ATLANTA, June 19, 2007 (PRIME NEWSWIRE) -- OTC Stock Review announces that it has published a report on Goldrea Resources Corp. (TSX-V:GOR) (Pink Sheets:GORAF) (Frankfurt:GOJ). Goldrea Resources Corp., headquartered in White Rock, BC, agreed to purchase 80% of the operating Daye gold mine, with a rated capacity of 1750 tons per day, located in the Shandong Province, China, near Rushan City. Goldrea is proceeding with a two-year audit in the Daye Mining company and formulating a five-year mine plan to bring production up to the 60,000-to-75,000-ounce capabilities. China is the world's fourth largest producer of gold, with the Shandong Province alone accounting for 26% of the overall Chinese total. To put that in perspective, in 2004 China produced over 212 tons of gold, of which 64.5 tons came from Shandong Province.
An NI 43-101 compliant resource analysis has defined an Indicated Resource of 331,175 ounces gold and an Inferred Resource of 275,968 ounces gold. The purchase price of approximately C$16.6 million (US$15 million) is to be paid over five years, with Goldrea offering employees of Daye an option to purchase 10% of its 80% interest. The Daye gold mine adjoins Goldrea's existing China joint venture, Rushan Goldrea Inc.
Goldrea recently completed a C$10 million financing to that will be used for the completion of the Chinese joint venture and general corporate working capital.
We could see additional small to mid-cap Gold producers added to the package. Almost all of the foreign companies operating in China have been focused on exploration since China is already producing massive amounts of precious, base and ferrous metals. In fact China's contributes 10% of the world's gold, 23% of world's lead, 18% of world's zinc, and 75% of world's Tungsten. There are many producing mines in China and, unlike the herd, that is where Goldrea will be aligning itself. Tortuga Merchants has cooperatively developed a staged strategy for Goldrea in China centered on sourcing and negotiating the acquisition of various producing mining assets in China, modifying production techniques and methodologies to increase production yield, and expanding operations through cash flow and new capital investment to increase production to global standards. Most producing gold mines in China are outputting less than fifty thousand ounces of gold per year. In many cases these operations are sitting on large ore bodies of quality grade. There has been a historical lack of significant capital investment in these mines keeping them producing below global standards.
The complete report is available at http://www.otcstockreview.com/Files/GORAF/Goldrea_Resources_Review.pdf.
View OTC Stock Review's complete coverage on Goldrea Resources Corp. at http://www.otcstockreview.com/goraf.htm.
Additional information on Goldrea Resources Corp. is available at http://www.goldrea.com.
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