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Introduction

Gold Reach Resources Ltd. (Gold Reach or the Company) owns a 100% interest in the 67,937 hectare Ootsa Property located in the Omineca Mining Division of north-west British Columbia.  The Ootsa property contains 3 known porphyry deposits, the East and West Seel Porphyries and the Ox Porphyry, and also contain zones of high grade silver and base metal veins at Damascus and Captain.  In 2011 Gold Reach drilled 10,393.4 metres of core in 20 holes at the Seel deposit and significantly extended the known mineralized zone to depth and discovered the West Seel deposit, increasing the resource base by nearly 5 times.  In 2012 the Company drilled over 45,000 metres and roughly doubled the resource base again.  In 2013 the Company drilled over 36,000 metres producing the first open pit constrained resource for the property and increased the measured and indicated resource base by over 227%.  The West Seel deposit still remains open for expansion and is over 800 metres wide at the southern end and remains open in that direction.


Satellite Photograph Showing the Known Mineralized Deposits and Exploration Targets Around the Ox and Seel Deposits

The Seel and Ox resources are presented below.  The Damascus silver base metal vein system contains non-compliant historical resources of 196,000 tonnes grading 411 g/t Ag. 

The Damascus resources are historical and are not compliant with NI 43-101.  They were estimated for Lansdowne Oil and Minerals in a 1984 company report titled Review of 1982-83 Exploration Lean-To and Panther Groups of Mineral Claims Tahtsa Lake Area Omineca Mining Division BC.  The historical estimate was done using a cross sectional method based on drill holes and additional drilling is required to verify the historical estimate.  A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Gold Reach is not treating the historical estimate as current mineral resources or mineral reserves.

The Ootsa property contains good road access with a network of all-weather logging roads extending throughout the claims.  The Seel Porphyry occurs in an area of gentle topography and the near-surface zone of mineralization has favorable geometry for open pit exploitation.  The West Seel deposit is less than 6 kilometres from the operating Huckleberry Porphyry Cu-Mo Mine which is owned by a consortium of Japanese companies and Imperial Metals Corporation.  The Huckleberry Mine mills 17,000 tons of ore per day and has a mine plan which has mining operations continuing until 2021 (Imperial Metals November 22, 2011 news release). The Ootsa Project is 120 kilometres by gravel road from the town of Houston and is located on the south side of Tahtsa Reach.


Photograph of the West Seel Deposit, Looking North Towards Ox

Included in the Ootsa Property are the Seel Claims which were acquired in 2003 from Rupert Seel and have a 1% underlying royalty of which half can be purchased at any time by Gold Reach for $1,000,000.  Also included in the Ootsa Property are the Ox Claims which were acquired from Silver Standard in 2006 and have a 2% royalty of which 1% can be bought back for $500,000 and the remaining 1% can be bought back for $1,000,000.  Two claims covering the historic Captain Mine were purchased by Gold Reach in March 2014 and have a 2% underlying royalty which can be bought back for $1,000,000.  The balance of the Ootsa Property was staked by Gold Reach (and/or subsidiary Ootsa Ventures Ltd.) and has no underlying royalties. 

The area covered by the Ootsa Property has been intermittently explored by a number of operators over a 34-year period leading to the discovery of several zones of porphyry-Cu related mineralization.  Since 2003 Gold Reach has spent over $20 million on exploration, with plans to continue exploration and development in 2014.     

Geology and Mineralization of the Seel Deposit

The Ootsa Property is underlain by the Lower to Middle Jurassic Hazelton Group, a sequence of felsic to intermediate volcanic and sedimentary rocks.  On the property, Hazelton Group rocks are cut by multi-phase intrusive complexes that are correlative with the Late Cretaceous Bulkley Intrusive suite, and are spatially and temporally associated with porphyry Cu-Au-Mo mineralization.   Rocks in the area have undergone compressional and extensional deformation, and the area has been dislocated by faulting into a series of uplifted (horsts) and down dropped (graben) fault blocks.  The Seel deposit exposes a high level porphyry system that has been well preserved within a down dropped graben that exposes clastic sedimentary rocks from the upper part of the Hazelton Group.


Geology of Tahtsa Reach (from Christensen et al., 2011, Technical Report on the Huckleberry Mine, and Gold Reach mapping)

The figure below shows a simplified cross section through the Seel deposit illustrating the outline line of mineralization, faulting, and the presence of late gold and silver rich base metal veins.


Simplified Cross Section Through the Seel Deposit (section location shown on map above)

The Seel deposit is located on a gently sloped forest covered area with limited bedrock exposure and typically 0 to 40 meters of glacial cover.  The geology of the Seel deposit is summarized in the figure below.  Porphyry related mineralization is the dominant style of mineralization at Seel and can be separated into a zone of Cu-Au mineralization (Seel) and a zone of Cu-Au-Mo-Ag mineralization (West Seel).  The West Seel deposit is a new discovery made late in the 2011 drilling program and occurs below and adjacent to shallow holes drilled in 2005 and 2008.


Simplified Geology Map of the Seel Deposit

East Seel Cu-Au zone

The East Seel deposit contains Cu-Au style porphyry mineralization associated with early potassic alteration and quartz + magnetite + sulfide veining hosted in a coarse crowded porphyritic intrusive.  Potassic alteration in the Cu-Au zone has locally been overprinted by sericite alteration.  Mineralization consists of finely disseminated pyrite and chalcopyrite in a variably silica flooded groundmass, with pyrite and chalcopyrite also occurring along fractures, and pyrite-chalcopyrite-magnetite +/- bornite occurring in quartz veins.  Table 1 shows select drill results from the East Seel Cu-Au zone.  Very strong drill hole results have been obtained from the core of the deposit highlighted by hole S13-183 which intercepted 179.5 metres grading 0.43% Cu and 0.50 g/t Au (0.80% Cu Eq.) including 24 metres grading 1.11% Cu and 1.22 g/t Au (2.01% Cu Eq.).  Three deep holes tested the Cu-Au during the 2011 drilling program (holes S11-82, S11-88, and S11-90 and all 3 intersected long intervals of continuous mineralization with the zone remaining open at depth.  This is highlighted by hole S11-90 which intersected 764.5 metres of continuous mineralization grading 0.17% Cu and 0.2 g/t Au (0.32% Cu Eq.).  Holes drilled within the centre of the Cu-Au zone all intersected a higher grade zone starting at surface highlighted by hole S11-90 which intersected 194 metres grading 0.37% Cu and 0.42 g/t Au from 28 to 222 metres depth.

Select Drill Hole Results from the East Seel Cu-Au Zone

Drill Hole   
From (m)
To (m)
Width (m)*
Cu %
Au g/t
Ag g/t
Mo %
Cu Eq.%**
S13-148
31.7
178
146.3
0.51
0.59
2.33
-
0.94
including
31.7
76
44.3
0.94
1.12
3.46
-
1.76
S13-151
32.9
193
160.1
0.33
0.38
2.01
-
0.61
including
67.2
151
83.8
0.42
0.51
2.53
-
0.80
including
113
133
20
0.64
0.84
3.65
-
1.26
S13-153
64
188
124
0.37
0.37
1.63
-
0.64
including
68
84
16
0.81
0.76
3.63
-
1.37
S13-155
30
268 EOH
238
0.38
0.47
1.93
-
0.73
including
30
190
160
0.44
0.53
1.98
-
0.83
including
42
86
44
0.62
0.67
2.76
-
1.11
S13-157
31.7
218
186.3
0.37
0.41
1.82
-
0.67
including
31.7
158
126.3
0.42
0.45
2.07
-
0.75
S13-160
72.7
177
104.3
0.34
0.42
1.54
-
0.65
including
77
151
74
0.41
0.47
1.67
-
0.75
S13-164
44.1
163
118.9
0.38
0.42
2.17
-
0.69
including
44.1
93
48.9
0.45
0.54
2
-
0.85
S13-177
26.8
213
186.2
0.39
0.53
1.86
-
0.78
including
26.8
109
82.2
0.56
0.81
2.43
-
1.15
including
61
107
46
0.68
1.05
2.73
-
1.44
S13-178
26.5
170
143.5
0.46
0.55
2.43
-
0.87
including
26.5
110
83.5
0.53
0.64
2.45
-
1.00
S13-183
30.5
210
179.5
0.43
0.5
1.93
-
0.80
including
38
134
96
0.58
0.62
2.75
-
1.04
including
76
100
24
1.11
1.22
4.98
-
2.01
S11-88
35.5
810.2
774.7
0.16
0.151
-
0.014
0.32
including
35.5
141
105.5
0.41
0.44
-
-
0.72
including
583
683
100
0.25
0.202
-
0.019
0.47
including
577
811
234
0.19
0.167
-
0.016
0.37
S11-90
28
792.5
764.5
0.17
0.199
-
0.003
0.32
including
28
448
420
0.24
0.269
-
-
0.43
including
28
222
194
0.37
0.419
-
-
0.66

*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).

West Seel Cu-Au-Mo-Ag zone

Mineralization at West Seel is hosted within a medium grained weakly porphyritic intrusive rock containing strong biotite alteration (10 to 40% biotite) and a pyrrhotite-pyrite-chalcopyrite-molybdenite sulfide assemblage, and partially hosted in a hornfelsed wallrock contact zone.  The wall rocks are comprised mainly of fine grained sedimentary rocks (mudstone, siltstone, minor sandstone) with biotite hornfels.  The south and west side of the Seel porphyry complex is fairly complex, with a few different styles of intrusion.

Numerous drill holes from West Seel have encountered long intercepts of Cu-Au-Mo-Ag bearing porphyry style mineralization. Drilling results are summarized in the table below and highlighted by hole S11-118 which returned 537 metres grading 0.27% Cu, 0.19 g/t Au, 0.055% Mo, and 2.69 g/t Ag (0.65% Cu Eq.).

Select Drill Hole Results from the West Seel Zone


Drill Hole   
From (m)
To (m)
Width (m)*
Cu %
Au g/t
Mo%
Ag g/t
Cu Eq.%**
S12-101
262
1079
817.0m
0.2
0.21
0.026
2.24
0.45
including
308
829.8
521.8
0.23
0.3
0.032
2.63
0.57
including
584
778
194
0.22
0.47
0.04
1.85
0.71
S12-104
368
768
400
0.24
0.19
0.03
2.76
0.52
including
368
482
114
0.4
0.43
0.039
5.4
0.91
S12-106
120
892
772
0.23
0.14
0.028
3.31
0.44
including
400
816
416
0.25
0.16
0.038
2.45
0.51
including
478
578
100
0.36
0.3
0.061
2.92
0.81
S12-108
24
340
316
0.28
0.23
0.018
5.28
0.56
S12-109
262
554
292
0.23
0.21
0.03
2.8
0.52
including
372
492
120
0.29
0.31
0.046
3.7
0.72
S12-118
350
887
537
0.27
0.19
0.055
2.69
0.65
including
356
484
128
0.43
0.33
0.076
4.65
1.01
S12-119
234
807.7
573.7
0.24
0.13
0.026
2.62
0.46
S12-120
220
530
310
0.23
0.31
0.021
2.73
0.56
including
344
496
152
0.31
0.54
0.034
3.84
0.85
S12-121
234
987.5 EOH
753.5
0.24
0.12
0.024
2.26
0.43
including
270
602
332
0.32
0.2
0.039
3.58
0.65
including
270
400
130
0.39
0.25
0.051
5.35
0.81
S12-124
78
564
486
0.18
0.2
0.019
2.85
0.43
S13-154
18
32
14
0.41
0.09
0.129
12.86
1.1
S13-154
60
356
296
0.23
0.22
0.016
4.44
0.49
including
60
82
22
0.33
1.19
0.021
9.94
1.33
including
218
340
122
0.3
0.17
0.016
4.7
0.52
S13-162
144
449 EOH
305
0.27
0.18
0.036
3.9
0.57
including
244
447.5
203.5
0.3
0.22
0.043
4.11
0.66

Mineral Resources Seel

The mineral resource below is based on drilling up to the end of 2013.  The latest independent NI 43-101 compliant resource estimate update on the Seel deposit is supported in a February 2014 technical report, and further details of the resource estimate can be found the Company’s February 18, 2014 news release.  The resource estimate has been constrained by a conceptual open pit and was based on 83,810 meters of drilling in 199 holes and the results are summarized in the tables below.

Open Pit Constrained Measured + Indicated Resources East and West Seel Deposits


Cut-off
(CUEQ)
Tonnes
(x1000)
Grade  > Cut-off
Cu (%)
Au (g/t)
Mo (%)
Ag (g/t)
CuEq (%)
0.10
147,530
0.18
0.14
0.015
2.23
0.33
0.20
116,340
0.21
0.16
0.017
2.56
0.38
0.30
73,670
0.25
0.20
0.020
2.99
0.45
0.40
39,780
0.29
0.25
0.024
3.14
0.54
0.50
20,790
0.33
0.31
0.027
3.18
0.62

Open Pit Constrained Inferred Resources East and West Seel Deposits


Cut-off
(CUEQ)
Tonnes
(x1000)
Grade  > Cut-off
Cu (%)
Au (g/t)
Mo (%)
Ag (g/t)
CuEq (%)
0.10
257,830
0.17
0.11
0.019
2.11
0.31
0.20
211,390
0.18
0.12
0.021
2.29
0.34
0.30
126,680
0.22
0.15
0.025
2.51
0.40
0.40
51,640
0.26
0.19
0.031
2.80
0.49
0.50
17,860
0.30
0.24
0.036
3.21
0.58

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.  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.CuEq = Copper equivalent.   Copper equivalent values were calculated using metal prices of $3.00 lb for Cu, $1300 ounce Au, $22 ounce Ag, and $10 lb for Mo. Recoveries used assume 95% recovery for Cu, 85% recovery for Au, 86% recovery for Ag, and 91.5% recovery for Mo.  The effective date for the Seel resource estimate is January 2014.

Seel Pit Constrained Contained Metals At 0.2% CU EQ. Cut Off

Element
Measured and Indicated
Inferred
Copper
538,620,000 pounds
838,863,000 pounds
Molybdenum
43,603,000 pounds
97,867,000 pounds
Gold
598,500 ounces
816,000 ounces
Silver
9,575,500 ounces
15,564,000 ounces
 
 
 
Cu Eq.
974,646,000 pounds
1,584,520,000 pounds

Using a 0.2% Cu Eq. cut off the new Seel pit constrained resource contains 538.6 million pounds of copper, 43.6 million pounds of molybdenum, 0.6 million ounces of gold and 9.58 million ounces of silver in the measured and indicated categories plus 838.9 million pounds of copper, 97.9 million pounds of molybdenum, 0.8 million ounces of gold, and 15.56 million ounces of silver in the inferred category.

Mineral Resources Ox

The mineral resource below is based on drilling up to the end of 2013.  The latest independent NI 43-101 compliant resource estimate update on the Ox deposit is supported in a February 2014 technical report, and further details of the resource estimate can be found the Company’s January 13, 2014 news release.  The resource estimate has been constrained by a conceptual open pit and was based on 28,361 meters of drilling in 134 holes and the results are summarized in the tables below.

                           Ox Open Pit Constrained Measured Plus Indicated Resources


Cut-off
(CUEQ)
Tonnes
(x1000)
Grade  > Cut-off
Cu (%)
Mo (%)
Au (g/t)
Ag (g/t)
CuEq (%)
0.10
48,140
0.18
0.024
0.04
1.39
0.29
0.20
37,620
0.21
0.027
0.04
1.53
0.33
0.30
20,230
0.25
0.031
0.04
1.80
0.39
0.40
7,710
0.31
0.035
0.05
2.10
0.47

Ox Open Pit Constrained Inferred Resources


Cut-off
(CUEQ)
Tonnes
(x1000)
Grade  > Cut-off
Cu (%)
Mo (%)
Au (g/t)
Ag (g/t)
CuEq (%)
0.10
17,780
0.16
0.018
0.03
1.20
0.24
0.20
12,180
0.18
0.021
0.03
1.31
0.28
0.30
3,570
0.23
0.027
0.04
1.55
0.35
0.40
370
0.30
0.033
0.04
1.86
0.44

Ox Pit Constrained Contained Metals At 0.2% Cu Eq. Cut Off

Element
Measured and Indicated
Inferred
Copper
174,169,596 pounds
48,334,146 pounds
Molybdenum
22,393,234 pounds
5,638,984 pounds
Gold
48,380 ounces
11,748 ounces
Silver
1,850,552 ounces
512,991 ounces
 
 
 
Cu Eq.
273,695,080 pounds
75,186,450 pounds

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.  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.  CuEq = Copper equivalent.   Copper equivalent values were calculated using metal prices of $3.00 lb for Cu, $1300 ounce Au, $22 ounce Ag, and $10 lb for Mo. Recoveries used assume 94.3% recovery for Cu, 70.7% recovery for Au, 84.1% recovery for Ag, and 92.4% recovery for Mo.  The effective date for the Ox resource is January 2014.

Using a 0.2% Cu Eq. cut off the new Ox pit constrained resource contains 174.2 million pounds of copper and 22.4 million pounds of molybdenum in the measured and indicated category plus 48.3 million pounds of copper and 5.6 million pounds of molybdenum in the inferred category.

Summary of Open Pit Constrained Resources on the Ootsa Property by Resource Category

Deposit Class Cut-off
CuEq
Tonnes
(x1000)
Grade> Cut-off
Cu (%) Au (g/t) Mo (%) Ag (g/t) CuEq (%)

Seel 2014

Measured

0.20 27,820 0.24 0.22 0.010 2.29 0.42

Seel 2014

Indicated

0.20 88,520 0.20 0.14 0.019 2.65 0.36

Ox 2014

Measured

0.20 10,560 0.21 0.04 0.029 1.64 0.34

Ox 2014

Indicated

0.20 27,070 0.20 0.04 0.026 1.49 0.32

Total

M&I

0.20 153,970          

 

 

             

Seel 2014

Inferred

0.20 211,390 0.18 0.12 0.021 2.29 0.34

Ox 2014

Inferred

0.20 12,180 0.18 0.03 0.021 1.31 0.28

Total

Inferred

0.20 223,570          

 

 

             

Seel 2014

Measured

0.40 12,490 0.33 0.33 0.011 2.69 0.57

Seel 2014

Indicated

0.40 27,280 0.27 0.22 0.030 3.35 0.52

Ox 2014

Measured

0.40 2,890 0.31 0.06 0.037 2.25 0.48

Ox 2014

Indicated

0.40 4,820 0.31 0.05 0.034 2.02 0.46

Total

M&I

0.40 47,480          

 

 

             

Seel 2014

Inferred

0.40 51,640 0.26 0.19 0.031 2.80 0.49

Ox 2014

Inferred

0.40 370 0.30 0.04 0.033 1.86 0.44

Total

Inferred

0.40 52,010          

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. 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.M&I = measured and indicated.

Comparison of Seel and Ox Grades

The chart below shows a comparison of the grades of the pit constrained resources at the Ootsa project with existing mines and development projects in British Columbia on a copper equivalent basis.  The relative value of copper, gold, molybdenum, are broken down and shown as different colors.

Metallurgy Seel and Ox

Metallurgical testing on the Seel and Ox deposits has been performed by Inspectorate Exploration and Mining Services Ltd. located in Richmond, British Columbia, and metallurgical test work is ongoing.  Four large samples from the Seel deposit have been sent for metallurgy, results for 3 samples are shown below, and testing of a fourth sample is still in progress.  Initial tests from Seel show good metallurgical recoveries with no metallurgical difficulties encountered.  Results from rougher flotation tests and third cleaner tests are shown below.

                                      Seel Typical Rougher Circuit Results 


Sample
Grind Size
Feed Grade % Cu
Feed Grade % Mo
Feed Grade g/t Au
Rougher Circuit Recovery %
Cu
Au
Mo
1
128
0.28
0.028
0.17
96.6
90.8
90.0
2
128
0.29
0.047
0.20
93.6
73.1
92.9
3
127
0.42
0.0007
0.47
95.6
91.1
-

The rougher flotation results represent the maximum metal recoveries obtainable using standard flotation methods for typical porphyry Cu systems.  The actual recoveries from a mine scale flotation plant will be lower than the rougher concentrate, as subsequent steps are taken to remove unwanted materials and increase the grade of the final concentrates.  Cleaner circuit kinetic tests and locked cycle flotation tests were conducted on rougher concentrates to get an idea of final concentrate grades and predicted metallurgy, using a standard 3 stage cleaning circuit.  The results are shown in the table below and show excellent recovery for Cu and Mo with good Au recovery in line with other porphyry Cu systems.  Further testing and optimization is anticipated to increase both recoveries and concentrate grades especially for sample 2.  Testing to further optimize gold recoveries is in progress using techniques such as gravity separation, magnetic separation, and producing a pyrite concentrate.

   Seel Predicted Third Cleaner Copper Concentrate Results based on Locked Cycle Tests


Sample
3rd Cleaner Concentrate
Recovery %
% Cu
% Mo
g/t Au
Cu
Mo
Au
1
26.4
2.5
12.6
88.9
85.8
59.1
2
23.1
4.4
9.2
86.4
91.6
47.0
3
31.4
-
28.1
89.5
-
69.0

 
Metallurgy testing was done on a single 323 kg composite sample of representative mineralization from the Ox deposit obtained from 2013 drill core.  A summary of the rougher circuit results at optimized test conditions are shown in the table below.

Ox Rougher Circuit Bulk (100kg) Flotation Tests at Optimized Conditions 


Sample
Test
Grind Size microns
Feed Grade % Cu
Feed Grade % Mo
Rougher Circuit Recovery %
 
Cu
Mo
Au
Ag
BF1
95
0.33
0.043
94.5
91.7
79.2
90.1
BF2
95
0.33
0.043
94.1
93.1
62.1
78.0
 
 
 
Average: 
94.3
92.4
70.7
84.1

Copper concentrates were produced from samples BF1 and BF2 based on only 4 open-circuit cleaner stages.  Sample BF1 produced a copper concentrate grading 24.5% copper, 4.0 g/t gold, and 107.1 g/t silver.  Sample BF2 produced a copper concentrate grading 23.6% copper, 3.3 g/t gold, and 97.7 g/t silver.  A molybdenum separate was made from the BF2 concentrate producing a second cleaner concentrate grading 51.6% molybdenum along with 113.3 ppm rhenium.  Assaying of the final concentrate products shows they are ‘clean’ with very low trace element concentrations that can pose problems or penalties at smelters (such as As, Sb, Bi, Hg). 

Exploration Potential

The West Seel deposit is over 800 metres wide at the south end and remains open in this direction.  West Seel also remains open to the north where hole S13-162 intersected 26 metres grading 0.39% copper equivalent starting at 50 metres depth followed by 305.2 metres of mineralization grading 0.57% copper equivalent starting at 144 metres depth.  The West Seel deposit still has very good potential for significant resource expansion.  The 2013 drilling at Seel focused on 3 objectives: 1) infilling and expanding the higher grade East Seel deposit which is being targeted as a near surface starter pit zone;  2) expanding near surface higher grade mineralization at West Seel which could be a second possible starter pit; and  3) expanding West Seel and delineating its extents.   The 2013 drill program was very successful at achieving the first 2 objectives.  Additional drilling in 2014 will be required to finish defining the extent of the West Seel zone.   

The Ootsa Property contains several good exploration targets that remain to be drill tested.  A map showing existing induced polarization (IP) geophysical coverage of the property is shown below.  IP has worked very well to outline both the Ox and Seel deposits, and several other promising IP targets have been identified.  The Company plans further drill testing at the main IP targets in 2014 and the IP coverage may be expanded to cover the Far East target.


Ootsa Property IP Chargeability at 100 Metres Depth Showing the Ox and Seel Deposit and Several Exploration Targets

Gold Reach has a surface soil sample database composed of samples taken by the Company and compiled historic soil samples that exceeds 7000 samples. A map showing the distribution of copper in soils is shown below. Strong copper in soil anomalies are associated with the Seel and Ox deposits, with smaller anomalies evident at the West Ox and Damascus zones, and numerous scattered anomalies over the area.


Copper in Soil Map, Ootsa Project

In 2013 a large lead in soil anomaly measuring 530 metres by 150 metres in size was identified east of the Damascus silver-lead-zinc vein (see below).   This anomaly correlates with a strong north-south linear, interpreted to be a fault that is parallel to the fault controlling the adjacent Damascus vein.   This zone has been termed the East Damascus Target, and the structural setting and large lead in soil anomaly make it a very good target for base metal silver vein mineralization.   


Lead in Soil Map, East Damascus Target

Conclusions

The Ootsa Property contains a large Cu-Mo-Au-Ag resource base that occurs near surface with a favorable open pit geometry and has excellent potential for expansion.   The resource sits adjacent to an operating mine in a stable jurisdiction favorable for mining and development.  During 2014 the Company will continue to advance the project toward preliminary economics, further remove project risk through additional exploration, metallurgy, baseline environmental studies, and First Nation consultation.

Gold Reach has the technical and financial resources to explore and expand copper – gold – molybdenum and silver resources on the Ootsa Property and unlock their potential and value for our shareholders.