The biggest issue was the overburden but over the last two years they have slowly demonstrated the near surface aspect of one of their deposits. It is growing in wow factor. The geology suggests the silver content will increase in the faulted areas and the copper grades have two important zones where I expect to see some more +1% grades over long intervals. If we get 2 holes in that area extending the depth and width then this becomes a high grade starter pit. I would speculate an IRR of 28%!
Now, we have to keep in mind this is very early days for the development. It's all inferred and indicated. But, looking at the results it's becoming obvious that they need to accelerate the exploration and push the enviro front. At this point I would deem this mine-able. They only need 1 open pit of high grade to get this going. Give me a 15 year life of mine and I'd be happy to own a chunk. Some of the grades in the other deposits are also worth going after. The are at a bit of depth but with an anchor they should be mined at reasonable cost.
This one should come off the radar and join your investment list. While I expect the price to continue to drop like everyone else I do not see it losing more than 30 cents. The company has nothing for shares outstanding. There is an investor holding a rather large chunk of shares and he doesn't plan to sell them. He is primarily the one who drove the price up. While other retail are being forced off their investments or just loosing nerve, this guy doesn't need the money and can ride out the market changes that are coming. On an interesting side not the TSXV is just beginning to see what they done to it and are realizing that their days are numbered.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/19/13 -- Gold Reach Resources Ltd. (TSX VENTURE:GRV) (Gold Reach and/or the Company) is pleased to provide an overview of the company's 100% owned Ootsa Property, located adjacent to the producing Huckleberry Mine south of Smithers, British Columbia.
HIGHLIGHTS
-- Large Resource Base on the Property - At a 0.2% Cu Eq cut off the Ootsa
Property contains 463.5 million tonnes of inferred resources plus an
additional 67.8 million tonnes indicated.
-- Higher Grade Material - At a 0.4% Cu Eq cut off the Ootsa Property
contains 75.06 million tonnes of inferred resources plus an additional
25.98 million tonnes indicated with grades near or above 0.5% Cu Eq.
-- Near Surface Higher Grade Zones - Shallow higher grade zones that are
potentially open pit mineable occur at East Seel, Seel Breccia zone, and
Ox and could have potential to help accelerate pay back of capital
expenditures.
-- Contained Copper Equivalent - The property contains 3.26 billion pounds
of copper equivalent inferred plus an additional 0.58 billion pounds of
copper equivalent indicated.
-- Technical Report Available - The technical report supporting the Seel
and Ox resource estimates is complete and will be posted on Sedar and on
our website shortly (http://goldreachresources.com).
Resource Summary
Total resources for the Ootsa Property are summarized in the table below and are taken from recent resource updates conducted on the Seel and Ox deposits (previously released see January 29, 2013 and February 11, 2013 news releases). The table highlights the large resource base that now occurs on the Ootsa Property within the Seel and Ox deposits. At a 0.2% Cu Eq cut off property wide NI 43-101 compliant resources contain 463.5 million tonnes in the inferred category plus an additional 67.8 million tonnes in the indicated category. The tremendous rate at which resources have been increased over the past 2 years is illustrated in the graph available at http://goo.gl/WuzRC. Roughly 200 million tonnes of resources were added to the project following the 2011 exploration program and roughly 250 million tonnes of resources were added following the 2012 program. The Company anticipates that further significant resource increases are possible with continued exploration on the property.
Within this very large resource there is a substantial amount of higher grade material. At a 0.4% Cu Eq cut off the Ootsa property contains 75.06 million tonnes in the inferred category plus 25.98 million tonnes in the indicated category with average grades near or above 0.5% Cu Eq (see table below). Portions of these higher grade resources occur at or near surface in the East Seel, Seel Breccia Zone, and Ox deposits, and these near surface higher grade zones could be important for rapid pay back of capital expenditures in any future mining operation.
The near surface higher grade zone at East Seel (or Seel Cu-Au zone) was intersected in hole S11-90 which returned 194 metres grading 0.37% Cu and 0.42 g/t Au starting at 22 metres depth (previously released). To the north of East Seel, in the Seel Breccia zone, hole S06-42 returned 138 metres grading 0.85% Cu and 23 g/t Ag starting at 22 metres depth (previously released). At the Ox deposit hole Ox07-2 intersected 112.5 metres grading 0.36% Cu and 0.029% Mo from 30 metres depth, and hole Ox07-22 intersected 66.4 metres grading 0.36% Cu and 0.054% Mo from 6.1 metres depth (previously released). Some areas of near surface higher grade mineralization are also known at West Seel including hole S12-108 which intersected 316 metres grading 0.56% Cu Eq starting at 24 metres down hole, including 30 metres grading 1% Cu Eq starting at 74 metres down hole.
Understanding the near surface higher grade zones of mineralization on the Ootsa Property will be important as the company continues to advance the project and evaluate the economics.
Summary of Resources on the Ootsa Property
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Grade greater than Cut-off
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Cut-off Tonnes
Deposit Class (CUEQ) (x1000) Cu (%) Au (g/t) Mo (%) Ag (g/t) CuEq (%)
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Seel Indicated 0.20 67,760 0.21 0.17 0.015 2.02 0.39
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Total Indicated 0.20 67,760
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Seel Inferred 0.20 410,880 0.16 0.11 0.018 1.95 0.31
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Ox Inferred 0.20 52,650 0.21 0.03 0.022 1.25 0.32
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Total Inferred 0.20 463,530
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Seel Indicated 0.40 25,980 0.30 0.26 0.018 2.63 0.55
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Total Indicated 0.40 25,980
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Seel Inferred 0.40 67,160 0.25 0.20 0.029 3.00 0.51
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Ox Inferred 0.40 7,900 0.31 0.05 0.031 1.50 0.46
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Total Inferred 0.40 75,060
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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 total contained metals on the Ootsa Property are summarized in the table below. The property contains 1.79 billion pounds of copper in the inferred category plus 0.31 billion pounds of copper in the indicated category along with 1.5 million ounces of gold inferred plus 0.37 million ounces of gold indicated. Molybdenum totals 188.6 million pounds inferred plus 22.4 million pounds indicated, and silver totals 27.9 million ounces inferred plus 4.4 million ounces indicated. There is a considerable amount of silver known to occur within the high grade silver-base metal veins at the Damascus prospect, but this area currently does not contain a compliant resource estimate. On a copper equivalent basis the property contains 3.26 billion pounds of copper equivalent inferred plus another 0.58 billion pounds of copper indicated.
Ootsa Property contained metals at 0.2% Cu Eq cut off
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Element Deposit Contained metal
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Copper - indicated Seel 313,708,980 pounds
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Copper - inferred Seel + Ox 1,793,090,647 pounds
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Gold - indicated Seel 370,351 ounces
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Gold - inferred Seel + Ox 1,503,893 ounces
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Molybdenum - indicated Seel 22,407,784 pounds
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Molybdenum - inferred Seel + Ox 188,586,506 pounds
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Silver - indicated Seel 4,400,640 ounces
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Silver - inferred Seel + Ox 27,875,614 ounces
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Cu Eq - indicated Seel 582,602,392 pounds
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Cu Eq - inferred Seel + Ox 3,259,524,380 pounds
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Exploration Targets to Test
The Ootsa Property contains numerous exploration targets located within a few kilometres radius of the known deposits, and the property has a lot of exploration upside. A map showing some of the exploration targets on the property is available at the flowing link: http://goo.gl/fJ8d4. There are 5 geophysical chargeability anomalies surrounding the Ox and Seel deposits, and 13 magnetic anomalies. The Seel deposit contains overlapping chargeability and magnetic anomalies and 2 of the untested chargeability anomalies have similar features. Damascus style high grade silver base metal veins have been encountered in drilling at both the Seel and Ox deposits, and this style of mineralization could be widespread across the property. Known or interpreted faults with potential to host silver base metal veins are shown on the Exploration Target map at the link above.
Plans for 2013
Funding and planning for the 2013 exploration season at Ootsa are in progress. Detailed plans will be announced when they are finalized. The Company anticipates another aggressive exploration program at Ootsa in 2013 to fill in and expand known deposits, and further explore and drill test the highest priority exploration targets surrounding the known zones of mineralization. The 2013 program will likely include substantial drilling, extending the geophysical coverage over the area, a large surface exploration program, additional metallurgy, and possibly baseline environmental, geotechnical, and engineering studies.
For more information please see our website at http://goldreachresources.com. All of our recent news releases can be viewed on the Company's website at http://goldreachresources.com/news/2013/.
Seel and Ox Technical Report
The Technical Report supporting the Seel and Ox resource estimates is now complete and will be posted on Sedar and on the company's website (http://goldreachresources.com) under the Technical Report tab shortly.
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