Grades Increase Tonnage at GWR's Skarn Zones: South Zone Assay Update

nlk



FSC / Press Release


Drilling Resumes, High Copper (Iron-Gold-Silver) Grades Increase Tonnage at GWR's Skarn Zones: South Zone Assay Update


Armstrong, British Columbia CANADA, January 13, 2011 /FSC/ - GWR Resources Inc. (GWQ - TSX Venture), is pleased to report positive assay results from 6 additional holes testing the flat-lying Spout Lake South Skarn Zone: >http://www.gwrresources.com/i/Maps/LacLaHache_01.jpg in central British Columbia. The goal of our winter 2010-2011 drilling campaign is to support 43-101 compliant resource calculations for possible open-pit development of the near-surface portions of the deposits. A full description of the Drilling Program, its rationale, links to various maps and photos, and assays for the first batch of 10 holes drilled, were provided in our December 16: >http://www.gwrresources.com/s/NewsReleases.asp?ReportID=435973&_Type=News-Releases&_Title=Drilling-continues-to-intersect-high-copper-magnetite-grades-at-GWRs-Skarn-... News Releases. Exploration for copper-magnetite-gold-silver within the skarns is facilitated by the strongly magnetic iron (in magnetite) and its intimate association with the other metals. Evidence of non-magnetic copper-rich zones has also been found, providing additional encouragement outside or between the high-magnetic anomalies: >http://www.gwrresources.com/i/Photos/SPL-Skarn-South-SL10-01-top-48m-5.jpg to semi-massive magnetite with finely disseminated to massive chalcopyrite: >http://www.gwrresources.com/i/Photos/SL10-14-68m-bo-cpy-mgt.jpg, chalcocite and pyrite, within fine to coarse grained, skarned volcanic tuffs and flows, late veins/dykes or fracture fillings: >www.gwrresources.com)


Spout Lake South Skarn Zone


Current South Zone drilling is focused on delineation of mineralization within a "Peanut-shaped" high-magnetic anomaly, one of several ground magnetic survey highs. These holes are vertical, on 20 m centers. The first 5 holes into this feature have been reported, generally defining a core as multiple subhorizontal zones, grading 0.3 to 0.4 % Cu over 6 to 16 m true thicknesses, from the bedrock surface downwards, with several 2 m intervals >1% Cu, and up to 3.85% Cu (Hole SL10-01). Additional drilling will confirm mineralization trends, but the new assays for 6 additional South Zone holes (see Table, below) demonstrate continuation outwards from the core to the east and north, with increased thickness and copper grades towards the outer edges of (but still within) the magnetic anomaly.


Accurate conversion of % Fe values to % magnetite, or to copper equivalent is not possible due to the presence of Fe in sulphide and non-sulphide mineral phases other than magnetite (hence only % Fe assays are shown in the table below), however, results of historical Davis Tube Recovery testing done on the Spout Lake skarns and metallurgical testing conducted recently on the ores, suggest the massive and semi-massive magnetite significantly increases the value of the Spout Lake skarn mineralization, perhaps doubling the copper-only value/tonne in many intervals. Gold and silver concentrations also add value.


GWR is encouraged by all results to date within the skarn exploration program, and looks forward to continued drilling success based on demonstrated relationships between geological, geophysical, geochemical information. President Irvin Eisler states: "Our timing is good! We are excited that our decision to prove potential of the skarn zones coincides with a sustained surge in metal prices and increased demand for magnetite ores. Iron has become a hot commodity, as indicated by competitive bids for projects such as Baffinland Iron Mines' Mary River, Nunavut property, or the purchase of Consolidated Thompson Iron Mines Limited, among others. The high copper and magnetite concentrations within our Spout Lake Zones, located at surface, with excellent infrastructure, positive metallurgy, and good recoveries, affords a much lower development cost per tonne than is required in remote regions."


Our exploration program resumed January 10, 2011 and both drill rigs are again busy testing the North and South Skarn Zones.


New Assays, Spout Lake SOUTH Skarn Zone "Peanut" Magnetic Anomaly


-***-
-------------------------------------------------------------------------
NAD 83 ZONE 10
-------------------------------------------------------------------------
Hole E N Az. Dip EOH Cu Au Ag Fe Length From To
(m) (%) (gpt)(gpt) (%) (m) (m) (m)
-------------------------------------------------------------------------
SL10-06 611910 57560805 n/a 90 76.3 0.61 0.10 2.0 19.00 42.0 5.0 47.0
-------------------------------------------------------------------------
ON East side of SOUTH ZONE incl.0.80 0.12 13.0 22.30 26.0 5.0 31.0
"Peanut" magnetic anomaly incl.1.08 0.17 3.9 26.5 2.0 5.0 7.0
0.61% Cu over 42 m true incl.1.52 0.21 4.6 30.60 2.0 19.0 21.0
thickness, several 2m intervals incl 1.70 0.17 5.8 43.40 2.0 25.0 27.0
over 1% Cu, up to 1.7% Cu incl.0.37 0.03 1.1 15.20 10.0 35.0 45.0
-------------------------------------------------------------------------
SL10-07 611910 5760825 n/a 90 76.2 0.56 0.12 2.2 18.30 40.0 3.0 43.0
-------------------------------------------------------------------------
ON NE corner of SOUTH ZONE incl 0.78 0.18 3.0 21.40 10.0 19.0 29.0
"Peanut" magnetic anomaly incl 1.17 0.32 4.6 25.80 2.0 19.0 21.0
0.56% Cu over 40 m true incl.1.64 0.30 6.5 21.30 4.0 35.0 39.0
thickness, 2 and 4 m intervals incl.2.10 0.29 7.9 21.60 2.0 35.0 37.0
over 1% Cu, up to 2.1% Cu
-------------------------------------------------------------------------
SL10-08 611890 5760825 n/a 90 70.1 0.54 0.13 2.1 13.10 66.0 2.0 68.0
-------------------------------------------------------------------------
ON Nor h side of SOUTH ZONE incl 0.81 0.11 2.8 16.90 4.0 2.0 6.0
"Peanut" magnetic anomaly incl.1.05 0.14 3.2 14.60 2.0 4.0 6.0
0.54% Cu over 66 m true incl.0.80 0.12 2.6 17.00 8.0 12.0 20.0
thickness, 4 to 8 m zones incl.1.00 0.26 3.3 12.40 2.0 14.0 16.0
grading 0.8% Cu or better, incl 0.42 0.05 1.9 11.80 8.0 24.0 32.0
one deeper 2 m zone grading incl.0.93 0.17 4.2 19.20 6.0 34.0 40.0
4.45% Cu, 1.09 gpt Au, 15.4 gpt incl 1.18 0.24 5.1 20.90 4.0 34.0 38.0
Ag, 17.5% Fe incl.0.46 0.05 1.8 12.00 8.0 44.0 46.0
incl.4.45 1.09 15.4 17.50 2.0 58.0 60.0
-------------------------------------------------------------------------
SL10-09 611910 5760845 n/a 90 76.3 0.39 0.08 1.7 16.00 32.0 11.0 43.0
-------------------------------------------------------------------------
ON NE edge of SOUTH ZONE incl.0.55 0.08 2.4 22.10 8.0 11.0 19.0
"Peanut" magnetic anomaly incl.0.92 0.15 4.1 32.10 2.0 11.0 13.0
0.39 % Cu over 32 m true incl.0.49 0.10 2.0 14.70 6.0 27.0 33.0
thickness, several zones over incl.0.81 0.14 3.0 17.70 2.0 31.0 33.0
0.5% Cu, up to 1.18% Cu over 2m incl.0.59 0.09 2.8 19.60 4.0 39.0 43.0
Incl.0.64 0.15 3.0 20.40 2.0 41.0 43.0
and 0.51 0.13 2.2 10.30 6.0 55.0 61.0
incl.1.18 0.29 4.2 11.20 2.0 57.0 59.0
-------------------------------------------------------------------------
SL10-27 611890 5760765 n/a 90 70.1 0.39 0.05 2.1 10.40 10.0 24.0 34.0
-------------------------------------------------------------------------
OFF South side of SOUTH ZONE incl.0.67 0.04 3.2 15.60 2.0 24.0 26.0
"Peanut" magnetic anomaly incl.0.51 0.04 3.1 9.80 4.0 30.0 34.0
defines edge of zone, 0.39%
Cu over 10 m
-------------------------------------------------------------------------
SL10-28 611910 5760765 n/a 90 70. 0.36 0.04 2.1 17.40 2.0 15.0 17.0
-------------------------------------------------------------------------
OFF SE corner of SOUTH ZONE
"Peanut" magnetic anomaly
just beyond edge of zone? and 0.34 0.03 2.3 21.60 2.0 33.0 35.0
-------------------------------------------------------------------------
-****-


GWR maintains a quality assurance/quality control program that conforms to the requirements of National Instrument 43-101. Rob Shives, P. Geo., is the Qualified Person (as defined by NI43-101) who accepts responsibility for the technical content of this news release.


GWR Resources


GWR is an active mineral exploration company currently exploring for gold and base metals on two properties within Canada. The Lac La Hache copper-gold porphyry project hosts multiple zones containing commercial grades of gold, copper, silver and magnetite. The project is located in British Columbia's prolific Quesnel Trough between producing mines at Imperial Metals' Mt. Polley Copper-Gold Mine and New Gold Inc.'s New Afton Copper-Gold project (Teck-Cominco's legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure. The Sainte Sabine gold (+Ag, Zn, Cu) property is located within the Bellechasse Mineral Belt in southeastern Quebec, adjacent to known zones on Golden Hope Mines' Bellechasse Project.