In March 2012 Gold Reach sold its Auro and Auro South properties to New Gold Inc. The properties cover roughly 23,000 hectares and are located adjacent to New Gold’s large Blackwater Gold deposit. New Gold has purchased a 100% interest in the claims by paying $6,000,000 Canadian to Gold Reach. Gold Reach retains a 2% net smelter returns royalty on the Claims and New Gold has committed to spend $1,500,000 on exploration expenditures on the Claims over the next 3 years.
The Blackwater deposit contains an indicated resource of 5.5 million ounces of gold and an inferred resource of 2.3 million ounces of gold (New Gold March 7, 2012 news release). New Gold has acquired a large land position in the district and is aggressively expanding the Blackwater deposit and exploring the district.