Gold Reach Resources is pleased to announce the discovery of a new mineralized zone at Seel along with drilling results from holes 91 to 96 at the company's Seel Property, located adjacent to the producing Huckleberry Mine. Significant results are summarized in the table below.
Drill holes 91 and 95 have intersected a new style of Cu-Au-Mo-Ag mineralization that has not been seen previously on the property. This new discovery located 250 metres west of the Seel Cu- Au zone, occurs below and adjacent to shallow Cu-Mo mineralization first identified by Gold Reach during a 2005 drilling program. The new style of porphyry mineralization occurs within a distinctive intrusive host rock containing strong biotite alteration and a pyrrhotite-pyrite-chalcopyrite- molybdenite sulfide assemblage. The new zone along with the adjacent and overlying zones of mineralization, has been named the West Seel Deposit. Hole 95 returned 316.8 metres grading 0.16 g/t Au, 0.23% Cu, 0.02% Mo and 3.2 g/t Ag (0.45% Cu Eq.) from 241 metres to the end of the hole at 557.8 metres. Hole 91 returned 52.4 metres grading 0.17 g/t Au, 0.18% Cu, 0.035% Mo and 1.7 g/t Ag (0.46% Cu Eq.), from 609 meters depth to the end of the hole at 661.4 metres. Holes 91 and 95 both ended within the new mineralized intrusive. Holes 91 and 95 show that mineralization within the new discovery is very continuous and the zone contains significant amounts of gold, silver and molybdenum in addition to copper.
Summary of select drill intercepts - Seel Property
|Drill Hole||From (m)||To (m)||Width (m)*||Au g/t||Cu %||Mo%||Ag g/t||Cu Eq.%**|
*Width refers to drill hole intercepts, true widths have not been determined.
**Cu Eq. (copper equivalent) has been used to express the combined value of gold, copper, silver and molybdenum as a percentage of copper and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $2.50/lb copper, $1200/oz gold, $15/oz silver and $10/lb molybdenum using the formula CuEq.% = Cu% + (Au g/t x 0.701) + (Mo% x 4.01) + (Ag g/t x 0.0087).
Holes 97, 98, 99 and 100 have all intersected the new mineralized intrusive and have traced the West Seel Deposit over a strike length of 600 metres, to depths of 500 meters and over widths up to 200 metres, with the zone remaining open in all directions. Complete assay results for holes 97 to 100 are expected shortly.
The company is extremely excited by the discovery of the polymetallic West Seel Deposit, a discovery that was made near the end of the 2011 drilling program. The zone already shows potential to host a large resource and remains wide open for expansion.
Holes 92 and 93 tested portions of the Seel Breccia and intersected narrow zones of copper-silver mineralization. Hole 94 tested a geophysical and copper-in-soil anomaly located 1.2 kilometres northwest of the Seel zone. This hole encountered widespread hydrothermal alteration and intrusive rocks but returned no significant assays.
A map showing the location of the 2011 drill holes at Seel is available on our website at www.goldreachresources.com.
All drill core is logged, photographed, and cut in half with a diamond saw. Half of the core is bagged and sent to SGS Mineral Services for analyses while the other half is archived and stored on site for verification and reference purposes. Gold is assayed by standard fire assay methods with additional elements analyzed by Induced Coupled Plasma (ICP). Duplicate samples, blanks, and certified standards are included with every sample batch and then checked to ensure proper quality assurance and quality control.
Dr. Shane Ebert, a qualified person under NI 43-101 has approved this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
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