Goldrush Resources Ltd. (TSXV: GOD) – Initiating Coverage; Gold ...

Goldrush Resources Ltd (TSXV: GOD) – Initiating Coverage Page 10Table 1: Ronguen Deposit NI43-101 Resources - March, 2008*The reported cut-off grade of 0.5 g/t gold is based on a metal price assumption of US$685 perounce. (Source: Company)At the time the resource estimate was completed, exploration had identified goldmineralization only to a depth of 80 meters. Logic would suggest that increasing thevertical extent of mineralization from 80 to 160 metres with similar widths and gradesshould dramatically increase the total number of contained ounces. We are comfortablesuggesting that the deposit contains a minimum of 0.5 million ounces of gold.Current Status: Phase II of the 2010 drilling and trenching program was recentlycompleted. The program included 37 reverse circulation drill holes totaling 3,396 metresand 3 trenches totaling 360 metres. The Phase II program was designed to:• Continue to test the Ronguen Main Zone at depth.• Test for extension of the Ronguen Main Zone along strike to the west.• Complete in-fill drilling in various inadequately defined areas of the RonguenMain Zone.• Drill test the Ronguen South Zone to depth of 40 vertical metres.Other PropertiesDevelopment Timeline: The company will begin a 4,000 metre RAB drill program onoutlying targets on the Kongoussi and Tikare permits in November, 2010, to be followedby further RC drilling in Q1-2011. The Ronguen deposit still requires a lot of work. Weanticipate the company may pursue an upgraded resource estimate for the Ronguen MainZone once drilling has tested the full length to a depth of 160 metres.Salbo – Summary: The Salbo exploration permit covers 146.2 square kilometresapproximately 35 kilometres south of the Kindo Group. The permit is contiguous with,and to the south of, the permits hosting High River’s Bissa deposit. Rock and soil samplingalong with geological mapping conducted in 2008, identified three NE-SW mineralizedtrends. The main trend (Trend 1 in Figure 8a) extends for approximately 2 kilometres andincludes an artisanal mining site. Highlight assay results are shown in Figure 8a.Taparko Group - SummaryThe Ouavousse (244.36 sq km) and Bougou I (72.44 sq km) exploration permits composethe company’s Taparko group; the permits are respectively, 120 km and 200 km northeastof Ouagadougou. The Bougou I permits share a boundary with High River’s Taparko-Bouroum mine which declared commercial production in 2007. The Taparko-Bourammine has proven and probable reserves of 7.97 million tonnes at a grade of 2.81 g/t gold(0.72 mm oz contained).© 2010 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA, CFAPLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT