Gold Reach Continues To Intersect High Grade Near Surface Mineralization At Ox Including 70 Metres Grading 0.62% Copper Equivalent In Hole Ox13-48
June 27, 2013: Vancouver, British Columbia: Gold Reach Resources Ltd. (GRV: TSX-V) (Gold Reach and/or the Company) is pleased to announce that assay results for holes Ox13-48 to 53 from the Ox deposit have been received. The Ox deposit is located 4 kilometres north-northeast of the Company’s West Seel discovery, and both deposits occur on the Company’s 100% owned Ootsa Property located adjacent to the producing Huckleberry Mine south of Smithers, British Columbia.
Additional High Grade Material Encountered
- Hole Ox13-48 intersected 70m of 0.62% copper equivalent from 50 to 120m depth.
- Hole Ox13-50 intersected 32.5m of 0.65% copper equivalent from 42 to 74.5m depth.
- Hole Ox13-51 intersected 34.4m of 0.68% copper equivalent from 61 to 95.4m depth.
- These grades are higher than predicted by the current resource model and confirm potential to increase grades on the east side of the deposit through additional shallow drilling.
- Gold Potential In the Porphyry - Hole Ox13-51 intersected 34.4m grading 0.12 g/t gold along with 0.41% copper, 0.044% molybdenum and 1.62 g/t silver. This is the first hole at Ox where porphyry style mineralization contains appreciable gold credits. Identifying gold rich zones within the Ox porphyry could have a positive impact on the potential economics of the zone.
- Ox Structural Model Confirmed - A recent structural re-interpretation of the Ox zone suggests the deposit has been offset along a fault and continues under the shallow pond to the east. Holes Ox13-48 and 49 were drilled toward this inferred fault at the south end of the deposit. Both holes intersected the fault, as predicted, and help confirm the new structural model. The potential for expansion of resources on the east side of the fault will be tested by drilling at the north end of the deposit.
The 2013 drilling at the Ox deposit is focusing on infilling and expanding near surface mineralization on the east side of the deposit where historic drilling indicates higher grades. The goal of this infill and expansion drilling will be to increase resource categories, tonnage, and grade ahead of economic studies later in the year.
Ox Drill Results
An updated drill hole location map for Ox is available here http://www.goldreachresources.com/_resources/maps/Ox-drill-hole-location-map-June-26.jpg and cross sections B-B’ and C-C’ showing holes Ox13-48 to 53 are available here
Summary of select drill intercepts – Holes Ox13-48 to 53
|Drill Hole||From (m)||To (m)||Width (m)*||Cu %||Mo%||Au g/t||Ag g/t||Cu Eq.%**|
*Width refers to drill hole intercepts, true widths have not been determined.
**Cu Eq. (copper equivalent) has been used to express the combined value of copper, molybdenum, gold and silver as a percentage of copper, and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $2.50/lb copper, $1200/oz gold, $15 silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Au g/t x 0.701) + (Ag g/t x 0.0087) + (Mo% x 4.01).
Section B-B’ shows an east-west oriented cross section with holes Ox13-48 and 49 which were drilled toward the east at angles of -45 and -65 degrees, respectively, and were designed to intersect a north trending fault zone (the Damascus Fault) which offsets mineralization. Both holes successfully intersected the fault and help define its location in the southern part of the deposit. In the southern area, the fault separates mineralized sedimentary rocks on the west side from strongly altered but unmineralized volcanic or fine grained intrusive rocks on the east side. Hole Ox13-48 intersected 114.3 metres grading 0.28% copper and 0.041% molybdenum (0.48% copper equivalent) from 5.7 to 120 metres depth, including 70 metres grading 0.32% copper and 0.061% molybdenum (0.62% copper equivalent) from 50 to 120 metres depth. Hole Ox13-49 intersected 92 metres grading 0.28% copper and 0.034% molybdenum (45% copper equivalent) from 40 to 132 metres depth. The Damascus Fault bounds mineralization in the southern part of the deposit, however, in the northern part of the deposit, mineralization is inferred to continue to the east of the fault under a shallow pond (see the drill hole location map link above). Future drilling near the north end of the Ox deposit will test for mineralization on the east side of the Damascus Fault, and if successful could lead to significant expansion potential for the deposit.
Section C-C’ is oriented to the northeast perpendicular to the main intrusive contact and shows holes Ox13-50 to 53. The section defines a mineralized zone roughly 200 metres wide by 150 metres deep, with mineralization remaining open to the southwest and to depth. Mineralization starts at surface, beneath a few meters of gravel cover, and contains higher grades on the east side adjacent to the intrusive contact. Hole Ox12-50 intersected 62.5 metres of continuous mineralization grading 0.34% copper and 0.027% molybdenum (0.5% copper equivalent) starting at 12 metres depth and extending to the contact of a coarse porphyritic intrusive body at 74.5 metres depth. Included in this zone is a 32.5 metre interval grading 0.44% copper and 0.033% molybdenum (0.65% copper equivalent) from 42 to 74.5 metres depth. Hole Ox12-51 intersected 85.9 metres grading 0.34% copper and 0.038% molybdenum (0.55% copper equivalent) from 9.5 to 95.4 metres depth, including 34.4 metres grading 0.41% copper, 0.044% molybdenum, and 0.12 g/t gold (0.68% copper equivalent) from 61 to 95.4 metres depth. This is the first hole at Ox where porphyry style mineralization contains appreciable gold credits, and opens up the potential for gold rich zones within the system.
Dr. Shane Ebert, president of Gold Reach, commented: "The company is extremely pleased with the higher grades encountered in the 2013 drilling to date. Infill drilling continues to intersect higher grades than predicted by the current resource model, confirming the potential to increase grades through additional shallow drilling. Additional holes are being drilled into the east edge of the deposit to determine if a higher-grade core can be delineated."
The mineralized zone at Ox has been identified over a length of 750 metres and typically has widths ranging from 100 to 200 metres and extends to depths of 150 to 230 metres. Mineralization in this zone starts at surface, below a few metres of glacial gravels, and is being evaluated as a potential open-pit-minable resource. A recent structural reinterpretation of the Ox zone suggests the deposit has been offset along a fault and continues under the shallow pond to the east. If this interpretation is correct the deposit could extend another 500 metres to the northeast, significantly increasing the size potential of the system.
Assay results for the first 9 holes drilled at Ox during the 2013 program have been received (holes Ox13-45 to Ox13-53). An additional 22 holes have been completed at Ox (Ox13-54 to 75) and are in the lab getting assayed. The drill is currently working on hole Ox13-76.
The current round of drilling is focusing on infilling and expanding three areas of higher grade near-surface mineralization with open pit potential at Ox, East Seel, and West Seel. Previous drilling in all three zones has intersected significant grades at shallow depths including hole S11-90 at East Seel which returned 194 metres grading 0.37% copper and 0.42 g/t gold (0.66% copper equivalent) starting at 22 metres depth (previously released), hole S06-42 just north of East Seel which returned 138 metres grading 0.85% Cu and 23 g/t Ag (1% copper equivalent) starting at 22 metres depth (previously released), and hole S12-108 at West Seel which intersected 316 metres grading 0.56% copper equivalent starting at 24 metres down hole, including 30 metres grading 1% copper equivalent starting at 74 metres down hole.
Additional information is available on our website at www.goldreachresources.com.
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.
All drill core is logged, photographed, and cut in half with a diamond saw. Half of the core is bagged and sent to AGAT Laboratories for analysis (which is an ISO 9001 and ISO/IEC 17025 certified lab), while the other half is archived and stored on site for verification and reference purposes. Gold is assayed by standard fire assay methods with 45 additional elements analyzed by Induced Coupled Plasma (ICP) utilizing a 4-acid digestion. Duplicate samples, blanks, and certified standards are included with every sample batch and then checked to ensure proper quality assurance and quality control.
Dr. Shane Ebert P.Geo., President of the Company, is the Qualified Person for the Ootsa project as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.
Shane Ebert, President/Director
For Further information, please contact:
S. Ebert direct line: 250 964-2699
Toll Free: 888-500-4587
B&D Capital Partners
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.