The Copper Market

Document Sample
The Copper Market Powered By Docstoc
					The Copper Market
Goldman Sachs has increased its forecast price for copper in 2011,
saying the fundamentals for the red metal are by far the strongest in
the complex. It warns that as fresh mine capacity isn't about to come
to the rescue of the market for at least 2-3 years, inventories will
dwindle and the price will rise.

                    “Demand will have to give way”

                                            January 24th 2010

Gold Reach Resources Highlights over 7 Years
Own 100% of 19,000 Ha Oosta Lake Property directly south of the Producing Huckleberry Mine
     •   Have identified two deposits 43-101 compliable with 88 holes drilled
           • 287,516,000 lbs of Copper
           • 23,665,000 lbs of Molybdenum
           • 239,870 ounces of Gold

    Damascus Silver Vein - History
     •   Located 1.5 km east of the Seel copper/gold/ molybdenum resource.
     •   Identified strike length of 500m
     •   Drill tested in 1983 by a 22 hole program to a maximum depth of 30m
     •   Mineralization remains open along strike to the north and south and to depth.
     •   Two documented shear/veins parallel and the located to the west of Damascus Vein.

Auro Property Acquired 2009-2010 Drill Ready- Spent $1.1m
•   Auro is a 14,200 Ha property South, East and adjacent to Richfield Ventures (TSX-RVC) recent gold discovery.
•   Completed 1500km of MAG-EM airborne survey at 100m spacing.
            82km of Geophysics 3DIP @ 200m spacing and 400m
            • Collected over 2900 soil samples and analysised the samples using two methods;
                   • Soil samples sent for 53 element ICP
                   • PH Sampling -Under the direction of Dr. Barry Smee and his partner Dave Heberlein (former head
                     geologist for Barrick Gold).
•   Based on the results of all of the above, a large area in the NW corner of the property was submitted for an area
    based permit for drilling and further Geophysics

•   Specific targets have been identified for drilling and this will commence in April-May depending on permits

Gold Reach Resources Assets

          Seel Project

                Auro Property

Gold Reach Resources GRV – TSX.V

    • Shares outstanding: 14.4 million

    • Stock Price: $0.50 as of Feb 1, 2011

    • Gold Reach Resources consists of a proven management team
      focused on two 100% owned properties.

        • Oosta Lake Property: 19,000 Ha Porphyry style deposit located 8 km
          south of the producing Huckleberry Copper Molybdenum mine.

        • Auro Property: 14,200 Ha property South, East and adjacent to
          Richfield Ventures (TSX-RVC) recent gold discovery.

Auro Property - 2010 Highlights

   •   Acquired the 14,200 Ha Auro Property by staking late 2009, early 2010.
   •   Completed 1500km of MAG-EM airborne survey at 100m spacing.
   •   This information was used to do:
         • 82km of 3D IP with lines @ 200m and 400m spacing.
         • Collected over 2900 soil samples and analysized using two methods.
               • Soil samples sent for 53 element ICP
               • PH Sampling
                    •   Under the direction of Dr. Barry Smee and his partner Dave Heberlein (former head
                        geochemist for Barrick Gold) conducted Ph test on every sample.

   •   2010 results generated a large area of interest in the NW corner of the property.
   •   Company has submitted for a five year drilling and geophysics permit.
   •   Specific targets have been identified for drilling and this will commence in April-
       May depending on permits.

Board of Directors & Advisors
  Conrad Swanson, President
  • For the past 23 year Mr. Swanson has proven his ability to recognize high-potential
      exploration projects. His venture capital background brings the necessary components of
      funding, management and share structure to quality resource opportunities.
  Jim Pettit, Director
  • Mr. Pettit has gathered more than 15 years of experience within the industry, actively
      specializing in compliance, corporate governance, finance and management. He has been a
      Director of Gold Reach since July 2003, and currently serves as a Director on the boards of
      six other junior resource companies.
  John Watt, Director and CFO
  • Mr. Watt is a chartered accountant who owns and operates Rosemill & Associates Inc.,
      which is a private financial consulting company that assists clients with SEC and BCSC
      compliance reporting requirements. Gold Reach appointed him as Director and CFO on
      May 1, 2006.
  Kinder Deo, Director
  • With over 30 years of experience in Information Systems, including Financial Systems and
      Audit Control, Mr. Deo understands the strict regulations for business reporting. In the past
      he has instructed the Systems Analysis course at Douglas college, BCIT, and Simon Fraser
      University, and holds a Bachelor of Technology Degree in Physics and a Masters Degree in
      Business Administration.
  Pat Glazier, Director
  • Patrick Glazier brings years of experience and a wealth of investment knowledge to the
      company. Pat joined the Gold Reach board in 2009 and is also a director of Tri Star
      Gold. He was born and raised in Prince George and that knowledge has helped Gold Reach
      in acquiring exploration projects in central BC.

  Alvin Jackson, P.Geo.
         Mr. Jackson is the Chairman of the Board of Brazilian Gold Corporation . He holds directorship of
         several public mineral exploration companies. During his 36-year geological career he has been
         directly involved with exploration and pre-feasibility studies on two major gold deposits and one
         porphyry copper deposit, all of which subsequently became producers.
         Mr. Jackson is a founding principal of EuroZinc Mining Corporation, which acquired the Aljustrel and
         Neves-Corvo copper-zinc mines in Portugal before it merged with Lundin Mining Corporation in
         2006. He was President and Chief Operating Officer of EuroZinc from 1999 to 2005. Prior to
         EuroZinc, Alvin was exploration manager for Amoco Minerals/Cyprus Minerals in Canada, Norway
         and New Zealand.

  Jim Cuttle, P.Geo.
          Mr. Cuttle has explored for precious and base metals for over 30 years in a variety of countries such
         as Norway, Africa, Mexico, Portugal, Alaska as well as most parts of Canada. He has worked with a
         suit of multi-national major and junior companies and brings a strong applied exploration
         background to the management team. Mr. Cuttle is instrumental in all of the field activities of the

  Robert Krause
         Mr. Krause has over 25 years of experience in the mining and exploration sector, having worked on
         projects in both North and South America. He serves and has served both public and private
         corporations in various positions such as; Vice President of Exploration for Wyn Developments Inc.,
         Vice President of Exploration for Starfield Resources Inc., Project Geologist for Salguiero Brazil and
         Melinga/Milagro Resources Inc., Exploration Manager for International Seadrift Exploration Ltd., and
         Mine Geologist for Skylark Resources Ltd., among others. Mr. Krause graduated from the University
         of British Columbia in 1985 with a Bachelor of Science degree in geology. Mr. Krause will be
         responsible for project supervision and management, project acquisition and technical due
Seel Project - A Copper Opportunity
                                 Huckleberry Cu-Mo-Ag Mine
                                       Our Neighbor

Oosta Lake Project - Highlights
• 88 holes drilled since 2004.

• Located under 8 kilometers southeast from the producing Huckleberry porphyry Cu-
   Mo Mine.

• Property hosts magnetic high Cu-Au porphyry and magnetic low Cu-Mo porphyry
  deposits, Cu-Ag-Zn breccia zones and structurally controlled Ag-Pb-Zn veins.

• Two porphyry deposits have been identified.
   • Seel Property – 61mt, 0.18%Cu, 0.14g/t Au, 0.01%Mo, 1.73g/t Ag    (ind. + inf. at
       0.2%Cueq cut-off)

    • OX Property – 25mt, 0.30%Cu, 0.04%Mo (0.3%Cu cutoff, Inferred)

    • Less than 5% of the property has been systematically explored by Gold Reach.

    • Damascus Vein - Historical 1968-1982, Ag-Pb-Zn 196,000 Tonnes @ 411 g/t
      Ag, 2.85% Pb, 4.63% Zn
         • Most Drilling to 30m, inferred to 100m (non NI43-101).
         • Open at depth and along strike.
Regional Geology Deposits

                                                                    OX Cu-Mo
      Huckleberry Mine

                                         Bulkley          Felsic volcanics, sediments
                                                                                        Basalt, rhyolite

                                                                 196,000 tonnes at 411 g/t Ag,
       Seel Cu-Au-Mo, Cu-Au                                           2.85%Pb, 4.63%Zn
        Breccia not included                                         Non-NI43-101 Compliant

           Andesitic volcanics

                             New Magnetic/ Radiometrics Survey
                                    Completed 2009

OX Cu-Mo Target (with possible ‘down drop’ block on east)
    Wardrop Engineering Report 2008

•   Copper – molybdenum mineralization occurs
    as quartz vein stockwork in hornfels Hazelton
    felsic and andesitic tuff peripheral to the
    west and southwest margins of a
    granodiorite porphyry stock.

•   Mineralization outcrops at surface and
    extends to at least 200 m depth

•   26 drill holes define a resource of 25 mt of
    inferred mineral resource grading 0.3%Cu
    and 0.04%Mo. (NI43-101 compliant)

•   Recommendations identify drilling along the
    eastern edge of the deposit where the
    continuation of mineralization has possibly
    been down dropped.
                                                    100 metres

Seel Porphyry Cluster/Seel Breccia – SBX (plan view)
                       Seel Breccia Target
                         NW, SE Edges

                                             Cu-Mo-Au Porphyry (all red and blue zones)
                                             61mt, 0.18%Cu, 0.010%Mo, 1.73g/t Ag
                                                          (at 0.2%Cueq cut)

          200 metres

Cu-Ag-Zn Seel Breccia - SBX                            (with flanking Cu-Au porphyry and drill traces)

    Conclusions – Goldreach 2009
                                                              NW Bx Edge
•   An intrusive breccia pipe lies beside and
    plunges steeply towards the Seel Cu-Au
    porphyry deposit.
                                                                                   Breccia core
•   The breccia extends over 230m in diameter
    with NW and SE edges hosting copper –
    silver - zinc mineralization.                                                                           SE Bx Edge

•   Historical drill core assays identify intercepts
    up to 1.01%Cu, 25g/t Ag over 80m (oblique
    cut) and 1.59%Cu, 39 g/t Ag over 18m.

•   The breccia plunges steeply towards the Seel
    Cu-Au porphyry suggesting exploration
    potential at depth.
                                                                                           Cu-Au-Mo Porphyry
                                                                                       61mt, 0.18%Cu, 0.14g/t Au,
•   Remaining portions of the breccia are open
                                                                                          0.01%Mo, 1.73g/t Ag
    for detailed exploration, near surface and at

Area 1 - Seel Cu-Ag-Zn Breccia – NW Edge                                        (drill core intercepts)

                              0.74%Cu/10.9m                         06-44





Seel Cu-Ag-Zn Breccia – SE Edge                          (drill core intercepts)

                                                                        1.59%Cu, 39g Ag/18m

                                                                                                     1.59%Cu, 0.6 Au/18m

                                               0.95%Cu, 24g Ag/12m

                                                   1.27%Cu, 40g Ag/27.5m

                                                85-9                                                1.01%Cu, 25g Ag, 2.7%Zn
                                       1.92%Cu, 0.55g Au/6.7m                                                /80m

                                     85-8                                                   1.07%Cu, 33g Ag/8m
            1.07%Cu, 33g Ag/8m                                                             85-10
                                                                                   8.26%Cu, 9.4g Au?/0.9m

                                                                        0.57%Cu, 14g Ag/22.3m

Cu-Ag-Zn Seel Breccia
                                                   Drill hole 06-42, with
                                                   chalcopyrite & pyrite
 •   An intrusive breccia pipe lies beside and
     plunges steeply towards the Seel Cu-Au
     porphyry deposit.
 •   The breccia extends over 230m in diameter
     with NW and SE edges hosting copper –
     silver – zinc - gold mineralization.
 •   Historical drill core assays identify
     intercepts up to 1.01%Cu, 25g/t Ag over
     80m and 1.59%Cu, 39 g/t Ag over 18m.
 •   Breccia plunges steeply towards the Seel
     Cu-Au porphyry suggesting exploration
     potential target at depth.
 •   Remaining portions of the breccia are
     open for detailed exploration, near surface
     and at depth.

Current Models for Future Exploration
 Huckleberry Cu-Mo “MAGENTIC LOW”                       Seel Porphyry Cu-Au “MAGNETIC HIGH”

 •162mt, 0.47%Cu, 0.014% Mo, 2.7 g/t Ag - Global        Unique magnetic ‘high’ signature for Seel Cu-Au porphyry.
 •Main , East and New pits in magnetic low.             •Similar 020, 105 and 150 structures seen from new airborne
 •Distinct east-west pyrite halo.                       magnetics. (using both total mag and 1st derivative)
 •Critical controls – junction of 020, 105 and 150      •At least 18 regional exploration targets identified using
 structures confirmed from drilling and mining at       magnetic strength and junction of structures.

                                     Huckleberry Area                                               Seel Area

               New pit

                                             East pit
                                                                                                           Seel Bx

                    Huckleberry Porphyry,
                   162mt, .47%Cu, .014% Mo


                                                                                             Seel Cu-Au Porphyry, 18mt,
                                                                                              .27%Cu, .27 g/t Au (in red)

Exploration Targets – Geophysics & Drilling

• Seel Cu-Ag-Zn Breccia
    •   Copper breccia located 100m north of Cu-Au and Cu-Mo porphyries. It remains open at
        depth, and plunges towards the porphyry.
    •   Priority testing to 700m based on Huckleberry's Breccia Hole of 493m @ 0.38 % Cu.

• OX Cu-Mo Porphyry
    •   Deposit open at depth and to the east for exploration.

• Damascus Ag-Pb-Zn
    •   Open at depth below 30m, 500m strike length open in both directions. Two other veins (K
        vein and Hilltop vein) lie to the west approximately 300meters and may be connected at
        depth based on the Damascus vein which is dipping towards them.

• Regional work
    •   In excess of 18 new Cu and Au targets identified from recent airborne magnetics and
        radiometrics survey .
    •   Four area based permits have submitted for drilling, two have been received.
    •   Geophysics planned for May 2011.
    •   Drilling planned for June 2011.

2011 Proposed Exploration Budgets
Oosta Lake Property
•   80 line km of 3DIP over some of the prioritized 18 new 80 line km of 3DIP@ $6000/km    $480,000
    geophysical anomalies on Ox and Seel

•   Drill test below the Seel resource as it is believed      2,500m @ $300/m              $750,000
    there is ore underlying the shallow drilling of the Seel,
    allowing expansion the resource of the Cu/Au breccia.
•    Also to test some of the 18 new geophysical targets      2,500m @$300/m               $750,000
    generated by the airborne geophysical survey.

    Damascus Silver Vein                                     25km @$6000/km                $150,000
•   Conduct 25 line km of 3DIP.
                                                           2,000m @$300/m                  $600,000
•   Drill test along strike and to depth the Damascus Vein

Auro Property
                                                             10,000m @ $300/m             $3,000,000
•   Drill test the Auro gold property directly adjacent to
    Richfield Resources Blackwater Project.

                                                             •   Total:               $4,980,000

Shared By: