Gold Reach has received approval from the Ministry of Mines to commence exploration activities on both the 100% owned Auro and 100% owned Ootsa projects (formally Ox and Seel). The Auro project is adjacent to the Richfield discovery, which is subject to a $550 million take over offer from New Gold (see news April 4, 2011).
The 2011 drill program at Auro will initially focus on three of ten geophysical and geochemical anomalies identified from the Company's 2010 field program (see news March 1, 2011). Camp construction will start next week, after which an initial 2,500 metres of drilling will commence.
The Ootsa project is 8 kilometres southeast of the producing Huckleberry mine and the property has two 43-101 resource calculations completed in 2008 on the Ox and Seel porphyry zones. In 2009 Gold Reach completed a property wide radiometrics and magnetometer airborne survey that was critical in identifying several promising and untested geophysical targets (see news February 8, 2011). Camp construction will commence the first half of June, followed by an initial 2,500m drilling program at the Seel Breccia. This drilling will target potential high grade copper-silver mineralization previously intersected in the steeply plunging Seel Breccia along the junction of the flanking Seel copper - gold porphyry zone at depth.
The company, pursuant to its stock option plan, has granted incentive stock options to its various directors, officers and consultants to purchase a total of 78,000 common shares in the capital stock of the company, exercisable for a period of five years, at a price of 50 cents per share, subject to the TSX Venture Exchange approval.
Technical information in this news release has been reviewed by Jim Cuttle, PGeo, a qualified person as defined in National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
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