News

July 12, 2007

Goldrea’s Patience Has Paid Off With The Purchase Of The Daye Gold Mine In China

Goldrea Resources is clearly one of the patient ones, or certainly Larry Reaugh is. The executive chairman of the company was in London a few weeks back representing Adanac Molybdenum and it was clear from the way he had staked the Adanac’s Ruby Creek project in British Columbia in 2000 after Placer had let it lapse that he is happy to play the long game. Goldrea has kept one foot on home territory with projects in British Columbia and Arizona, but for the past 2.5 years it has been putting together a joint venture with China Rushang in Shandong province, China. Deals take a long time to mature over there and often western companies get bored and switch their attention elsewhere.

Daye Gold's 2300 tpd mill near Rushan City, Shandong Province, China

Not so Goldrea which has been negotiating to buy the Daye gold mine since 2005. During that year it carried out some drilling  down dip from the mine itself and obtained grades as high as 8.26 g/t over 5 metres. In February of 2006 a mineral resource evaluation report qualifying for NI 43-101 was carried out and this  focused on sericite as well as gold. Sericite is a fine grained mica which is a common alteration mineral in areas that have been subject to hydrothermal alteration and...