Gold Reach Provides A Summary Of The Ootsa Copper Gold Project British Columbia, And Announces Exploration Plans For 2018
January 10, 2018, Vancouver, British Columbia - Gold Reach Resources Ltd. (the “Company” or “Gold Reach”) (TSX-V:GRV) is pleased to provide a summary of previous exploration and engineering results from the Ootsa Property along with Corporate plans for 2018. Gold Reach owns a 100% interest in the Ootsa Property, an advanced stage copper-gold exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the Huckleberry open pit copper mine in British Columbia. The Company has drilled over 122,066 metres of core in 353 holes on the Ootsa Property since 2004, and has encountered strong mineralization within the 3 deposits defined to date as demonstrated by the 3 select intercepts presented below.
- 146.3 metres grading 0.51% Cu and 0.59 g/t Au from East Seel (Hole S13-148)
- 537 metres grading 0.27% Cu, 0.19 g/t Au, and 0.055% Mo from West Seel (Hole S12-118)
- 108.7 metres grading 0.44% Cu, 0.04% Mo, and 0.06 g/t Au from Ox (Hole Ox13-110)
Ootsa Project Summary
Gold Reach has had significant exploration success at Ootsa, having discovered the East Seel deposit in 2006, the West Seel deposit in 2011, and predicted and successfully targeted a significant expansion on the east side of the Ox deposit in 2013. Large near surface Measured and Indicated category resources constrained by 3 conceptual open pit shells have been defined containing NI 43-101 compliant resources of 224 million tonnes in the Measured and Indicated categories. These resources contain 1.1 billion pounds of copper and 1 million ounces of gold as summarized in the table below. The West Seel deposit remains open for expansion.
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. The resource update and Preliminary Economic Assessment was completed by P&E Mining Consultants Inc. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
A map showing the Ootsa Property and known deposits and prospects is available here Deposit Map click here.
A summary of select drilling highlights from the East Seel, West Seel and Ox deposits are presented in the table below and illustrate the long intercepts of strong mineralization encountered at Ootsa. All drill holes for the project have been previously released.
|Drill Hole||Deposit||From (m)||To (m)||Width (m)*||Cu Eq%**||Cu %||Au g/t||Mo%||Ag g/t|
*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).
Plans for 2018
The Ootsa property contains numerous untested Cu-Au porphyry exploration targets adjacent to and on trend with known deposits. The large 72,710 hectare property also contains numerous Au-Ag and base mental zones that have seen limited modern exploration. During 2018 the Company plans to resume exploration at Ootsa with 3 main objectives:
- Optimize the existing deposits by expanding existing resources and known higher grade trends where they remain open, and continue ongoing efforts to remove project risk which could include social, geotechnical, metallurgical, and environmental work.
- Drill test high priority Cu-Au porphyry targets that occur proximal to the existing deposits. The objective will be to target new zones of near surface mineralization that would enhance the economics of the project.
- Advance several gold silver and base metal exploration targets within the Ootsa claim block. This will include early stage surface exploration with the possibility of drill testing later in the season.
The Company has applied for a new 5-year exploration permit to support its planned 2018 exploration activities. Details and a budget for a 2018 exploration program will be released prior to an anticipated early June start date.
Name Change Considered
The Company is considering changing its name to better reflect the large copper resource it has established and is looking to increase market awareness of its advance project favorably located in a low risk setting, adjacent to an existing mine with limited reserves. An updated corporate presentation will be posted on our website (www.goldreachresources.com) shortly.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
President and Chief Executive Officer
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, 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.