Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

June 06, 2012 08:02 ET

Golden Reign Drills Additional Near-Surface, High-Grade Gold Mineralization on Corona de Oro Gold Belt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2012) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to report additional results from its 2011/2012 definition drill program at the San Albino Mine area of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

The San Albino Mine area, which covers only 2 square kilometres of the Company's 138 square kilometre land package, is the first of several targets being tested within the Corona de Oro Gold Belt. This gold belt spans the entirety of the Company's landholdings and is approximately 3 kilometres wide by 25 kilometres long.

Drilling and trenching indicate the strong potential for a high-grade open-pittable resource at the San Albino Mine area. At present, the potential open-pittable portion of the San Albino zone has a strike length of 400 metres and a down-dip extension of 300 metres. Mineralization, which follows the slope of the San Albino hill, has been intersected from surface to a depth of up to 50 metres.

Drilling continues to outline the San Albino zone, confirming the continuity of near-surface high-grade gold mineralization.

Drilling highlights from the San Albino zone include:

- SA 12-92 9.30 metres of 11.01 g/t gold and 29.8 g/t silver
including: 3.30 metres of 24.14 g/t gold and 73.5 g/t silver and
3.00 metres of 7.50 g/t gold and 10.6 g/t silver
- SA 12-91 4.50 metres of 12.65 g/t gold and 24.9 g/t silver
including: 0.90 metres of 22.43 g/t gold and 47.9 g/t silver and
3.60 metres of 10.21 g/t gold and 19.1 g/t silver
- SA 12-90 4.00 metres of 13.20 g/t gold and 31.8 g/t silver
including: 2.50 metres of 25.46 g/t gold and 47.1 g/t silver
- SA 12-59 4.00 metres of 20.44 g/t gold and 42.7 g/t silver
including: 1.50 metres of 49.97 g/t gold and 79.9 g/t silver
- SA 12-57 6.00 metres of 6.66 g/t gold and 10.0 g/t silver
- AR 11-24 10.50 metres 5.02 g/t gold and 8.0 g/t silver
including: 3.00 metres of 16.99 g/t gold and 22.6 g/t silver

Note: All grades presented are uncut and all thicknesses are estimated true thicknesses.

Golden Reign's target for the open-pittable resource is a 2.0 to 4.0 metre wide mineralized zone, averaging 6.0 to 10.0 g/t gold. Presented in the table below are near-surface drill intersections of the San Albino zone grading over 1.0 g/t gold.

Drill
Hole
From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Ag
(g/t)
SA 12-55 16.00 17.50 1.50 1.74 0.6
SA 12-57 19.00 25.00 6.00 6.66 10.0
SA 12-58 16.50 19.00 2.50 4.33 10.1
SA 12-59 33.00 37.00 4.00 20.44 42.7
SA 12-90 26.00 30.00 4.00 13.20 31.8
SA 12-91 29.00 33.50 4.50 12.65 24.9
SA 12-92 34.00 43.30 9.30 11.01 29.8
AR 11-24 7.50 18.00 10.50 5.02 8.0
AR 12-27 14.30 18.30 4.00 2.11 5.9
AR 12-29 30.90 31.50 0.60 12.41 34.9
AR 12-30 20.50 23.50 3.00 2.38 7.0
AR 12-32 17.50 19.50 2.00 4.94 15.0
AR 12-33 18.50 19.50 1.00 17.87 48.2

A number of previously reported drill holes (see news release dated November 21, 2011) which also intersected near-surface San Albino mineralization are as follows:

Drill
Hole
From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Ag
(g/t)
SA 10-01 29.00 33.00 4.00 7.38 58.9
SA 10-02 54.00 56.00 2.00 29.32 17.2
SA 10-03 45.12 47.25 2.13 10.75 17.5
SA 10-04 46.40 49.00 2.60 2.36 3.4
SA 10-05 44.00 45.00 1.00 2.30 2.4
SA 10-06 48.20 51.30 3.10 22.40 23.1
SA 10-07 25.80 28.00 2.20 4.56 7.8
SA 10-08 39.62 41.48 1.86 6.03 7.8
SA 10-09 38.90 42.73 3.83 24.98 17.6
SA 11-12 49.00 56.00 7.00 8.40 14.8
SA 11-13 49.70 51.00 1.30 10.14 24.6
SA 11-41 39.00 41.00 2.00 3.51 7.3
SA 11-42 41.00 45.00 4.00 4.48 12.3
SA 11-43 33.00 34.00 1.00 4.22 9.1

Drill results correlate strongly with the recent trenching results from the eastern slope of San Albino hill (see news release dated May 24, 2012) which extended the zone for an additional 75 metres to the east. Some highlights from trenching of the eastern slope include:

- SAT-12-05 10.0 metres of 48.44 g/t gold and 40.1 g/t silver
- SAT-12-06 8.0 metres of 9.53 g/t gold and 12.3 g/t silver
including 4.0 metres of 17.49 g/t gold and 22.7 g/t silver
- SAT-12-01 6.0 metres of 16.36 g/t gold and 10.5 g/t silver
- SAT-11-01 7.0 metres of 8.80 g/t gold and 24.4 g/t silver

Golden Reign is currently completing additional trenching on the eastern slope of San Albino hill to test for the extension of the mineralized zone.

The Company has completed a total of 27,087 metres in 144 drill holes, representing 90% of the 2011/2012 definition drill program. Underground and open-pittable resources are currently being evaluated.

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 recently earned an 80% interest in the San Albino-Murra Property, approximately 1.5 years ahead of schedule. The El Jicaro Property is 100% owned by Golden Reign.

The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and 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 map associated with this release, please click the following link: http://media3.marketwire.com/docs/grr0606.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