Goldrea Expands Cannonball Project and Now Controls All Advanced Copper Gold Prospects Adjoining Seabridge's Iskut Project

Rhea-AI Summary

Goldrea Resources Corp. (CSE: GOR, OTC Pink: GORAF) has expanded its Cannonball Project by signing LOIs to acquire a 50% interest in nine mineral claims (514ha) adjoining the project. The expanded project now covers 5,478 ha and straddles the projected northeast extension of a district-scale structural corridor connecting three advanced porphyry targets reported by Seabridge Gold.

To acquire the 50% interest, Goldrea must incur $550,000 in exploration expenditures, pay $190,000 to the underlying vendor, and issue 750,000 shares by October 31, 2025. The new prospects include the King-Mist Zone, Rumble Creek Prospect, and North Zone, all located within the projected extension of the structural corridor.

Seabridge Gold is currently conducting a $12 million follow-up drilling program on the nearby Iskut Project, demonstrating the importance of this new porphyry district.

Positive

• Expansion of Cannonball Project to 5,478 ha, potentially increasing mineral resources
• Strategic location straddling a district-scale structural corridor with advanced porphyry targets
• Acquisition of 50% interest in new prospects with historical high gold values
• Proximity to Seabridge Gold's $12 million drilling program, indicating area's potential

Negative

• Required $550,000 in exploration expenditures and $190,000 payment for 50% interest acquisition
• Issuance of 750,000 shares by October 31, 2025, potentially diluting existing shareholders

Vancouver, British Columbia--(Newsfile Corp. - August 2, 2024) - Goldrea Resources Corp. (CSE: GOR) (FSE: GOJ1) (OTC Pink: GORAF) is pleased to announce that the Company has signed LOI's to acquire a 50% interest in nine mineral claims (514ha.) that cover multiple gold prospects adjoining the Company's Cannonball Project.

As noted in the Company's March 4, 2024 press release, the Cannonball Project, now covering a total of 5,478 ha., straddles the projected northeast extension of a district scale, structural corridor (reported by Seabridge Gold on December 14, 2023) connecting three advanced porphyry targets; Snip North, Bronson Slope and Quartz Rise. The Seabridge press release further stated that these prospects are similar to the cluster of porphyry systems defined at their KSM project, located approximately fifty kilometers to the southeast, and Seabridge is currently conducting a $12 million follow up drilling program on the Iskut Project involving three drill rigs.

The LOI's, signed July 30, 2024, include an agreement with Tana Resources to acquire a 50% interest in 443.20 ha. referred to as the Double T Property and an agreement with Garibaldi Resources Corp. to add one tenure (70.90ha) to the existing King Property Joint Venture. To acquire the 50% interest, Goldrea must incur $550,000 in exploration expenditures and pay $190,000 to the underlying vendor and issue a total of 750,000 shares by October 31, 2025.

Goldrea's exploration work since 2020 has confirmed the Cannonball Project hosts multiple porphyry copper-gold and vein type copper-gold prospects which are described in the Company's March 4 press release. The new prospects include the King-Mist Zone; a series of exposed quartz veins containing high gold values over an area of approximately 500 square meters, the Rumble Creek Prospect (According to BC Ministry of Mines Minfile records indicate gold values up to 47 g/t gold were reported in the 1980's.), and the North Zone which is a skarn type, polymetallic prospect that exhibits high silver values. Independent consultants retained by Tana Resources have recommended drilling at the King-Mist Zone and the North Zone and all of the new prospects are located within the projected extension of the structural corridor reported by Seabridge.

Recent studies by Goldrea's consultants provide confirmation that the underlying rock units are the same age as the rocks that host the world class deposits that have been discovered throughout the Golden Triangle. To view the recent studies and technical maps prepared by Goldrea's consultants click this link: https://goldrea.com/wp-content/uploads/2024/02/jan-19-tech-memo.pdf

Jim Elbert commented that: "Seabridge Gold's ongoing work on their Iskut Project and recognition that the Cannonball Project straddles the same structural corridor were major milestones in 2023. The $12 million drill program Seabridge allocated for drilling during 2024 demonstrates the importance of this new porphyry district. The new acquisitions give Goldrea effective control of all of the advanced copper gold prospects with historic drilling/geophysics adjoining the Iskut Project."

Carl von Einsiedel (P. Geo.), is a non-independent Qualified Person within the meaning of National Instrument 43-101 Standards, and has prepared, reviewed and approved the scientific and technical information included in this press release.

For more information, please contact:

James Elbert, President and CEO

Telephone: (604) 559-7230

Email: jelbert@goldrea.com

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218603

FAQ

What is the total area of Goldrea's expanded Cannonball Project?

Goldrea's expanded Cannonball Project now covers a total area of 5,478 hectares after signing LOIs to acquire a 50% interest in nine additional mineral claims.

What are the terms of Goldrea's acquisition for the new mineral claims?

To acquire the 50% interest, Goldrea must incur $550,000 in exploration expenditures, pay $190,000 to the underlying vendor, and issue 750,000 shares by October 31, 2025.

What are the new prospects included in Goldrea's Cannonball Project expansion?

The new prospects include the King-Mist Zone with high gold values, the Rumble Creek Prospect with historical gold values up to 47 g/t, and the North Zone, a skarn-type polymetallic prospect with high silver values.

How does Seabridge Gold's activity relate to Goldrea's GORAF stock?

Seabridge Gold's $12 million drilling program on the nearby Iskut Project demonstrates the potential of the area, which could positively impact Goldrea's GORAF stock due to its strategic position in the same porphyry district.