 8, 2013. A technical report with details on the Seel and Ox resource estimates will be available shortly.
Results of the new resource estimate are summarized in the tables below.
At a 0.2% copper equivalent (Cu Eq) cut off the Ox deposit contains an indicated resource of 52.65 million tonnes grading 0.21% Cu and 0.022% Mo (0.32% Cu Eq). At a higher cut off of 0.3% copper equivalent the Ox deposit contains a resource of 27.7 million tonnes grading 0.25% copper and 0.026% Mo (0.38% Cu Eq).
|Inferred Resource Within the Mineralized Solids|
|Tonnes||Grade > Cut-off|
|Cu (%)||Au |
|Mo (%)||Ag |
|CuEq = Copper equivalent. Metal price and recovery assumptions are discussed below.|
Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. An ''Indicated Mineral Resource'' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. An ''Inferred Mineral Resource'' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified.
The contained metals at a 0.2% Cu Eq cut are summarized in the table below.
Ox inferred contained metals at 0.2% Cu Eq cut off
|Cu Eq||371,434,819 pounds|
Using a 0.2% Cu Eq cut off the new Ox resource contains 343.75 million pounds of copper and 25.5 million pounds of molybdenum along with 50,782 ounces of gold and 2.1 million ounces of silver.
Dr. Shane Ebert, President of the company stated, "We are extremely pleased that our 2012 drilling program at Ox has more than tripled the size of the Ox deposit from 16.1 to 52.56 million tonnes. The Ox deposit has now become a very significant copper and molybdenum resource which starts at surface and has potential to be exploited by open pit methods. The very large resource expansion the company has achieved in a short amount of time at our Seel and Ox deposits is a testament to the excellent exploration potential of the Ootsa property. Numerous untested exploration targets occur surrounding the Seel and Ox deposits, and the bulk of the Ootsa property remains unexplored. The company is confident that continued aggressive exploration in 2013 will lead to significant additional increases in the resource base on the property".
Results of detailed metallurgical testing from 3 samples from the Seel deposit are still underway and will be reported once complete. For more information please see our website at http://goldreachresources.com.
The resource estimation was carried out by Giroux Consultants Ltd of Vancouver, British Columbia and Independent Qualified Person Gary Giroux, P.Eng is responsible for the estimate. Surface mapping and drill hole geology at the Ox deposit was used to establish geologic continuity of the mineralized zone and formed the basis for modelling. Geologic modeling was done using GemCom software and mineralized domains (solids) have been defined based on alteration type and grades > 0.15 % CuEq. All assays outside the solids were considered waste.
Uniform down hole 5 m composites were formed from the drill data and a block model with blocks 10 x 10 x 5 m in dimension was superimposed over all of the mineralized solids. Grades for Cu, Au, Mo and Ag were interpolated into each block by Ordinary Kriging. Due to the poly metallic nature of the Ox deposit a copper equivalent based cut off was used for modelling. Copper equivalent values were calculated using $3.25 lb for Cu and 3 year trailing average metal prices for Au and Ag ($1500 ounce Au, $29 ounce Ag) and a price of $12 lb for Mo. Recoveries used were obtained from previous metallurgical testing done on the property (96% recovery for Cu, 87% recover for Au, 86% recovery for Ag, and 87% recovery for Mo).
All of our recent news releases can be viewed on the Company''s website at http://goldreachresources.com/news/2013/.
PDAC Toronto and Mines and Money Hong Kong
Gold Reach will display core from the Seel deposit at the Core Shack during the Prospectors and Developers Association of Canada (PDAC) 2013 at the Metro Toronto Convention Centre, Toronto. Seel core will be displayed from 10 am to 5:30pm on Sunday March 3 and Monday March 4 at Booth 5002 in the Core Shack, level 700. Gold Reach will also have a display during PDAC in the Exhibitor Hall, level 800, at booth 2525.
Gold Reach is pleased to announce that it will be attending the Mines and Money Conference in Hong Kong at the Hong Kong Convention and Exhibitor Centre from March 18 to 22. Gold Reach will have a display at booth L53, and will give a presentation on the Ootsa project at 12:50pm on March 19th.
About Gold Reach Resources
Gold Reach Resources Ltd. has made an important new and strategic Copper Gold Molybdenum discovery on its 100% held Ootsa Property located adjacent to the 16,000 tonne per day Huckleberry Mine currently producing Cu Au and Mo in central BC.
Gold Reach''s Ootsa property is an advanced stage exploration project containing the Seel and Ox porphyry systems both with compliant resource estimates open for expansion. The Company has recently added the discovery of the West Seel Porphyry where drill hole S12-118 encountered 128 metres grading 1.01% Cu Eq. consisting of 0.43% Cu, 0.33 g/t Au, 0.076% Mo and 4.76 g/t Ag within a much larger interval of 537 metres grading 0.65% Cu Eq. consisting of 0.27% Cu, 0.19 g/t Au, 0.055% Mo, and 2.69 g/t Ag. The Seel deposit contains 67.8 million tonnes of indicated resources and 410.9 million tonnes of inferred resources at a 0.2% copper equivalent cut off. The Ox deposit contains 52.65 million tonnes of inferred resources at a 0.2% copper equivalent cut off.
The Company is well financed with over $2.26 million dollars in the treasury and holds a 2% NSR covering 23,000 hectares of mining claims located adjacent to the Blackwater Gold deposit in central British Columbia.
Dr. Shane Ebert, P. Geo. is the Qualified Person responsible for the preparation of this news release. Gary Giroux, P.Eng of Giroux Consultants Ltd has reviewed the portion of this news release pertaining to the resource estimate.
Shane Ebert, President/Director
Safe Harbour Statement: The Company relies upon litigation protection for "forward-looking statements." The Company undertakes no obligation to update these forward- looking statements in the managements beliefs, estimates obligations or other factors should change.