November 14, 2017, Vancouver, British Columbia - Gold Reach Resources Ltd. (the “Company” or “Gold Reach”) (TSX-V:GRV) is pleased to provide a summary of exploration targets on the Company’s Ootsa Project that have similar characteristics as New Nadina Explorations Ltd. (New Nadina, TSX-V: NNA) Silver Queen deposit.
Recent drilling success by New Nadina at the Silver Queen deposit, located 40 kilometres northeast of the Ootsa Property, has prompted the Company to review the known silver vein targets at Ootsa. Portions of the Ootsa property have similar geology as the Silver Queen deposit, and are considered prospective for the same style of mineralization. Both properties contain zones of porphyry style mineralization with peripheral and locally overprinting high-grade vein mineralization. The average width of the historically mined veins at Silver Queen range from 0.9 to 1.2 metres with local zones to 4.6 metres. Silver Queen mineralization consists dominantly of quartz and carbonate with sphalerite galena and chalcopyrite.
High grade precious-base metal veins are widespread on Gold Reach’s Ootsa property and have been intersected in drilling at the Seel and Ox deposits, and occur peripheral to the main porphyries at the Captain Mine and the Damascus Silver Vein. A map of the Ootsa Property showing the location of the Seel Cu-Au porphyry deposits, the Ox Cu-Mo porphyry deposit, and other mineralized zones and exploration targets is available here (Ootsa Property Map). The Captain Mine, located west of the Seel Deposits, contains two underground adits which follow a high-grade quartz-carbonate vein with galena, sphalerite, and pyrite that is up to 3 metres wide. One of the adits extends about 100 metres into the hillside and remains in good condition. A grab sample of sulfide rich material collected from the adit by Gold Reach in 2013 returned 2220 g/t Ag (65 ounces per tonne), 9.2% Pb, and 0.27% Cu. Other mineralized veins are known to occur immediately east and west of the Captain Mine. The Captain Mine occurs within a large and highly altered zone containing Bulkley Suite rocks that have intruded into Kasalka Group volcanic rocks, an identical geological setting as the Silver Queen deposit. The zone has never been drilled or systematically explored and it remains an excellent target for high grade silver mineralization.
Photographs of the Captain Mine and silver-base metal mineralization from other zone on the Ootsa property are available here (Ootsa Photos of Silver Mineralization) and in the photo gallery on our website at www.goldreachresources.com.
A second high grade silver-base metal vein target at Ootsa occurs at the Damascus Vein, located east of the Seel Deposits. Damascus contains a quartz-carbonate base-metal vein system 0.9 to 3.8 metres wide that has been drilled to a depth of around 100 metres and remains open at depth. The zone contains a historic resource of 196,000 tonnes grading 411 g/t Ag and 7% combined Pb + Zn.
This resource is historical and is not compliant with NI 43-101. It was 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 Damascus Vein is localized along the Damascus Fault, a structure that has been traced for 4 kilometres in a north-south direction and makes a very prominent linear structure on geophysical resistivity surveys marking the contact between resistive and conductive rocks. Most of the Damascus Fault structure remains untested by drilling. Select historic drill holes from Damascus are shown in the table below.
Select drill intercepts from the Damascus Zone.
|Hole||Zone||Width (m)*||Ag g/t||Au g/t||Pb%||Zn%|
*Width refers to drill hole intercepts, the true width of the veins have not been estimated. The drill results are historic in nature and are reported in a 1982 Assessment Report. The results have not been verified by Gold Reach.
A kilometre scale zone of strong clay alteration with a coincident lead in soil anomaly occurs within inferred Kasalka Group volcanic rocks and porphyritic intrusions at the East Damascus Target. This zone represents a large under explored area with potential for Silver Queen style mineralization.
Plans for 2018
The Ootsa property contains numerous drill ready exploration targets along with targets that require surface work prior to drill testing. There are high priority Cu-Au porphyry drill targets surrounding the Seel Deposits, in addition to untested silver vein targets. The large zone of highly altered rocks at the Captain Mine has not seen systematic exploration and has never been drill tested. Gold Reach has never drilled the Damascus Vein which has not been explored at depth. Gold Reach is in the process of applying for exploration permits for the Ootsa project including the Captain Mine and Damascus areas. Proposed exploration would include re-establishing historic road access to Captain, completing mapping and surface sampling, conducting geophysical surveys, and drill testing.
Plans for a 2018 exploration program at Ootsa will be announced once they are finalized and permitting is in place.
About Gold Reach Resources
Gold Reach Resources owns a 100% interest in the Ootsa Property, an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry copper mine. The property contains NI 43-101 compliant resources of 224 million tonnes in the Measured and Indicated categories with contained metals of 1.1 billion pounds of copper and 1 million ounces of gold as summarized in the table below.
Ootsa Project Pit Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off Value
On February 9, 2016, the Company announced a positive Preliminary Economic Assessment (PEA) for the Ootsa Property with potential for low capital cost, low riskand rapid pay back utilizing existing infrastructure in the district with a contract mining and toll milling scenario. The study recommends that Gold Reach continue to advance the Ootsa Project with extended and advanced technical studies with the intention of moving the project toward a production decision.
The current technical report supporting the resource statement and PEA is available on SEDAR or the Company’s website at www.goldreachresources.com and has an effective date of January 2016. The resource estimate uses $8.50 per tonne NSR cut-off value. 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. Copper Equivalent (CuEq) calculations are based on base case metal price (US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and US$17/oz Ag) and process recovery assumptions, and take into account smelter payable rates and refining costs. M&I = measured and indicated.
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.
President and Chief Executive Officer
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.