August 10, 2015: Vancouver, BC – Gold Reach Resources Ltd. ("Gold Reach" or the "Company") (GRV: TSX-V) announced today that as a result of a review by the British Columbia Securities Commission, the Company is issuing this news release to clarify its technical disclosure regarding resource estimates and an exploration target at its Ootsa Property located south of Smithers, British Columbia contained in certain new releases, in its corporate presentation, and on its website.
Disclosure of Mineral Resources
In the Company’s news release dated February 24, 2014 and subsequent news releases, the Company disclosed its pit-constrained combined measured and indicated resource estimates without complying with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) because it only disclosed measured and indicated resources together, and did not report the individual measured and indicated classes separately.
In addition, in the Company’s news release dated May 10, 2014 under the heading “About Gold Reach Resources” and in subsequent news releases, the Company reported resource estimates that do not comply with NI 43-101 because it did not report measured and indicated resources separately, and did not state the gradeand the tonnage quantity for each category of the mineral resources.
The Company wishes to restate its disclosure of resources by disclosing the individual categories of measured and indicated resources, and the complete tonnage and grade information as follows:
Large Pit Constrained Resource Base Defined on the Property –At a 0.2% copper equivalent cut off the Ootsa Property contains measured, indicated, and inferred resources at its Seel and Ox deposits as shown in the Table below. The current technical report supporting this resource statement is available on SEDAR and uses a base case cut off of 0.2% copper equivalent. Resources are also stated at a 0.4% copper equivalent cut off in the table to illustrate the higher grade portion of the resource.
Summary of Open Pit Constrained Resources on the Ootsa Property
|Grade > Cut-off|
|Cu (%)||Au (g/t)||Mo (%)||Ag (g/t)||CuEq (%)|
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. The effective date of the resource estimate is January 2014.
Disclosure of an Exploration Target
In the corporate presentation entitled “Ootsa Project: Seel/Ox Copper Gold Molybdenum Deposits – Ootsa Project Exploration Targets” dated March 2015, the Company reported an exploration target that is contrary to NI 43-101 because it used a fixed tonnage estimate instead of using a range of tonnes, lacked a basis for estimating a grade range, and did not provide a reasonable basis for a tonnage-range estimate.
The Company wishes to retract its previous disclosure of the Ootsa project exploration target that was not complaint with NI 43-101 and contained in its corporate presentation and on its website, and cautions investors not to rely on such disclosure. The Company has updated its corporate presentation on its website, and removed the statement of target size potential.
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 & CEO
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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, that the Offering will not complete, 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.