Gold Reach Provides A Review Of 2016 Activities
January 17, 2017, Vancouver, British Columbia - Gold Reach Resources Ltd. (the “Company” or “Gold Reach”) (TSX-V:GRV) is pleased to provide an overview of the Company’s accomplishments during 2016. Gold Reach owns a 100% interest in the Ootsa Property, an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the Huckleberry open pit copper mine in British Columbia.
Key advances made in 2016 include:
- In February, the Company released a Resource Update and Preliminary Economic Assessment (PEA) for the Ootsa Property. Details of the study can be found in the Company’s February 9, 2016 news release, and in a technical report, available on the Company’s website and on SEDAR. The PEA shows potential for a low capital cost, low risk, high margin project with rapid pay back utilizing existing infrastructure in the district with a contract mining and toll milling scenario. The study indicates significant amounts of copper, gold, molybdenum, and silver could potentially be produced over 12 years.
- In July the Company successfully raised $700,000 by way of a non-brokered private placement, having increased the originally announced $600,000 financing due to strong demand.
- In August and September, the Company completed mapping and sampling at the Troitsa Peak Target, located on the Ootsa Property. This work defined an alteration zone 1700m long by 250m wide with surface samples returning up to 1.4 g/t gold and 40 g/t silver over 1m. A float boulder of black matrix porphyry was found during prospecting and returned 4.78% copper and 96.9 g/t silver, and represents a new exploration target in the area. Details of this exploration program can be found in the Company’s September 30, 2016 news release available on the Company’s website.
- In September, base line water sampling was conducted around the Seel and Ox deposits. This sampling program is part of an on-going effort to advance the deposits, remove project risk, and prepare for further advanced economic studies.
Dr. Shane Ebert President of the Company stated, “Gold Reach has made significant progress in 2016 with the completion of a positive economic study on our Seel and Ox deposits, and the identification of new exploration targets on the property. We look forward to further progress in 2017 as we pursue corporate opportunities, continue to advance our main deposits, and further our exploration targets. Programs, budgets, and opportunities for 2017 are still being evaluated and details will be released once finalized.”
Incentive Stock Options Granted
The Company has granted 793,000 incentive stock options to its directors, officers, employees, and consultants, at an exercise price of $0.12 per share for a term of five years from the date of the grant. The incentive stock options were granted in accordance with the Company’s Stock Option Plan and in part replace 923,000 options that expired on January 3, 2017.
About Gold Reach Resources
Gold Reach Resources owns a 100% interest in the Ootsa Property, an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry copper mine. The property contains NI 43-101 compliant resources of 224 million tonnes in the Measured and Indicated categories with contained metals of 1.1 billion pounds of copper and 1 million ounces of gold as summarized in the table below.
Ootsa Project Pit Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off Value
On February 9, 2016, the Company announced a positive Preliminary Economic Assessment (PEA) for the Ootsa Property with potential for low capital cost, low risk and rapid pay back utilizing existing infrastructure in the district with a contract mining and toll milling scenario. The study recommends that Gold Reach continue to advance the Ootsa Project with extended and advanced technical studies with the intention of moving the project toward a production decision.
The current technical report supporting the resource statement and PEA is available on SEDAR or the Company’s website at www.goldreachresources.com and has an effective date of January 2016. The resource estimate uses $8.50 per tonne NSR cut-off value. 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. A ‘Measured Mineral Resource’ is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. 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. Copper Equivalent (CuEq) calculations are based on base case metal price (US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and US$17/oz Ag) and process recovery assumptions, and take into account smelter payable rates and refining costs. M&I = measured and indicated.
Dr. Shane Ebert P.Geo., 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.
President and Chief Executive Officer
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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.
This News Release contains forward-looking statements, which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or "anticipates" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Such uncertainties and risks may include, among others, that the Offering will not complete, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.