Gold Reach Resources Ltd (TSX-V: GRV), a mineral exploration and development company, has announced the summary results of an independent Preliminary Economic Assessment (PEA) on the Company's 100% owned copper-gold-molybdenum Ootsa Project in west-central British Columbia.
Gold Reach is focused on advancing its large Ootsa Cu-Au porphyry deposit. The Ootsa Project lies on the south shore of the Nechako Reservoir, comprising of 67,937 hectares located in the Omineca Mining Division of British Columbia. The property contains three known porphyry deposits, along with zones of high grade silver and base metal. In the conceptual study conducted by P&E Mining Consultants Inc., the lead engineering firm for the PEA, it is demonstrated that 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.
"The Company is very encouraged with the outcome of the PEA," said Dwayne Melrose, President and CEO of Gold Reach. "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."
The company commenced the preliminary PEA in September of 2015; and announced a number of other positive developments, including:
- Closing its first tranche of its non-brokered private placement and has issued 2,669,884 units at a purchase price of $0.17 per unit for gross proceeds of $453,880.28.
- Appointing Patrick Glazier as Chairman of the Board.
With the long awaited PEA results now available, Gold Reach is now positioned to act accordingly in order to further their goals for their Ootsa Project. "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," said 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."
For more information about Gold Reach Resources, visit www.goldreachresources.com.
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