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Gold Reach Resources Ltd (3)
Symbol GRV
Shares Issued 36,575,090
Close 2014-08-29 C$ 0.57
Market Cap C$ 20,847,801
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Gold Reach drills 73 m of 0.96% CuEq at West Seel

2014-09-02 09:12 ET - News Release

Dr. Shane Ebert reports

GOLD REACH INTERSECTS 73 METRES OF 0.96% COPPER EQUIVALENT WITHIN 207 METRES OF 0.65% COPPER EQUIVALENT AT WEST SEEL; NEW BRECCIA ZONE DISCOVERED

Gold Reach Resources Ltd. has received assay results for holes S14-200 and S14-201 from the West Seel deposit. The West and East Seel deposits are located four kilometres south-southwest of the company's Ox deposit, and all three deposits occur on the company's 100-per-cent-owned Ootsa property, located south of Smithers, B.C., adjacent to the operating Huckleberry mine.

Highlights:

  • Hole S14-200 hit high grades and successfully filled in a gap between previous widely spaced intercepts in the central part of the West Seel deposit:
    • Hole S14-200 intersected 207 metres of 0.65 per cent copper equivalent from 324 to 531 metres depth, including 73 metres grading 0.96 per cent copper equivalent.
  • Long mineralized intercept:
    • Hole S14-201 intersected 752 metres of 0.41 per cent copper equivalent from 76 to 828 metres depth. This hole successfully extends mineralization hundreds of metres to the north.
  • New breccia discovery:
    • Hole S14-201 intersected a new breccia zone over a cumulative thickness of 321 metres, and the hole ended in breccia. The breccia contains variably rounded clasts in a hydrothermal and intrusive matrix containing chalcopyrite and molybdenite, and the highest-grade zone of mineralization in the hole occurred within the breccia.

The 2014 drilling program at the Ootsa project is currently focused on delineating the extent of the large West Seel deposit.

West Seel drill results

An updated drill hole location map for the Seel deposit is available at the company's website.

Hole S14-200 was drilled toward the northeast at an angle of minus 50 degrees and targeted a gap in higher-grade mineralization within the central part of the West Seel deposit. The hole filled in this gap and successfully extended the higher-grade zone between previous widely spaced drill intercepts. As expected, the hole intersected modest grades in its upper portions including 89 metres grading 0.19 per cent copper, 0.09 gram per tonne gold, 3.04 g/t silver and 0.010 per cent molybdenum (0.32 per cent copper equivalent) from 187 to 276 metres depth. This was followed by 207 metres grading 0.31 per cent copper, 0.24 g/t gold, 4.45 g/t silver and 0.034 per cent molybdenum (0.65 per cent copper equivalent) from 324 to 531 metres depth, including 73 metres grading 0.45 per cent copper, 0.31 g/t gold, 6.32 g/t silver and 0.059 per cent molybdenum (0.96 per cent copper equivalent) from 366 to 439 metres depth. This high-grade interval should help to significantly increase grades in that part of the deposit.

     SUMMARY OF SELECT DRILL INTERCEPTS -- WEST SEEL HOLES S14-200 AND 201

Drill hole  From (m)  To (m)  Width (m)*  Cu %  Au g/t  Ag g/t   Mo %  CuEq %**

S14-200       187.0   276.0       89.0    0.19    0.09    3.04  0.010    0.32
S14-200       324.0   531.0      207.0    0.31    0.24    4.45  0.034    0.65
including     366.0   439.0       73.0    0.45    0.31    6.32  0.059    0.96
S14-201        76.0   828.0      752.0    0.20    0.10    3.22  0.027    0.41
including     650.0   710.0       60.0    0.27    0.16    2.95  0.051    0.61

*Width refers to drill hole intercepts; true widths have not been determined.
**CuEq (copper equivalent) has been used to express the combined value of 
  copper, molybdenum, gold and silver 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 $2.50 (U.S.) per pound of copper, $1,200 per ounce of 
  gold, $15 for silver and $10 per pound of molybdenum, using the formula CuEq
  per cent equals Cu per cent plus (Au g/t times 0.701) plus (Ag g/t times 
  0.0087) plus (Mo per cent times 4.01).

Hole S14-201 was drilled toward the north at an angle of minus 58 degrees and successfully extended mineralization to the north. The hole is shown on cross-section B-B' available at the company's website. Hole S14-201 intersected a new breccia zone over a cumulative thickness of 321 metres, and the hole ended in breccia at 951 metres depth. The breccia contains sedimentary and intrusive clasts in a hydrothermal and intrusive matrix, which contains sulphides including chalcopyrite and molybdenite. Photographs of the breccia in hole S14-201 are available at the company's website. Photographs of the same breccia zone encountered again in hole S14-204 are available at the company's website. Hole S14-201 intersected 752 metres of continuous mineralization grading 0.2 per cent copper, 0.1 g/t gold, 3.22 g/t silver and 0.027 per cent molybdenum (0.41 per cent copper equivalent) from 76 to 828 metres depth, including a higher-grade interval associated with the new breccia discovery which returned 60 metres grading 0.27 per cent copper, 0.16 g/t gold, 2.95 g/t silver and 0.051 per cent molybdenum (0.61 per cent copper equivalent) from 650 to 710 metres depth.

Hole S14-201 has successfully extended mineralization hundreds of metres to the north at depth. Holes S14-203 and 204 were also targeted to extend mineralization to the north and better define the new breccia discovery on section B-B', and both holes intersected smaller intervals of breccia. Results from these holes are pending.

Dr. Shane Ebert, president of Gold Reach, commented: "We are very excited to have drilled into a large zone of mineralized breccia containing rounded milled clasts of sedimentary rocks, intrusive rocks and quartz veins in a hydrothermal and intrusive matrix. Large breccia zones in porphyry deposits can host higher-grade mineralization, and our drilling is currently focused on understanding the geometry and extent of this new breccia discovery, and determining if it can help add higher grades to the deposit."

Drilling update

One drill is currently active on the Ootsa property, working on the West Seel deposit. To date, 10 holes have been completed during 2014 (holes S14-200 to 209), and the drill is currently working on hole S14-210. Assay results for holes S14-200 and 201 have been received and released. Samples from holes S14-202 to S14-209 have been sent to the lab, and assay results will be released when received and interpreted.

Additional information is available on the company's website.

Gold Reach annual general meeting -- Sept. 5

The company will hold its annual general meeting at the Coast Inn of the North, 770 Brunswick St., Prince George, B.C., on Friday, Sept. 5, 2014, at 11 a.m. Pacific Time. The meeting will be broadcast by conference call. The conference call will open at 11 a.m., the call-in number is 1-888-884-4538, and the guest code is 9172180.

Quality control

All drill core is logged, photographed and cut in half with a diamond saw. Half of the core is bagged and sent to AGAT Laboratories for analysis (which is an International Organization for Standardization 9001- and International Organization for Standardization/International Electrotechnical Commission 17025-certified lab), while the other half is archived and stored on site for verification and reference purposes. Gold is assayed by standard fire assay methods with 45 additional elements analyzed by inductively coupled plasma (ICP) utilizing a four-acid digestion. 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, PGeo, president of the company, is the qualified person for the Ootsa project as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.

We seek Safe Harbor.

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