Mineral Resource Evaluation Report Completed - exploration shaft planned for down dip extension of the Daye Gold Mine - China
February 13 2006 - 2:36AM
PR Newswire (US)
VANCOUVER, Feb. 12 /PRNewswire-FirstCall/ -- Goldrea Resources
Corp. (GOR-TSX.V, PINKS: GORAF) reports the company has entered
into a Letter of Intent with Rushan City to purchase up to a 100%
interest in their operating 1750 TPD Daye Gold Mine located
approximately 30 km northwest of Rushan City, Shandong Province,
China. Goldrea currently has the option to earn a 74% interest in
mineral licenses along strike and down dip from the Daye Gold Mill
and open pit. Exploration drilling by Goldrea has identified
several favorable intersections on the down dip extensions of the
Daye Ore body at Pengjiakuang, Shandong Province, China. These down
dip extensions are on a gently dipping structural breccia which
passes out of Daye Mining Company mining license and onto the
Goldrea Rushan Joint Venture Exploration Licenses. The above
mentioned Letter of Intent is intended to amalgamate these licenses
into one package 100% owned by Goldrea. The agreement is depending
on due diligence evaluations of all the assets of the Daye Mining
Company and its subsidiaries. At the present time mining is
continuing at the Daye Gold Mine under the control and direction of
the Daye Gold Mine, the Chinese owned mining company. The Daye Gold
Mining Company is also Goldrea's Joint Venture Partner in their
Exploration Licenses. A "Mineral Resource Evaluation Report"
qualifying under NI 43-101 was completed by N.Tribe, P.Eng. and
submitted to the company in January. Resource estimates address
mineral values in sericite as well as in gold. The deposit is
estimated to contain 147 million tonnes of sericitic resource at a
grade of 20% sericite, as indicated by the drilling completed to
date. The Daye Gold Mine has a contract to sell their sericite
product into the plastics industry at US$187.50 per tonne and is
working to expand these contracts to accommodate the full
production from the plant. Although accurate assaying methods are
not available for measuring sericite, the past experience of the
local geologists based on visual estimates and the recoveries of
the sericite in the plant, puts the percentage of sericite in the
deposits at 20% sericite. These values have been consistent
throughout those portions of the deposit mined to date. The gold
values are less consistent than the sericite and a higher density
of drilling will be required to define the gold bearing portions of
the deposits well enough to design a mining plan based on which
parts of the breccia contain the best values in gold. The inferred
resource estimate for the gold mineralization based on wide spaced
drill holes puts the tonnage at 920,600 tonnes at 2.74 grams per
tonne gold. The qualifying report will be published on the company
website (http://www.goldrea.com/) and on Sedar within the next few
days. Gold mineralization has been found to continue in the down
dip extensions of the structural breccia mined in the open pit and
a gold grade of 8 grams per tonne gold over 4 meters was
intersected by diamond drill hole GZK 801. Several other favorable
intersections in the down dip extensions of the ore body were also
identified. The intersection in diamond drill hole GZK 801 is 600
meters down dip and to the south of the existing open pit and 350
meters down dip from underground mining currently operating in the
Daye Gold Mine. Plans are underway to drive an exploration shaft
into this down dip mineralization. The planned depth of the shaft
is 300 metres. This shaft will allow for lateral development along
strike and provide drill access for definition drilling of the gold
mineralization discovered in the exploration drilling. Lateral
development off the shaft will initially be driven 250 meters
either way from the shaft. The shaft and lateral development will
provide access for definition drilling of the favourable
intersections in holes GZK 801 (8 grams over 4.0 meters), and in
GZK 802, GZK 806, and GZK 813 to the west and GZK 810 and GZK 811
to the east. The shaft will be 300 meters in depth and will be
driven well below the mineralized structural breccia horizon in
order to provide a second definition drilling access below the
mineralization and further to the south. Preliminary conceptual
plans are for a 2.8 X 3.3 metre 4 compartment shaft equipped with a
track fitted cage for hoisting the development muck from the
lateral underground headings. This shaft will also facilitate
ventilation in later mine designs. The definition drilling is
initially planned for 25 meter intervals and will consist of three
hole fans from drill stations cut into the drift 40 meters above
the known mineralization. This will require 22 fans of 3 - 50 meter
holes for 3,300 meters of definition drilling. Engineering design
and environmental permitting work has commenced for a 150,000 tonne
bulk test to confirm the grade and recoveries of the sericite. The
product recovered from this bulk testing will be used to provide
process samples for testing by the end user. Our marketing team is
presently at work identifying those end users and their needs in
terms of our product. The surface drill will continue to explore
the numerous targets along the strike in the structural breccia as
mapped on surface. Drill Results on diamond drill holes GZK 816 and
GZK 817 did not return significant results. A second drill is being
sought to begin work on the Langiazhaung concession 4 km north west
of Rushan City. The structure at Langiazhaung has been worked by
artisanal gold miners in the past but has stood idle for some time.
The structure is marked by eleven abandoned shafts and dumps
containing massive sulphide mineralization with gold values up to
6.0 gpt gold. Drilling is expected to begin as soon as the
equipment and crews can be organized. Norm Tribe, P.Eng.,
consulting geologist, is presently in China working to coordinate
these plans for the Langiazhaung property and the driving of the
shaft on the company's exploration license adjacent to the Daye
Mine. Also planned for the immediate future are Geophysical and
Geochemical surveys on the Majiakuang License located 10 km to the
southeast of the Daye Mine. A belt of gold deposits are being
worked to the north and east of this license and the structure
appears to pass onto and through the property. The license is on
agriculturally active land and outcrops are virtually non-existent.
Initially, I.P. surveys and soils geochemistry surveys will be
conducted to test for possible extensions to this known gold belt
into the license area. These surveys will be conducted by the 3rd
Brigade, the Chinese government's Geological, and Geophysical
Service. The people of this service are familiar with the geology
of the area and have completed numerous surveys in the area in the
past. Both the Langiazhaung License and the Majiakuang License are
part of the existing Goldrea Resources Corp., City of Rushan, Joint
Venture agreement whereby Goldrea can earn up to 74% interest. The
remaining 26% is included in the above mentioned Letter of Intent.
Norm Tribe, P.Eng., is the qualified person under NI 43-101 and is
the engineer supervising the ongoing exploration and development in
China. ON BEHALF OF MANAGEMENT "Larry W. Reaugh" -----------------
Larry W. Reaugh, President and C.E.O.
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The TSX-Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. 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 Toronto Venture Exchange, the British Columbia Securities
Commission and the US Securities and Exchange Commission.
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GOLDREA RESOURCES CORP. 2A 15782 Marine Drive, White Rock, BC
CANADA, V4B 1E6 Telephone: 604-531-9639 Facsimile: 604-531-9634
Email: Visit http://www.goldrea.com/ for more information
DATASOURCE: Goldrea Resources Corp. CONTACT: GOLDREA RESOURCES
CORP., 2A 15782 Marine Drive, White Rock, BC, CANADA, V4B 1E6,
Telephone: (604) 531-9639, Facsimile: (604) 531-9634, Email: ,
Visit http://www.goldrea.com/ for more information
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