March 22, 2012: Vancouver, British Columbia: Gold Reach Resources Ltd. (GRV: TSX-V) (“Gold Reach” or “the Company”) is pleased to announce the sale of the Company’s mineral interests known as the Auro and Auro South properties to New Gold Inc. (“New Gold”), both located southeast of New Gold’s Blackwater Gold deposit.
Under the terms of the definitive purchase agreement, Gold Reach has sold to New Gold a 100% interest in the approximately 23,000 hectare Auro and Auro South claims (“the Claims”) in consideration for a Cdn. $6,000,000 cash payment. Gold Reach will retain a 2% net smelter returns royalty (“NSR”) on the Claims and New Gold has committed to spend Cdn. $1,500,000 on exploration expenditures on the Claims over the next 3 years.
Dr. Shane Ebert, President of the Company, stated, “We are extremely pleased to have entered into this agreement with New Gold, a company that is extremely active in the belt and is rapidly expanding their Blackwater gold deposit. With the technical and financial resources of New Gold behind the Auro and Auro South properties we anticipate that they will be advanced at an accelerated pace and the 2% NSR retained by Gold Reach will ensure our shareholders benefit if a significant discovery is made. The sale of the Auro and Auro South properties puts Gold Reach in a strong financial position and allows the company to focus on its core asset which is the large Cu-Au porphyry system on the Ootsa property”.
The Company is in the process of planning a large exploration program at the Ootsa property which will focus on delineating and expanding the recently discovered zone of higher grade Cu-Au-Mo mineralization at the West Seel deposit. The last hole drilled during the 2011 drilling program at West Seel returned 566.7 metres grading 0.54% Cu Eq, including 124 metres grading 0.71% Cu Eq, and the hole ended in mineralization. Details of the proposed exploration program will be announced shortly.
The transaction is an Exempt Transaction under the policies of the TSX Venture Exchange.
About Gold Reach Resources
Gold Reach Resources Ltd. is a Canadian exploration company with an experienced board and management team that is actively involved in mineral exploration in British Columbia. The Company holds a 100% interest in the Ootsa Property, located adjacent to the producing Huckleberry Mine, and containing the Seel and Ox porphyry systems. The Seel porphyry contains a NI 43-101 compliant resource containing 214.78 million tonnes grading 0.17% Cu, 0.13 g/t Au, 0.017% Mo, and 2.17 g/t Ag (0.33% Cu Eq) in the inferred category plus an additional 28.13 million tonnes grading 0.22% Cu and 0.21 g/t Au (0.40% Cu Eq) in the indicated category. The resource contains 805 million lbs. of Cu inferred plus 136 million lbs. of Cu indicated, 897,694 ounces of Au inferred plus 189,924 ounces of Au indicated, 15 million ounces of Ag inferred plus 1 million ounces of Ag indicated, and 80 million lbs. of Mo inferred plus 4 million lbs. of Mo indicated. The Ox porphyry, located 4 km northwest of Seel, contains a NI 43- 101 compliant resource containing 16 million tonnes grading 0.3% Cu and 0.04% Mo in the inferred category.
Dr. Shane Ebert, P. Geo., the President of the Company, is the Qualified Person responsible for the preparation of this news release, and has approved all technical disclosure contained herein.
Shane Ebert, President/Director
For Further information, please contact:
S. Ebert direct line: 250 964-2699
Toll Free: 888-500-4587
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 that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements regarding New Gold’s exploration and development activities on the Auro and Auro South Properties, any future payments under the NSR royalty, and the Company’s plans with respect to the exploration and development of the Ootsa property. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.