News

January 13, 2014: Vancouver, British Columbia: Gold Reach Resources Ltd. (GRV: TSX-V) (Gold Reach and/or the Company) is pleased to announce an updated resource estimate for the Ox deposit.  The Ox deposit is located 4 kilometres northeast of the much larger Seel deposit, and is one of several mineralized zones located on the Company’s 100% owned Ootsa property, British Columbia.

OX RESOURCE HIGHLIGHTS

• Updated Global Resource at Ox contains 278.9 Million lbs. Cu Eq. measured and indicated and 97.4 Million lbs. Cu Eq. inferred at 0.2% Cu Eq. cut off.
• 95% of the global measured and indicated resource is contained within the open pit constrained resource at 0.2% Cu Eq. cut off.
• Open pit constrained resource contains 273.7 Million lbs. Cu Eq. in the Measured and Indicated category and 75.2 Million lbs. Cu Eq. inferred at 0.2% Cu Eq. cut off.
• Global resources at a 0.2% Cu Eq. cut off contain 39.5 million tonnes (0.32% Cu Eq.) in the measured and indicated categories plus 16.4 million tonnes (0.27% Cu Eq.) in the inferred category.
• Open pit constrained resources at a 0.2% Cu Eq. cut off contain 37.6 million tonnes (0.33% Cu Eq.) in the measured and indicated categories plus 12.2 million tonnes (0.28% Cu Eq.) in the inferred category.
• The majority of the deposit now sits in the measured and indicated categories providing a substantial improvement in confidence in the resource. 
• The resource update confirms the mineralized zone has a favorable open pit geometry, and the block model shows the highest grade zones are located close to surface.

The new independent mineral resource estimate study was conducted by Giroux Consultants Ltd. and follows up the mineral resource update on Ox completed by Giroux Consultants Ltd. and C. McDowell dated February 8 2013.   The new resource is based on 28,361 meters of drilling in 134 holes and was completed in accordance with Canadian Securities Administrators National Instrument 43-101 (“NI 43-101”) and the CIM Standards on Mineral Resources and Reserves, and has an effective date of January 9, 2014.  The resource estimate has been constrained by a conceptual pit shell in order to confirm reasonable prospects of economic extraction as set out in the CIM Definition Standards for Mineral Resources and Mineral Reserves and NI 43-101, and this is the first pit-constrained resource estimate for the Ox deposit. A technical report with details on the Ox resource estimate and pit constraints will be available shortly.

Contained metals in the global resource at a 0.2% Cu Eq. cut off are summarized in the table below.

OX GLOBAL RESOURCE CONTAINED METALS AT 0.2% CU EQ. CUT OFF

Using a 0.2% Cu Eq. cut off the new Ox global resource contains 174.3 million pounds of copper and 22.7 million pounds of molybdenum in the measured and indicated category plus 61.3 million pounds of copper and 7.2 million pounds of molybdenum in the inferred category.  The pit constrained contained metals at a 0.2% Cu Eq. cut off are summarized in the table below.

OX PIT CONSTRAINED CONTAINED METALS AT 0.2% CU EQ. CUT OFF

Using a 0.2% Cu Eq. cut off the new Ox pit constrained resource contains 174.2 million pounds of copper and 22.4 million pounds of molybdenum in the measured and indicated category plus 48.3 million pounds of copper and 5.6 million pounds of molybdenum in the inferred category.

Results of the new unconstrained resource estimate and the open pit constrained resource estimate are summarized in the tables below.  At a 0.2% copper equivalent (Cu Eq.) cut off the Ox deposit contains a measured plus indicated global resource of 39.5 million tonnes grading 0.20% Cu and 0.026% Mo (0.32% Cu Eq.) plus an inferred resource of 16.4 million tonnes grading 0.17% Cu and 0.020% Mo (0.27% Cu Eq.).
The pit constrained resource at a 0.2% Cu Eq. cut off contains a measured plus indicated resource of 37.6 million tonnes grading 0.21% Cu and 0.027% Mo (0.33% Cu Eq.) plus an inferred resource of 12.2 million tonnes grading 0.18% Cu and 0.021% Mo (0.28% Cu Eq.).

At a 0.2% Cu Eq. cut off 95% of the global measured and indicated resource is contained within the pit constrained resource, demonstrating the geometry of the near surface mineralized zone is favorable for potential exploitation by open pit methods.   The mineralized volume at Ox has increased 44% compared to the February 2013 resource estimate, largely as a result of expansion of the mineralized zone on the northeast side during the 2013 drill program (volume increased from 22,349,058 m3 to 32,107,234 m3).  Despite the large volume increase only a 9% global tonnage increase has been realized at a 0.2% copper equivalent cut off, largely due to a lowering of the average specific gravity of the deposit from 2.75 to 2.69, and lower metal price assumptions in the updated resource (copper decreased from $3.25 to $3.00/lb, gold from $1500 to $1300/oz, silver from $29 to $22/oz, molybdenum from $12 to $10/lb).

OX UNCONSTRAINED MEASURED PLUS INDICATED RESOURCE

OX UNCONSTRAINED INFERRED RESOURCE

OX OPEN PIT CONSTRAINED MEASURED PLUS INDICATED RESOURCE

OX OPEN PIT CONSTRAINED INFERRED RESOURCE

OX RESOURCES AT 0.2% CU EQ. DIVIDED BY CATEGORY

CuEq = Copper equivalent.   Metal price and recovery assumptions are discussed below.

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.

An image showing the conceptual pit and the Ox mineralized zone is available here: 
http://www.goldreachresources.com/_resources/maps/Ox_Constraining_pit_outline.jpg.
A cross section through the northern part of the Ox deposit showing the block model with Cu Eq. grades and the constraining pit outline is available here:
http://www.goldreachresources.com/_resources/maps/Ox_Resoure_Cross_Section.jpg.
The cross section illustrates that the mineralized zone starts very close to surface with most of the higher grade mineralization occurring within the upper portion of the deposit.

Dr. Shane Ebert, President of the company stated, “this new resource update at the Ox deposit is a big step forward in advancing the deposit and removing project risk.  The recent increase in drill density has resulted in a large increase in confidence in the mineral resource, with 39.5 million tonnes moved up to the measured plus indicated categories at a 0.2 % Cu Eq., cut-off, and of that 37.6 million tonnes or 95% falls within a hypothetical pit shell.  The block model shows much of the higher grade mineralization within the deposit occurs close to surface, and the pit constraints show the deposit has an excellent geometry for potential open pit exploitation.  These factors, along with the excellent metal recoveries achieved in recent test work, provide strong incentive to move forward with economic studies on the Ox deposit while we also advance the much larger Seel deposit”.

For more information on the Ootsa property please see our website at http://goldreachresources.com.

Resource Details  
The unconstrained resource estimation was carried out by Giroux Consultants Ltd of Vancouver, British Columbia and Independent Qualified Person Gary Giroux, P.Eng is responsible for the estimate.  Surface mapping and drill hole geology at the Ox deposit was used to establish geologic continuity of the mineralized zone and formed the basis for modelling. Geologic modeling was done using GemCom software and mineralized domains (solids) have been defined based on alteration type and grades > 0.15% Cu Eq.   All assays outside the solids were considered waste. 

Uniform down hole 5 m composites were formed from the drill data and a block model with blocks 10 x 10 x 5 m in dimension was superimposed over all of the mineralized solids.  Grades for Cu, Au, Mo and Ag were interpolated into each block by Ordinary Kriging.  Due to the poly metallic nature of the Ox deposit a copper equivalent based cut off was used for modelling.  As three year trailing average metal prices currently exceed the spot price for Cu, Au, Ag, and Mo due to a downturn in metal prices, prices near spot were used for the resource calculation. Copper equivalent values were calculated using metal prices of $3.00 lb for Cu, $1300 ounce Au, $22 ounce Ag, and $10 lb for Mo.   Recoveries used were obtained from recent metallurgical test work from Ox and assume 94.3% recovery for Cu, 70.7% recovery for Au, 84.1% recovery for Ag, and 92.4% recovery for Mo. An average specific gravity of 2.69 was used to convert volumes to tonnes based on 1054 specific gravity measurements conducted on drill core using the weight in air / weight in water method.

Pit Constrained Resource Details  
Moose Mountain Technical Services of Cranbrook, BC, provided engineering and open pit constraints for the Ox resource under the supervision of Independent Qualified Person Tracey Meintjes, P.Eng.  The constrained measured plus indicated and inferred mineral resource estimates are contained within a single resource-limiting open-pit shell that is up to 900 meters long by up to 600 metres wide, and extends to up to 250 metres deep.  The open pit was designed using a conventional Lerchs and Grossmann (LG) pit outline.

Parameters used to establish the conceptual pit are:  Maximum pit slope of 50 degrees, process recoveries of 90% for copper, 80% for molybdenum, and 75% for gold and silver, mining costs of $2.20 per tonne and processing costs of $10 per tonne. Metal prices for the limiting pit were set at $4.50 lb. Cu, $20 lb. Mo, $1600 oz Au, $30 oz Ag.

All of our recent news releases can be viewed on the Company’s website at  http://goldreachresources.com/news/2013/.

About Gold Reach Resources
The Ootsa property is an advanced stage exploration project containing the Seel and Ox porphyry systems both with compliant resource estimates open for expansion.  The Company has completed 134,878 metres of core drilling on the property to date, with 36,135 meters completed during 2013.   An updated resource on the Seel deposit is expected in the first quarter of 2014.  

Dr. Shane Ebert, P. Geo. is the Qualified Person responsible for the preparation of this news release.  Gary Giroux, P.Eng of Giroux Consultants Ltd has reviewed the portion of this news release pertaining to the resource estimate.

“Shane Ebert”

Shane Ebert, President/Director

 
For Further information, please contact:
Telephone: 604-718-5454
S. Ebert direct line: 250 964-2699
Toll Free: 888-500-4587
http://goldreachresources.com

Or
B&D Capital Partners
Don Mosher
Telephone: 604-685-6465
Don@bdcapital.com

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.
Safe Harbour Statement: The Company relies upon litigation protection for “forward-looking statements.” The Company undertakes no obligation to update these forward- looking statements in the managements beliefs, estimates obligations or other factors should change.