November 30, 2009 - Vancouver, British Columbia
Larry W. Reaugh, President and Chief Executive Officer of Goldrea Resources Corp. (GOR-TSX.V; Frankfurt-GOJ; Pink Sheets-GORAF) is pleased to report that the processing of the previously reported 20,000 tonnes of development material from the Daye Gold Joint Venture (90% Goldrea) was completed on November 10, 2009.
Processing of the gold bearing resource by the Daye Mill took 11 days. The 21,987.83 tonnes was obtained from development work and x-cuts accessed by the Golden Rose Shaft. The material graded from 0.5 to 3 g/t gold and the final average grade was 0.67 g/t. The bulk tonnage material was all obtained from development work in which the grades were often based on visual controls. The processing was monitored by Paul L. Blair, Chief Operating Officer and Director of Goldrea. The concentrate produced contained 329.02 troy ounces of gold. It was commingled with other Daye concentrates and will be further treated at a custom refinery to produce a salable product. Results will be reported when they are received
Future gold bearing material will be produced from underground stopes and production of the next lot for milling is expected next year. The Company will have better control of the stope material grade, as only a small percentage of the material will come from development and x-cutting.
Average recovery of this initial lot was 70.23% compared to the 90 – 92% recovery historically achieved by the Daye Mill. The lower recovery is thought to be caused by graphite (carbon) in the mill feed. A bulk sample of the feed and splits of the process samples have been brought to Canada and a metallurgical testing program is currently being formulated by Canadian metallurgical laboratories to determine a suitable reagent mix and other parameters to increase the recovery.
PROJECT UPDATE:
The Company will now process material from stopes being developed from the Golden Rose Shaft with the goal as reported in the March 18, 2009 press release of 100 to 200 TPD accessed from the shaft itself (currently mining 50 TPD from two combined stopes). To reach the goal of 1500 – 1800 TPD two more shafts, one similar shaft to Golden Rose and a larger production shaft. To reach these goals, expenditures of between $6 - 8 million have been estimated. Over the next few months the Company will refine these numbers and come up with a firm budget. The potential of engaging a strategic partner to fund the development is positive and negotiations with three separate Chinese gold companies are ongoing.
To date the Company has expended approximately $7.5 million directly on the Goldrea/Rushan joint venture with the followingaccomplishments:
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• 57,122 meters (187,360 feet) of diamond drilling has been completed. 50,115 meters (164,400 feet) directly on the Goldrea/Rushan concession adjacent to the Daye 1800 TPD milling operation;
• The sinking of a 235.5 meter (772.6 feet) 5 compartment concrete lined shaft;
• NI 43-101 Indicated Resource of 174,000 ounces on the Rushan/Goldrea concession;
• Ongoing exploration on the adjacent Ludi concession which is open to the south;
• 46,000 meters (2.9 miles) of underground development;
• 22,000 tonne bulk sample test from underground completed.
This news release was reviewed by Paul L. Blair, a Qualified Person recognized under NI 43-101.