Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

April 04, 2012 13:21 ET

Golden Reign Discovers Western Extension of San Albino Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 4, 2012) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is extremely pleased to announce that it has extended the San Albino mineralized zone approximately 150 metres down-dip by drilling. The San Albino zone represents one of at least four parallel mineralized zones contained within the San Albino Mine area of Golden Reign's flagship San Albino-Murra Gold Property (the "Property"), Nueva Segovia, Nicaragua.

The drill results are significant as:

  • they confirm the existence and continuity of the San Albino zone mineralization across at least one fault zone, continuing to the south of at least two converging fault zones (see attached K-K' Cross Section)
  • they include exceptional gold and silver grades, with 4 drill intercepts returning multi-ounce material ranging from over 60 g/t to 114 g/t gold (1.92 to 3.67 troy ounces) and from 32 g/t to 97 g/t silver (1.02 to 3.11 troy ounces) over true widths of 0.4 metres or greater
  • it marks the first time that visible gold was observed in the core for San Albino mineralization - visible gold has been noted in three drill holes SA 12-46, SA 12-61 and SA 12-67
  • they are from a previously unexplored and untested area that, unlike the rest of the 2 square kilometre San Albino Mine area, did not host historical workings.

The Company stepped out 100 metres to the west of the historic San Albino Mine to test the down-dip extension of the San Albino mineralized zone (see attached Drill Hole Plan map). In all, 28 drill holes cored from 14 drill locations are planned for this fence of diamond drilling.

Results from 8 drill holes completed from 4 drill pads in the northern section of the western-most fence have been received. Highlights from the San Albino zone include:

  • SA 12-49 6.50 metres of 13.45 g/t gold and 16.6 g/t silver
    • including 1.50 metres of 54.47 g/t gold and 63.4 g/t silver
  • SA 12-48 6.00 metres of 9.07 g/t gold and 14.3 g/t silver
    • including 2.40 metres of 17.95 g/t gold and 25.1 g/t silver
  • SA 12-47 5.50 metres of 3.66 g/t gold and 8.0 g/t silver
    • including 1.62 metres of 10.71 g/t gold and 18.6 g/t silver
  • SA 12-46 5.50 metres of 20.70 g/t gold and 16.6 g/t silver
    • including 2.20 metres of 23.29 g/t gold and 16.3 g/t silver
  • SA 12-50 3.50 metres of 3.05 g/t gold and 3.8 g/t silver
    • including 1.50 metres of 6.78 g/t gold and 7.2 g/t silver
  • SA 12-45 1.89 metres of 4.75 g/t gold and 19.0 g/t silver
    • including 0.59 metres of 14.54 g/t gold and 58.8 g/t silver

The strike length of the San Albino mineralized zone is approximately 600 metres, with a newly demonstrated down-dip extent of 150 metres. The mineralized zone remains open along strike in all directions and at depth.

The Company has already tested and demonstrated the down-dip extension of Arras, a second high-grade near-surface mineralized structure, over 600 metres. The Arras mineralized zone also remains open along strike and at depth. Golden Reign believes that with additional drilling it may be possible to obtain a similar down dip extent for the San Albino mineralized zone.

The San Albino Mine area represents only 2 square kilometres within the highly prospective 87 square kilometre San Albino-Murra Gold Property. Presently, Golden Reign has three drill rigs active at the San Albino Mine area.

The 2011/2012 definition drill program is designed to extend the mineralized area outlined in 2010, refine the geological model, and obtain sufficient data to calculate a NI 43-101 compliant mineral resource for the San Albino Mine area.


Drill hole#

Sample #
From
(m)
To
(m)
Width
(m)
Au
(g/t)
Ag
(g/t)
SAN ALBINO ZONE
Drill hole SA 12-45 (130/90), a vertical hole, was drilled to a depth of 322.00 metres. The mineralized interval was 1.89 metres grading 4.75 g/t gold and 19.0 g/t silver.
SA 12-45 9418 72.61 73.20 0.59 15.82 58.8
SA 12-45 9420 73.20 74.50 1.30 0.31 1.0
Drill hole SA 12-46 (130/70) was drilled to a depth of 100.95 metres. Mineralization was over 5.50 metres averaging 20.70 g/t gold and 16.6 g/t silver, including 2.20 metres of 23.29 g/t gold and 16.3 g/t silver which includes 1.25 metres grading 35.82 g/t gold and 16.2 g/t silver.
SA 12-46 110117 69.00 69.75 0.75 0.05 0.7
SA 12-46 110118 69.75 70.25 0.50 114.18 75.8
SA 12-46 110120 70.25 70.58 0.33 0.98 0.2
SA 12-46 110121 70.58 71.15 0.57 8.53 25.0
SA 12-46 110123 71.15 72.10 0.95 6.81 16.3
SA 12-46 110125 72.10 72.80 0.70 3.85 3.9
SA 12-46 110127 72.80 73.35 0.55 76.50 31.9
SA 12-46 110129 73.35 74.50 1.15 0.24 2.5
Drill hole SA 12-47 (130/90) was drilled to a depth of 145.60 metres. The mineralized intersection returned 5.50 metres grading 3.66 g/t gold and 8.0 g/t silver, including 1.62 metres of 10.71 g/t gold and 18.6 g/t silver.
SA 12-47 110196 71.00 72.00 1.00 0.57 0.5
SA 12-47 110197 72.00 72.88 0.88 0.15 1.5
SA 12-47 110198 72.88 73.90 1.02 2.39 2.5
SA 12-47 110200 73.90 74.50 0.60 24.85 46.1
SA 12-47 110202 74.50 75.50 1.00 0.38 7.4
SA 12-47 110203 75.50 76.50 1.00 1.72 4.5
Drill hole SA 12-48 (130/70) was drilled to a depth of 88.00 metres. The mineralized intersection returned 6.0 metres grading 9.07 g/t gold and 14.3 g/t silver, including 2.40 metres of 17.95 g/t gold and 25.1 g/t silver. One 0.4 metre section, sample #110281, of very high grade material returned 66.71 g/t gold and 96.6 g/t silver.
SA 12-48 110271 64.00 65.00 1.00 0.28 0.6
SA 12-48 110272 65.00 65.50 0.50 20.47 44.8
SA 12-48 110274 65.50 66.00 0.50 0.30 1.2
SA 12-48 110276 66.00 66.50 0.50 0.25 1.6
SA 12-48 110277 66.50 67.23 0.73 2.59 2.2
SA 12-48 110279 67.23 67.80 0.57 22.74 23.0
SA 12-48 110281 67.80 68.20 0.40 66.71 96.6
SA 12-48 110283 68.20 68.90 0.70 2.19 9.7
SA 12-48 110284 68.90 70.00 1.10 0.49 1.1

Drill hole#

Sample #
From
(m)
To
(m)
Width
(m)
Au
(g/t)
Ag
(g/t)
Drill hole SA 12-49 (130/90) was drilled to a depth of 119.30 metres. The mineralized intersection returned 6.50 metres grading 13.45 g/t gold and 16.6 g/t silver, including 1.50 metres of 54.47 g/t gold and 63.4 g/t silver.
SA 12-49 110312 58.00 59.00 1.00 0.11 0.4
SA 12-49 110313 59.00 60.00 1.00 49.45 47.6
SA 12-49 110315 60.00 60.50 0.50 64.51 94.9
SA 12-49 110317 60.50 61.50 1.00 0.57 1.3
SA 12-49 110318 61.50 62.50 1.00 0.09 0.8
SA 12-49 110319 62.50 63.50 1.00 0.10 2.3
SA 12-49 110321 63.50 64.50 1.00 4.85 7.9
Drill hole SA 12-50 (130/70) was drilled to a depth of 295.40 metres. The mineralized intersection returned 3.50 metres grading 3.05 g/t gold and 3.8 g/t silver, including 1.50 metres of 6.78 g/t gold and 7.2 g/t silver.
SA 12-50 110371 65.50 66.20 0.70 7.91 10.3
SA 12-50 110373 66.20 67.00 0.80 5.80 4.4
SA 12-50 110375 67.00 68.00 1.00 0.18 0.5
SA 12-50 110376 68.00 69.00 1.00 0.33 2.0
Drill hole SA 12-51 (130/90) was drilled to a depth of 138.30 metres. The drill hole was cored near the junction of two intersecting fault zones and, as a result, no significant mineralized intercepts were recovered; however, anomalous values were received. The mineralized intersection returned 1.0 metre grading 0.18 g/t gold and 1.3 g/t silver.
SA 12-51 110567 54.50 55.50 1.00 0.18 1.3
Drill hole SA 12-52 (130/70) was drilled to a depth of 354.90 metres. As with drill hole SA 12-51, this drill hole was cored near the junction of two intersecting fault zones and, as a result, no significant mineralized intercepts were recovered; however, anomalous values were received. The mineralized intersection returned 4.0 metres grading 0.18 g/t gold and 0.6 g/t silver.
SA 12-52 110662 62.00 63.00 1.00 0.10 0.3
SA 12-52 110663 63.00 64.00 1.00 0.11 0.6
SA 12-52 110664 64.00 65.00 1.00 0.09 0.6
SA 12-52 110666 65.00 66.00 1.00 0.43 0.9

Qualified Person

John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release.

On behalf of the Board,

Kim Evans, CGA, President & CEO

About Golden Reign:

Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.

The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company's land package.

Nicaragua, a mining-friendly jurisdiction, is situated in the Central American Gold Belt, which extends from Costa Rica in the south to Guatemala in the north. Within this prolific gold belt, estimates of historical production total more than 20 million ounces.

For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.

Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.

Note: To view the maps associated with this release, please click the following link: http://media3.marketwire.com/docs/grr0404.pdf.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Golden Reign Resources Ltd.
    Kim Evans, CGA
    President & CEO
    (604) 685-4655 or Toll Free: 1-888-685-4655
    (604) 685-4675 (FAX)
    www.goldenreign.com