Goldrush Resources Ltd.: Clarification of mineral resource technical disclosure

TSX VENTURE EXCHANGE:  GOD-TSXV

OTCQX: GDRRF

 

Vancouver, British Columbia (March 22, 2013) – As a result of a review by the British Columbia Securities Commission (“BCSC”), Goldrush Resources Ltd. (TSX-V: GOD) (Goldrush or the “Company”) is issuing the following information to clarify the Company’s mineral resource technical disclosure.

 

Background

 

On May 24, 2012, the Company issued a press release disclosing an updated mineral resource estimate for the Ronguen Gold Project in Burkina Faso, West Africa as per the following table:

 

Table 1: Mineral Resource Statement* for the Ronguen Gold Deposit, Burkina Faso, SRK Consulting Canada Inc., May 18, 2012.

 

Classification

Cut-Off

Quantity

Grade

Contained Metal

Au (gpt)

('000 tonnes)

Au (gpt)

(Gold ounces)

Measured Mineral Resources

       

Saprolite / Saprock

0.4

4,143

1.12

150,000

Fresh Rock

0.7

138

1.14

5,000

Total Measured

 

4,281

1.12

155,000

Indicated Mineral Resources

       

Saprolite / Saprock

0.4

3,861

1.28

159,000

Fresh Rock

0.7

345

1.66

18,000

Total Indicated

 

4,206

1.31

177,000

Total Measured and Indicated

 

8,487

1.22

332,000

Inferred Mineral Resources

       

Saprolite / Saprock

0.4

136

1.91

8,000

Fresh Rock

0.7

754

1.83

44,000

Total Inferred

 

890

1.85

52,000

*Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The mineral resources are reported at a cut-off grade of 0.4 gpt gold in saprolite/saprock and 0.7 gpt gold in fresh rock within a conceptual pit shell optimized considering a gold price of US$1,550 per ounce of gold, metallurgical recovery of 85 percent in saprolite/saprock and 80 percent in fresh rock. The saprolite/saprock extends to the base of the moderately weathered zone and the fresh rock mineral resources extend below that surface.

 

Disclosure Issues

 

1.In subsequent press releases numbered 2013-1, 2 and 3, the Company provided disclosure that combined the measured and indicated resources at Ronguen without providing the individual numbers in each category, which is in contravention to Section 2.2(b) of National Instrument 43-101 (NI-43-101).  A similar disclosure was made in the Company’s corporate brochure and corporate presentation.  As a result of the BCSC review, the Company has revised the disclosure provided on its website, corporate brochure and presentation so that the number of measured and indicated ounces are not combined without disclosing them separately.  To correct the disclosure in the any of the Company’s press releases in which this situation occurred, readers are referred to the above table, and to the Company’s initial press release of the mineral resource estimate of May 24, 2012, wherein measured and indicated resources are shown separately.

 

2.On the Company’s website, corporate brochure, corporate presentation and November 2012 audio interview, the Company used the colloquial term “global resources” to summarize the number of ounces of gold contained in the Ronguen gold deposit and in reference to the deposits of other companies in Burkina Faso.  Reference to global resources of the deposits of other companies in Burkina Faso was also made in the January 9, 2013 press release. Global resources is not a defined term under NI 43-101 and the use of the term global resources is in contravention of Sections 2.2(a) and 2.3(1) of NI 43-101.  To correct this disclosure, the Company has revised the disclosure provided on its website, corporate brochure and corporate presentation. To correct the disclosure in the Company’s January 9, 2013 press release, the Company retracts the use of the term global resources and requests that readers refer to the list of footnotes in that release wherein other companies’ mines and deposits measured, indicated and inferred resources are categorized separately.

 

3.On the Company’s website, corporate brochure, corporate presentation and November 2012 audio interview, the Company combined inferred resources with measured and indicated resources to summarize the number of ounces of gold contained in the Ronguen gold deposit and in reference to the deposits of other companies in Burkina Faso.  Combining inferred resources with measured and indicated resources at any point is in contravention of Section 2.2(c) of NI 43-101.  To correct this disclosure, the Company has revised the disclosure provided on its website, corporate brochure and corporate presentation.

 

4.On the Company’s website, corporate brochure and corporate presentation, certain graphical images show the resources of gold deposits and mines in Burkina Faso in terms of metal content only, without showing measured, indicated and inferred resources categorized separately.  This disclosure is in contravention of Section 2.2(d) of NI 43-101.  To correct this disclosure, the Company has revised the disclosure provided on its website, corporate brochure and corporate presentation.

 

5.On the Company’s website, corporate brochure and corporate presentation, the Company fails to disclose the name and relationship to the Company of the qualified person who prepared, supervised or approved the technical information it is disclosing.  This omission is in contravention of Section 3.1 of NI 43-101.  To correct this omission, and prevent similar occurrences, the Company has revised the disclosure provided on its website, corporate brochure and corporate presentation, and its review procedure.

For further information on Goldrush Resources Ltd., shareholders and other interested parties are invited to visit the Company’s website at www.goldrushresources.ca.

ON BEHALF OF THE BOARD OF DIRECTORS,

GOLDRUSH RESOURCES LTD.

Len Brownlie

Len Brownlie – President and Chief Executive Officer

 

Contact Information:

 

Len Brownlie, President and CEO: info@goldrushresources.ca

1-604-602-9973

 

About Goldrush: Goldrush is a Canadian mineral exploration company which has successfully focused on gold exploration in West Africa, where the company has discovered, and has recently expanded the Ronguen gold deposit in Burkina Faso to a 155,000 ounce measured (4.281 million tonnes at a grade of 1.12 g/t Au), 177,000 ounce Indicated (4.206 million tonnes at a grade of 1.12 g/t Au), and 52,000 ounce Inferred (890,000 tonnes at a grade of 1.85 g/t Au) gold resource as disclosed in Mineral Resource Technical Report, Ronguen Gold Project, Burkina Faso dated July 7, 2012.

 

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as  "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change.  The reader is cautioned not to place undue reliance on forward-looking statements.  Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

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