Name and Location
Ootsa copper/gold/molybdenum project, British Columbia, Canada.

Client
Gold Reach Resources.

Project Description
An independent preliminary economic assessment (PEA) has demonstrated the potential to develop the Ootsa project using contract mining and toll milling at low initial capital cost.

The conceptual mining plan uses conventional truck/shovel openpit methods, employing an equipment fleet supplied and operated by a mining contractor. Three pits will be mined sequentially over 12 years, including prestripping, with mill feed conveyed to the nearby mill for processing. Total mined tonnage will vary from 10-million tonnes a year to 20-million tonnes a year, depending on waste removal requirements.

The mill feed is contained within an optimised subset of the mineral resource. Collectively, the three pits contain 65-million tonnes of mill feed, inclusive of mining dilution and loss factors, averaging 0.37% copper equivalent (0.25% copper, 0.13 g/t of gold, 0.016% molybdenum and 2.3 g/t silver). The mill feed is associated with 31-million tonnes of overburden and 65-million tonnes of waste rock, resulting in an overall life-of-mine strip ratio of 1.46:1.

The nearby mill is expected to process feed from the Ootsa project without modification. Material will be processed on a toll-basis at a rate of 5.6-million tonnes a year, achieving copper recoveries of 90% to 92%. Processing will be conducted on a toll basis.

Feed will be supplied to the mill by a conveyor system owned by Gold Reach and operated by the mining contractor.

Production is estimated at 324-million pounds of copper, 185 000 oz of gold, 15.8-million pounds of molybdenum and three-million ounces of silver.

Net Present Value/Internal Rate of Return
The base case after-tax net present value, at a 5% discount rate, of C$186-million and an internal rate of return of 81%, with a payback of one year.

Value
The project is estimated at C$64-million, including contingency.

Duration
As contemplated in the PEA, engineering, environmental studies, and permitting of the Ootsa project are expected to take three to four years.

Construction will take 12 months, during which infrastructure will be installed and the first pit prestripped. Mining and processing will start thereafter and continue for 12 years.

At the end of operations, decommis-sioning will take 12 to 18 months, followed by a minimum five-year period of post-closure monitoring.

Latest Developments
P&E Consulting has recommended that Gold Reach advance the Ootsa project, with extended and advanced technical studies with the intention of progressing the project towards a production decision.

Key Contracts and Suppliers
P&E Mining Consultants, with input from Knight Piésold Consulting, ERM Consultants Canada (lead engineering firm for PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Gold Reach Resources, tel +1 604 718 5454 or email info@goldreachresources.com.
P&E Mining Consultants, tel +1 905 595 0575 or fax +1 905 595 0578.
Knight Piésold Consulting, tel +1 604 685 0543 or email vancouver@knightpiesold.com.
ERM Consultants Canada, tel +1 250 771 3888 or fax +1 250 771 3889.