Goldrea China Update
March 15 2012 - 11:00AM
Marketwired
Larry W. Reaugh, President and Chief Executive Officer of Goldrea
Resources Corp. (TSX VENTURE:GOR)(PINKSHEETS:GORAF)(FRANKFURT:GOJ)
("Goldrea" or the "Company") provides the following updated of the
Company's activities in China.
On November 11, 2011, Qingdao Kingking Applied Chemistry Co Ltd.
(herein QKAC or Kingking) purchased an 80% interest in Daye Mining
Company ("Daye") from Rushan City. Daye is Goldrea's Chinese
Partner and owns the Daye Mining and Milling Facility adjoining
Goldrea's holdings.
Kingking, founded in 1997, is a large Chinese conglomerate based
in Qingdao, Shandong Province, employing 3-4,000 people and doing
business internationally. It is engaged primarily in oil
exploitation and refining, and the manufacture and sale of
polymer-based compounded wax products, standard wax products,
glassworks, epoxy resin-based compounded products and other similar
items. It is a major supplier to Ikea and Wal-Mart. Annual sales
are reported to be between US$50 - 100 million. Kingking's website
is: http://www.chinakingking.com.
It should be noted that this purchase transaction does not
affect Goldrea's 90% interest in Rushan Goldrea Gold (RGG) or the
resources down-dip from the Daye Mine, including the Golden Rose
Mine.
Late last year, Kingking began efforts to reopen an underground
iron pyrite mine owned by Daye, but some distance from the Daye
Mining Complex. The mine had been flooded and they pumped it out,
and on January 11, 2012 lowered five people down the shaft. All
five perished, apparently overcome by sulfur dioxide (SO2) gas.
Because of these multiple fatalities, the local government
safety bureau has closed all of the mines operated by Daye,
including Golden Rose, pending their evaluation of safety practices
and working conditions. It is not known when the evaluation will be
completed.
Before Kingking's acquisition of Daye, Daye had installed and
was operating a blast furnace that produced pig iron from toll
ores. The Daye flotation mill was used to process gold ores from
Daye, Golden Rose, and also toll ores. This mill is now being used
to upgrade iron ore, a common practice in China, although unusual
in the West.
The Golden Rose Mine has 46,800 tons of mineralized material in
stockpile at the Daye Mill. This material will be processed when
60,000 tonnes have been accumulated. To date, Golden Rose has
completed a total of 8,780 m of horizontal development with gold
grades as high as 20 grams / tonne.
The Company retained Deloitte & Touche Corporate Finance
Canada in the summer of 2011, to act as intermediary in obtaining
Financing or alternatively a Joint Venture Partner to further
develop the Chinese asset (see news release dated June 28,
2011).
In the course of Deloitte's efforts and the work of other
agents, five significant Chinese mining companies have shown
interest in Goldrea's 90% owned, 174,000 oz, indicated, gold
resource.
The resource is located down dip from the Daye open pit mine and
mill. Once the safety inquiry is completed and Daye resumes
operation, Goldrea will contact the new owners (QKAC) in regards to
the Goldrea resource as a potential Joint Venture or sale to
QKAC.
About Goldrea Resources Corp.:
Goldrea Resources Corp. is a mineral exploration and development
company that is engaged in the acquisition, exploration and
development of mineral properties in North America and China.
This press release was reviewed by Paul L. Blair, Chief
Operating Officer, and a "Qualified Person" as defined by NI
43-101.
GOLDREA RESOURCES CORP.
Larry W. Reaugh, President and Chief Executive Officer
This news release may contain certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical fact, included herein are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the
Company's documents filed from time to time with the TSX-Venture
Exchange, the British Columbia Securities Commission and the US
Securities and Exchange Commission.
The TSX-Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Goldrea Resources Corp. Larry W. Reaugh President and
Chief Executive Officer 604-531-9639 604-531-9634 (FAX)
604-531-9634 www.goldrea.com