Gold Mining in CHINA - Shandong Province

Multi-metal properties in Canada and USA, including gold and molybdenum

Goldrea Resources Profile

Goldrea Resources Corp.White Rock, B.C.(TSX.V: GOR) is a mineral exploration and development company actively engaged in the acquisition, exploration, and development of mineral properties.

The Company has been working on several gold projects in North America and Rushan City, Shandong Province in China.

With China's new prominence as the world's top gold producer in 2007 (first time ever), Goldrea's Chinese activities represent a strategic new step for the Company.


The diverse and experienced Board of Directors is led by CEO Mr. Larry Reaugh, who has forty-two years experience in the mining industry. Mr. Reaugh is credited with several producing mines and has raised more than sixty million dollars for exploration and development of mining properties. He also serves as CEO and Chairman for Molycor Gold Corp, Adanac Molybdenum Corporation and Rocher Deboule Mineral Corp.



Rushan Goldrea Gold, Shandong Province, China:

The Company is accumulating required data to prepare a geological report that meets the Chinese government standards to apply for mining permits for Rushan Goldrea Gold (RGG), and to this end, completed over 50,115 metres (164,400 ft) of diamond drilling.

The Company is commissioning Shandong No. 3 Mineral and Geological Exploration Institute (No. 3 Brigade) for the geological report.

The Company finished sinking its “Golden Rose” shaft in May 2007, and completed the surface construction in June 2008. So far, it has conducted five levels of lateral developments ranging from 52 to 466 metres depending on stability of the geologic structure. Development of the resources is underway.

Mineral extraction started after the 2008 fiscal year end, close to 11,000 tonnes have been extracted by the report date, and will be processed when the stock pile reaches 20,000 tonnes.

As a reaction to the current economic downturn, falling commodity prices, and falling Canadian dollar, the Company is scaling back its operating expenditures in China to conserve cash and weather through the tough times.

The Company signed an agreement with Daye Gold Mine, the 10% owner of the JV, whereby Daye will take over the underground operation;

The arrangement is such that Daye will fund and manage the operation at their cost, and revenues from the sale of extracted gold will be used to pay off such costs and the remaining to be distributed based on the percentage ownership between the Company and Daye. This arrangement will greatly reduce the Company’s cash requirement for its China operation.


Underground development is progressing extremely well at the Golden Rose Mine in Shandong Province, China.

As of December 25, 2008, 2,093 meters (6,865 feet) of lateral development and 280 meters (918 feet) of raises have been completed on five levels from the 235 meter (771 feet) deep shaft; additionally 160 meters (525 feet) of sumps (sufficient to hold 12 hours of water inflow) and a pumping system has been installed. The shaft, surface plant and underground ventilation system have been completed. Nearly 12,000 tonnes of gold sulphide material primarily from the development crosscuts has been stockpiled on surface to be shipped to the mill at 20,000 tonnes.

The Company has entered into an agreement with the Daye Gold Mine to continue the exploration and development underground. The cash flow from the 20,000 tonne underground stockpile material should pay for the ongoing extensive development underground. The cash flow will be split 90% Goldrea and 10% Daye.

Mineralization is developing nicely with assays to 21.30 g/t Au (0.621 oz/t)

Rushan Ludi Goldrea Gold, Shandong Province, China:

The Chinese government approved the joint venture contract and the articles on July 30, 2008. The JV registration was completed, and Rushan Ludi Goldrea Gold Inc. obtained its business license on August 21, 2008.

According to the JV contract, the Company has an obligation to contribute a total of Rmb 14 million within three years of obtaining the business license. It has contributed its first advance of $373,000 on October 15, 2008. The initial exchange rate was 1Rmb = 0.1424 CAD when signing the JV contract two years ago, the current exchange rate is around 1Rmb = 0.1800CAD, representing a 26% devaluation of Canadian dollar against Chinese Rmb. The unpredictability of Chinese government approval has made it very difficult for the Company to hedge its exchange risks

September 11, 2008 - Vancouver, British Columbia

Goldrea Resources Corp. (GOR-TSX.V; Frankfurt-G0J; Pink Sheets-GORAF) reports the Company has terminated its agreement to acquire the Daye Gold Mine located near Rushan City, Shandong Province, China. The decision by the Board of Directors is based on the acquisition not yet having received the required approval from the Central Government of China and over one year having elapsed since signing the final agreement to acquire an interest in the Daye Gold Mine.

The Company feels that its shareholders would receive greater benefit by continuing to expand the existing gold resources it has developed to date on its 65,000 hectares of exploration licenses in Shandong Province, China.

The Company holds these licenses through its Chinese subsidiary, Rushan Goldrea Gold Inc. (90% owned by Goldrea – up from the initial 74% ownership). The company has completed 50,115 meters (164,400 ft.) of diamond drilling.


Within Goldrea's diverse property portfolio (gold, silver, platinum, palladium, molybdenum, and copper), of most immediate interest and potential is the CrowRea Project, a molybdenum prospect discovered in the mid 90's. Goldrea has since added both Empress and HP molybdenum claims adjoining the CrowRea, and an aggressive drilling and exploration program is underway in 2007 and 2008. (Visit our Properties page for details.)

Last changed at 25-Jun-2009 10:17PM by nmaycock