Study supports potential to develop a low-cost
copper-gold-molybdenum project
VANCOUVER, Feb. 9, 2016 /CNW/ - Gold Reach Resources
(TSX-V; GRV) ("Gold Reach" or the "Company") is pleased to announce
the summary results of an independent Preliminary Economic
Assessment ("PEA") on the Company's 100% owned
copper-gold-molybdenum Ootsa Project ("Ootsa Project") in
west-central British Columbia. The
conceptual study demonstrates the potential to develop the Ootsa
Project by means of contract mining and toll milling at low initial
capital cost to deliver a base case after-tax NPV and IRR of
C$186 million and 81% respectively.
P&E Mining Consultants Inc. ("P&E") was the lead
engineering firm for the PEA, which also included input from
Knight-Piesold Consulting, ERM Consultants Canada Ltd., and Gold
Reach personnel.
"The Company is very encouraged with the outcome of the PEA,"
said Gold Reach President and CEO Dwayne
Melrose. "The results of the PEA support the concept
that the Ootsa Project can be developed as a potential profitable,
low-cost investment with an anticipated future upturn in metal
prices."
BASE CASE OPERATING HIGHLIGHTS AND PROJECT
PERFORMANCE:
|
|
·
Metal Price:
|
US$3.00/lb Cu,
US$1260/oz Au, US$10.30/lb Mo, US$17/oz Ag
|
|
|
·
Mill
Feed*:
|
65 Mt @ 0.37% Cu Eq
(0.25% Cu, 0.13 g/t Au, 0.016% Mo, 2.3 g/t Ag)
|
|
|
·
Resource
Quality:
|
94% Measured, 6%
Indicated Classification
|
|
|
· Production:
|
324 M lbs Cu,
185 K oz Au, 15.8 M lbs Mo, 3 M oz Ag
|
|
|
· Mine
Life
|
12 years
|
|
|
· Initial
CAPEX:
|
C$64 million
(including contingency)
|
|
|
· NPV @ 5%
(after-tax)**:
|
C$186
million
|
|
|
· IRR (after-tax):
|
81%
|
|
|
· Payback:
|
1 year
|
|
|
· Resilience:
|
31% IRR at US$2.25/lb
Cu
|
*Consists of 61 M tonnes of the Measured portion of the
mineral resource at grades of 0.25% Cu, 0.13 g/t Au, 0.016%Mo, and
2.3 g/t Ag, plus 4 M tonnes of the Indicated portion of the mineral
resource at grades of 0.24% Cu, 0.07 g/t Au, 0.015%Mo, and 2.3 g/t
Ag.
**NPV includes by-product credits for gold, molybdenum, and
silver. A discount rate of 5% was applied to generate NPV
based on the lower risk of the development relative to that of
similar projects. A contingency factor of 30% was included in
the initial capital cost estimate.
The PEA is based on the open pit development of the Ootsa
Property by a contract miner, toll milling of Ootsa mill feed at
the adjacent Huckleberry Mill at the end of current operations, and
use of the existing site facilities on a fee-basis. There are
currently no agreements in place to conduct toll milling of Ootsa
mill feed at the Huckleberry facilities, nor is there any guarantee
that the required agreements can be established on commercially
acceptable terms to support the proposed development
plan.
The projected mining method, potential production profile and
other Ootsa Project economics referred to in this news release are
summarized from a PEA, which will be filed on SEDAR within 45 days
of this news release, and are conceptual in nature and additional
technical studies will need to be completed in order to fully
assess the Ootsa Project's viability. The PEA should not be
considered a Pre-feasibility or Feasibility Study, as the economic
and technical viability of the project have not been demonstrated
to that level. There is no certainty that a potential mining
operation will be realized or that a production decision will be
made. A mine production decision that is made prior to completing a
Feasibility Study carries potential risks that include, but are not
limited to, the inclusion of Inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves. Among other things, mine design
and mining schedules, metallurgical flow sheets and process plant
designs may require additional detailed work and economic analysis
and internal studies to ensure satisfactory operational conditions
and decisions regarding future targeted production. Capital cost
estimates presented in this news release are preliminary in nature
and will require a more detailed assessment in subsequent economic
studies. Further, the advancement of the Ootsa Project is subject
to requisite consents, permits and approvals, regulatory or
otherwise for the Ootsa Project and there is no guarantee that Gold
Reach would be successful in obtaining any or all of them.
"The key to developing a viable operating plan for the Ootsa
Project was to fully recognize the nature of the value present in
terms of the property; to use that value as the foundation for a
plan that balanced investor risk and reward; and to take advantage
of the unique circumstances offered by the proximity of an adjacent
operating mine," continued Mr. Melrose. "Gold Reach now looks
forward to the challenge of refining the development concept for
the Ootsa Project into an executable plan that builds on the
results of the PEA."
BASE CASE SUMMARY
ECONOMICS
|
|
|
NPV @ 5%
|
C$ M
|
186
|
IRR
|
%
|
81
|
Simple
Payback
|
Yrs
|
1.0
|
Exchange
Rate
|
US$:C$
|
0.80
|
|
|
|
UNIT
COST
|
|
|
Direct
Cash
|
US$/lb Cu
|
1.33
|
All-In Sustaining
Cash
|
US$/lb Cu
|
2.09
|
|
|
|
METAL
PRICE
|
|
|
Cu
|
US$/lb
|
3.00
|
Au
|
US$/oz
|
1,260
|
Mo
|
US$/lb
|
10.30
|
Ag
|
US$/oz
|
17.00
|
|
|
|
INITIAL
CAPITAL
|
|
|
Direct
|
C$ M
|
33
|
Indirect
|
C$ M
|
19
|
Contingency
|
C$ M
|
12
|
Total
|
C$ M
|
64
|
|
|
|
OPERATING
COSTS
|
|
|
Mining
|
C$/t
mined
|
2.67
|
Processing
|
C$/t
milled
|
10.07
|
G&A
|
C$/t
milled
|
0.56
|
|
|
|
PRODUCTION
|
|
|
Cu
|
M lbs
|
324
|
Au
|
K oz
|
185
|
Mo
|
M lbs
|
15.8
|
Ag
|
M oz
|
3.0
|
|
|
|
MINING
|
|
|
Mill Feed
|
Mt
|
65
|
Waste
|
Mt
|
96
|
Total
|
Mt
|
161
|
Strip
Ratio
|
w:o
|
1.46
|
|
|
|
HEAD
GRADE
|
|
|
Cu
|
%
|
0.25
|
Au
|
g/t
|
0.13
|
Mo
|
%
|
0.016
|
Ag
|
g/t
|
2.3
|
|
|
|
PROCESS
|
|
|
Throughput
|
Mtpa
|
5.6
|
Mine life
|
Yrs
|
12
|
|
|
|
RECOVERY
|
|
|
Cu
|
%
|
91
|
Au
|
%
|
69
|
Mo
|
%
|
70
|
Ag
|
%
|
62
|
Operating Plan
The conceptual operating plan for the Ootsa Project is based on
the sequential, open pit development of three deposits in close
proximity to each other, by a mining contractor. Crushed mill
feed will be transported from Ootsa to the adjacent mill by means
of an overland conveyor system employing a series of floating
conveyor units to cross an intervening reservoir. Preliminary
metallurgical testwork indicates that the Ootsa feed could be
processed at a rate of 5.6 Mtpa achieving copper recoveries of
90-92%. Processing would be conducted on a
toll-basis.
Mineral Resources
An updated mineral resource model was developed utilizing a
drill hole database comprised of 26,995 assays from 258 drill
holes, including 7,311 m of drilling in 11 holes performed after
the previous resource update. Drill hole assay data was
composited into 2 m intervals and a block model with 10 m by 10 m
by 10 m block size was constructed using Gemcom modeling
software. Mineralized domains for all deposits were
constrained incorporating geological, structural, and lithological
parameters and using a $10/t NSR
cut-off value. Within these domains, a $8.50/t NSR cut-off value was applied to define
the extent of mineralization with reasonable prospects for economic
extraction. Within these domains, grades for copper, gold,
molybdenum, and silver were estimated using inverse distance
squared (ID2) grade interpolation guided by geostatistical
analysis. The resulting resource model was subject to pit
optimization using a Lerchs-Grossman algorithm to define a pit
constrained mineral resource as detailed in the table below.
Ootsa Project Pit Constrained Mineral Resource Estimate at
$8.50/t NSR Cut-off Value
(1-5)
Deposit
|
Category
|
Tonnes
('000's)
|
CuEq %
|
Cu
%
|
Au g/t
|
Mo %
|
Ag
g/t
|
CuEq M
lbs
|
Cu M
lbs
|
Au
K oz
|
Mo M
lbs
|
Ag K
oz
|
Ox
|
Measured
|
30,492
|
0.37
|
0.26
|
0.04
|
0.028
|
1.5
|
249
|
175
|
39
|
19
|
1,471
|
Indicated
|
3,204
|
0.32
|
0.23
|
0.04
|
0.021
|
1.4
|
23
|
16
|
4
|
1
|
144
|
M&I
|
33,696
|
0.37
|
0.26
|
0.04
|
0.027
|
1.5
|
272
|
191
|
43
|
20
|
1,615
|
East
Seel
|
Measured
|
22,165
|
0.43
|
0.28
|
0.26
|
0.002
|
2.5
|
210
|
137
|
185
|
1
|
1782
|
Indicated
|
1,422
|
0.38
|
0.28
|
0.14
|
0.003
|
4.4
|
12
|
9
|
6
|
0
|
201
|
M&I
|
23,587
|
0.43
|
0.28
|
0.26
|
0.002
|
2.6
|
222
|
146
|
191
|
1
|
1,983
|
West
Seel
|
Measured
|
134,491
|
0.37
|
0.21
|
0.16
|
0.022
|
3.2
|
1,097
|
623
|
692
|
65
|
13,837
|
Indicated
|
32,415
|
0.36
|
0.21
|
0.13
|
0.024
|
2.9
|
257
|
150
|
135
|
17
|
3,022
|
M&I
|
166,906
|
0.37
|
0.21
|
0.15
|
0.023
|
3.1
|
1,354
|
773
|
827
|
82
|
16,859
|
Inferred
|
5,212
|
0.30
|
0.18
|
0.09
|
0.019
|
2.6
|
34
|
21
|
15
|
2
|
436
|
Total
|
Measured
|
187,148
|
0.38
|
0.23
|
0.15
|
0.021
|
2.8
|
1,568
|
934
|
916
|
85
|
17,089
|
Indicated
|
37,041
|
0.35
|
0.21
|
0.12
|
0.023
|
2.8
|
286
|
175
|
146
|
19
|
3,368
|
M&I
|
224,189
|
0.37
|
0.22
|
0.15
|
0.021
|
2.8
|
1,854
|
1,109
|
1,062
|
104
|
20,457
|
Inferred
|
5,212
|
0.30
|
0.18
|
0.09
|
0.019
|
2.6
|
34
|
21
|
15
|
2
|
436
|
(1)
|
Mineral Resources,
which are not mineral reserves, do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant
issues.
|
|
|
(2)
|
The quantity and
grade of reported Inferred Resources in this estimation are
uncertain in nature and there has been insufficient exploration to
define these Inferred Resources as an Indicated or Measured Mineral
Resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured Mineral Resource
category.
|
|
|
(3)
|
The Mineral
Resources in this report were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards
on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by the CIM Council.
|
|
|
(4)
|
The $8.50/t NSR
resource cut-off value grade was derived from Sep 30/15 three year
approximate trailing average US metal prices of: Cu $3.25/lb, Au
$1,350/oz, Mo $12/lb and Ag $22/oz and a US$:CDN$ exchange rate of
0.85. Process recoveries used were Cu 90%, Au 70%, Mo 70% and Ag
65% with respective smelter payables of 96%, 96%, 96% and 90%.
Refining charges in US$ were Cu $0.05/lb, Au $5/oz and Ag $0.50/oz.
C$ operating costs used were $2.25/t for mineralized material and
waste mining, $1.50/t for overburden mining, $7.50/t for processing
and $1.00/t for G&A. An optimized pit shell was utilized for
resource reporting that utilized 45 degree slopes and an average
mineralized material bulk density of 2.72
t/m3.
|
|
|
(5)
|
Copper Equivalent
(Cu Eq) calculations are based on base case metal price and process
recovery assumptions, and take into account smelter payable rates
and refining costs.
|
The updated mineral resource estimate for the Ootsa Project
marks a large increase in resource confidence. Measured resources
at the Ox deposit have increased from 11 Mt in the January 9, 2014 resource update to 31 Mt in the
current update, an increase of 188%. The copper equivalent grade
has also increased for the Measured category at Ox going from 0.34%
Cu Eq (comprised of 0.21% Cu, 0.04 g/t Au, 0.029% Mo, and 1.6 g/t
Ag) in the January 9, 2014 resource
update to 0.37% Cu Eq (comprised of 0.26% Cu, 0.04 g/t Au, 0.028%
Mo, and 1.5 g/t Ag) in the current estimate. Measured
resources at the East and West Seel deposits have increased from 28
Mt in the January 27, 2014 resource
update to 157 Mt in the current
update, an increase of 463%. At the East Seel deposit the Cu
Eq grade in the Measured category has increased slightly from 0.42%
Cu Eq (0.25% Cu, 0.26 g/t Au, 1.5 g/t Ag) in the January 27, 2014 resource update to 0.43% Cu Eq
(0.28% Cu, 0.26 g/t Au, 2.5 g/t Ag) in the current estimate.
At West Seel the Cu Eq grade in the Measured category has decreased
slightly, from 0.40% Cu Eq (0.21% Cu, 0.15 g/t Au, 0.021% Mo, 3.8
g/t Ag) in the January 27, 2014
resource update to 0.37% Cu Eq (0.21% Cu, 0.16 g/t Au, 0.022% Mo,
3.2 g/t Ag) in the current resources estimate.
Mining
The conceptual mining plan uses conventional truck/shovel open
pit methods employing an equipment fleet supplied and operated by a
mining contractor. Three pits will be mined sequentially over
a period of 12 years including pre-stripping with mill feed
conveyed to the nearby mill for processing. Total mined
tonnage will vary from 10-20 Mt
annually depending on waste removal requirements.
The mill feed is contained within an optimized subset of the
mineral resource set out in the table above. Collectively,
the three pits contain 65 Mt of mill feed (inclusive of mining
dilution and loss factors) averaging 0.37% Cu Eq (0.25% Cu, 0.13
g/t Au, 0.016% Mo, and 2.3 g/t Ag). The mill feed is
associated with 31 Mt of overburden and 65 Mt waste rock resulting
in an overall life of mine strip ratio of 1.46:1. It is
notable that all mineral resources considered for mining are
classified in the Measured and Indicated categories.
Milling
The nearby mill is expected to be able to process mill feed from
the Ootsa Project without modification. Material will be
processed on a toll-basis at a rate of 5.6 Mtpa.
Metallurgical recoveries are based on preliminary testwork and vary
by deposit as shown in the table below.
Mill feed will be supplied to the mill via a conveyor system
owned by Gold Reach and operated by the mining
contractor.
Projected Metallurgical Recoveries
|
East Seel
|
West Seel
|
Ox
|
Cu
|
90%
|
92%
|
91%
|
Au
|
70%
|
65%
|
70%
|
Mo
|
---
|
70%
|
70%
|
Ag
|
60%
|
60%
|
65%
|
Infrastructure
The Ootsa Project lies on the south shore of the Nechako
Reservoir, 6 km from the existing Huckleberry copper-molybdenum
mine. As such, road access, process plant, tailings storage,
camp, and other support facilities already exist to support
development. Crushing, conveying, and field maintenance
infrastructure will be established on the Ootsa side of the
reservoir to support mining. The added electrical load is
estimated to be less than 2 MW and is expected to be supplied by
the existing power line.
Access across the 1 km wide reservoir for equipment and
personnel will be by a barge similar to the one that currently
exists to facilitate logging operations on the Ootsa side of the
reservoir. Mill feed will be transferred from the mining
areas to the mill via a conveyor system 9 km in length. A
series of floating conveyor units (similar to those often utilized
by dredging contractors) integrated with the overland components
will permit mill feed to move in a seamless, low-impact manner
across the reservoir at a nominal average rate of 700 tph.
Capital Costs
The project development requires initial capital of C$64 M to construct the conveyor system, mobilize
the contract mining fleet, prepare the first deposit for mining,
and cover the cost of reclamation bonding. An additional
C$32 M in sustaining capital is
required over the life-of-mine. A contingency in the amount
of 30% has been applied to all direct and indirect costs excluding
pre-stripping. A contingency has also been factored into the
reclamation bond estimate separately.
Operating Costs
Unit operating costs used to determine Project value can be
found in the table below. Mining costs vary by material type
and pit due to differences in haul distance, drill-blast cost, and
the cost to transfer feed to the mill. Processing costs
vary from deposit to deposit based on differences in reagent
consumption derived from testwork. The total premium imposed
on mining and milling costs for contract operation is approximately
30% and includes amortization, depreciation, administration, and
margin. It is the opinion of P&E that the contract rates are
consistent with industry norms and appropriate for the Ootsa
Project.
Unit Operating Costs
Cost
|
Units
|
East Seel
|
West Seel
|
Ox
|
Contract Mining-Mill
Feed
|
C$/t mined
|
2.95
|
3.02
|
2.90
|
Contract
Mining-Overburden
|
C$/t mined
|
2.06
|
2.06
|
2.09
|
Contract Mining-Waste
rock
|
C$/t mined
|
2.50
|
2.56
|
2.67
|
Toll
Milling
|
C$/t
milled
|
9.03
|
11.64
|
10.13
|
Owner
G&A
|
C$/t
milled
|
0.56
|
0.56
|
0.56
|
Environmental and Social
Total reclamation and closure costs are estimated at
$9 M for the Ootsa Project including
decommissioning and post-closure monitoring. Preliminary
testwork indicates that water from mining areas will meet discharge
requirements without the need for complex treatment. None of
the proposed development is expected to directly alter any
potential commercial, recreational, or Aboriginal fisheries within
the reservoir.
Construction and mine development are expected to employ about
140 people during the 12 month pre-production period. More
significant, however, is that the development could secure longer
term employment for the existing mine workforce and the benefits it
brings to the local community for an additional 12 years.
First Nations bands in the area are supportive of responsible
development and have engaged in positive dialogue with Gold Reach
throughout the exploration phase of the Ootsa Project.
Project Schedule
As contemplated in the PEA, engineering, environmental studies,
and permitting of the Ootsa Project are expected to take 3-4
years. Construction would last 12 months during which
infrastructure will be installed and the first pit
pre-stripped. Mining and processing would commence thereafter
and continue for a period of 12 years. At the end of
operations, decommissioning would take 12-18 months followed by a
minimum 5-year period of post-closure monitoring.
Economics
Financial performance is evaluated from the start of
construction and does not consider the cost of permitting or
financing. The Ootsa Project has been evaluated using a
5% discount rate as, unlike many new mines, the development is
premised on a tolling arrangement for the use of the adjacent
Huckleberry assets, which obviates the risk associated with
establishing access and constructing a mill and tailings
facility.
Economics for the Ootsa Project are based on metal prices of
US$3.00/lb Cu, $1,260/oz Au, $10.30/lb Mo, and $17.00/oz Ag, and at an exchange rate of
C$1.00 = US$
0.80. Metal prices applied to the project represent a
discount to prices projected for 2020 and beyond by various major
financial institutions and forecasters. This timing
corresponds to when it is reasonably expected that the Ootsa
Project could commence production.
Metal Price – Exchange Rate Sensitivity
Metal
Price
|
|
|
|
|
|
|
|
Cu
|
US $/lb
|
2.25
|
2.50
|
2.75
|
3.00
|
3.25
|
3.50
|
Au
|
US $/oz
|
1,140
|
1,180
|
1,220
|
1,260
|
1,300
|
1,340
|
Ag
|
US $/oz
|
14.75
|
15.50
|
16.25
|
17.00
|
17.75
|
18.50
|
Mo
|
US $/lb
|
6.70
|
7.90
|
9.10
|
10.30
|
11.50
|
12.70
|
Forex
|
US$:C$
|
0.73
|
0.75
|
0.78
|
0.80
|
0.83
|
0.85
|
|
|
|
|
|
|
|
|
NPV @ 5% (after
tax)
|
C$M
|
21
|
86
|
141
|
186
|
232
|
274
|
IRR (after
tax)
|
%
|
31
|
54
|
69
|
81
|
92
|
103
|
Payback
|
yrs
|
1.6
|
1.2
|
1.1
|
1.0
|
0.9
|
0.8
|
The Ootsa Project has an estimated after-tax net present value
(NPV) discounted at 5% of C$186 M, an
internal rate of return (IRR) of 81%, and an undiscounted payback
of 1 year. The table above shows how the Ootsa Project value
varies with changing metal prices and exchange rate. The
correlation between metal prices and exchange rate is a major
contributor to the Ootsa Project's resilience at lower prices.
Direct and all-in sustaining cash costs are US$1.33/lb Cu and US$2.09/lb Cu respectively. Direct cash
costs refer to all on-site costs of production while all-in
sustaining cash costs are all costs of production including
sustaining capital. All cash costs are calculated net of
by-product credits.
Conclusions and Recommendations
P&E concludes that the Ootsa Project has economic potential
as an open pit mining operation, utilizing the Huckleberry
processing plant to produce copper and molybdenum concentrates. The
PEA outlines 65 Mt of mill feed (inclusive of mining dilution and
loss factors) averaging 0.37% Cu Eq (0.25% Cu, 0.13 g/t Au, 0.016%
Mo, and 2.3 g/t Ag) within 3 pits. The mill feed from the
updated mineral resource estimate supporting this tonnage has a
high level of confidence with 94% (61 Mt) occurring within the
Measured category and 6% (4 Mt) occurring in the Indicated category
with no Inferred resources in the mine plan. The Ootsa
Project has a low capital cost at C$64
million, a low strip ratio at 1.46:1, and robust economics
with an after-tax NPV of C$186
million, an after tax IRR of 81%, and 1 year payback period
using base case metal prices.
In the PEA, P&E recommends that Gold Reach advance the Ootsa
Project with extended and advanced technical studies with the
intention of moving the project toward a production decision.
QP Statement
The resource update and Preliminary Economic Assessment have
been completed by P&E Mining Consultants Inc. in accordance
with National Instrument 43-101 Standards of Disclosure for Mineral
Projects. The updated mineral resource estimate has been
prepared by Brian Ray, P.Geo. and
Eugene Puritch, P.Eng., both
Independent Qualified Persons as defined by National Instrument
43-101, and has an effective date of January
1, 2016. The Preliminary Economic Assessment has been
prepared under the supervision of Eugene
Puritch, P.Eng, an Independent Qualified Person as defined
by National Instrument 43-101, and has an effective date of
January 1, 2016. The PEA will
be filed on SEDAR within 45 days of this news release.
Eugene Puritch, P.Eng., has
reviewed and approved the technical disclosure in this news release
for P&E Mining Consultants Inc. Dr. Shane Ebert, Ph.D., P.Geo. is the Qualified
Person for Gold Reach and has reviewed and approved the contents of
this release.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dwayne Melrose"
President & CEO
Neither 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.
Certain statements made and information contained in this
news release and elsewhere constitutes "forward-looking
information" within the meaning of Canadian securities legislation.
Forward-looking statements are based on certain assumptions and are
subject to risks and uncertainties which could cause actual events
or results to differ from those reflected in the forward-looking
statements, including, without limitation, with respect to
statements regarding the PEA and updated resources estimate, the
assumptions set forth in this news release (including the tolling
arrangement terms for use of the Huckleberry assets), and risks and
uncertainties relating to the interpretation of drill results and
the estimation of mineral resources, the geology, grade and
continuity of mineral deposits, the possibility that future
exploration, development results will not be consistent with the
Company's expectations, accidents, equipment breakdowns, risk of
undiscovered, title defects and surface access, labour disputes,
the potential for delays in exploration and permitting activities,
the potential for unexpected costs and expenses, commodity price
fluctuations, currency fluctuations, political risk and other risks
and uncertainties, including those described under Risk Factors in
each management discussion and analysis and in the Company's other
disclosure which are available under the Company's profile at
www.sedar.com. Forward-looking information is based
on various assumptions including, without limitation, the
expectations and beliefs of management, the assumed long term price
of copper, gold, silver and molybdenum, that the Company will
receive required permits and access to surface rights, that the
Company can access financing, appropriate equipment and sufficient
labour and that the political environment within British Columbia will continue to support the
development of environmentally safe mining projects. Should one or
more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements.
This news release may use the terms "Measured",
"Indicated", and "Inferred" as these terms are defined under
Canada's National Instrument
43-101. U.S. Investors are advised that, while such terms are
recognized and required by Canadian regulations, they are not
recognized by the United States Securities and Exchange Commission
("SEC") and may not be comparable to similar information for
United States mining or
exploration companies. As such, certain information contained
on this news release concerning descriptions of mineralization and
resources under Canadian standards is not comparable to similar
information made public by United
States companies subject to the reporting and disclosure
requirements of the SEC. U.S. investors are cautioned not to
assume that any part or all of the mineral deposits described in
these categories will ever be converted into proven or probable
reserves, as defined in the SEC's Industry Guide No.
7.
SOURCE Gold Reach Resources Ltd.