Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

December 09, 2010 13:02 ET

Golden Reign Intersects 1.15 metres of 31.15 g/t Gold and 83.6 g/t Silver at Arras

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSX VENTURE:GRR) is pleased to report final assay results from the 2010 drill program conducted at its San Albino-Murra Gold Property (the "Property"), Nicaragua.

A total of five diamond drill holes were completed at the Arras prospect, located approximately 450 metres southeast of the San Albino Mine. Drill holes AR10-01, AR10-03, AR10-04 and AR10-05 all intersected the Arras zone mineralization, with the best intercepts returning:

  • AR10-01 1.15m of 31.15 g/t gold and 83.6 g/t silver
  • AR10-03 2.14 metres of 21.43 g/t gold and 47.3 g/t silver

Drilling at Arras has confirmed high-grade, near surface mineralization. The silver to gold ratio is roughly 2:1 at Arras, as compared to the 1:1 silver to gold ratio received from drilling at the San Albino Mine.

A cross-section running from San Albino drill hole SA10-06 to the Arras surface showing indicates that the Arras mineralized zone can be traced 450 metres down dip. The Arras zone, which has already been traced for 200 metres along strike, is open in both directions and down dip. The third intersection in drill hole SA10-06, which returned 4.0 metres of 13.67 g/t gold and 31.41 g/t silver including 0.8 metres of 42.28 g/t gold and 123.0 g/t silver, and the Arras mineralization are not only visually similar but also chemically similar in that the silver to gold ratio is approximately 2:1. A copy of the cross-section is included below and is available on the Company's website at www.goldenreignresources.com.

Large, regional shear zones host the mineralized zones and are responsible for continuity of both grade and thickness within the mineralized zones.

The Arras drill program was designed to compare the grades and thicknesses achieved by core drilling against those received by reverse circulation drilling. Drilling by the previous operator was mainly done by Reverse-Circulation (RC) drilling, which tends to average grades over longer length of intersection. The Company twinned RC holes which carried significant values and thickness of gold mineralization.

AR10-01 (130/90) – 85.50 metres

                   From 80.77m to 81.40m - 3.23m of 12.08 g/t Au and 32.41 g/t Ag
Including: From 82.10m to 83.25m - 1.15m of 31.15 g/t Au and 83.6 g/t Ag

Sample No. From (m) To (m) Length (m) Gold (g/t) Silver(g/t)
172298 80.77 81.40 0.63 2.58 8.9
172299 81.40 82.10 0.70 0.09 2.7
172300 82.10 83.25 1.15 31.51 83.6
172301 83.25 84.00 0.75 1.47 1.4

Drill hole AR10-01 twinned reverse circulation hole SARC021, which was drilled by the prior operator and intersected 4.0 metres of 16.3 g/t gold.

AR10-02 (130/60) – 90.83 metres

Drill hole AR10-02 was collared in the same location as AR10-01; however, due to drilling difficulties encountered the hole was terminated before it reached the mineralized zone.

AR10-03 (130/90) – 21.34 metres

                   From 1.52m to 4.88m - 3.36 metres of 15.79 g/t Au and 36.70 g/t Ag
Including: From 2.74m to 4.88m – 2.14 metres of 21.43 g/t Au and 47.3 g/t Ag

Sample No. From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
172350 0.00 1.52 1.52 0.16 14.8
172351 1.52 2.74 1.22 5.90 18.1
172352 2.74 4.88 2.14 21.43 47.3

And            2.13 metres of 5.55 g/t Au and 14.14 g/t Ag
Including: 1.22 metres of 8.78 g/t Au and 21.1 g/t Ag

Sample No. From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
172355 7.92 9.14 1.22 8.78 21.1
172357 15.85 16.76 0.91 1.22 4.8

Drill hole AR10-03 twinned reverse circulation hole SARC013 which returned 4 metres of 28.2 g/t gold when drilled by the prior operator.

AR10-04 (130/55) – 25.91 metres

                   From 6.10m to 16.76m - 10.66 metres of 4.67 g/t Au and 15.72 g/t Ag
Including: From 7.62m to 10.67m - 3.05 metres of 10.92 g/t Au and 26.60 g/t Ag

Sample No. From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
172361 6.10 7.62 1.52 3.11 32.8
172362 7.62 10.67 3.05 10.92 26.6
172363 10.67 13.72 3.05 3.11 6.7
172364 13.72 16.76 3.04 0.74 5.3

Drill hole AR10-04 had very poor core recovery. Samples were taken between footage blocks.

AR10-05 (132/55) – 21.34 metres

         From 0.00m to 1.83m -- 1.83 metres of 1.63 g/t Au and 11.3 g/t Ag
And: From 2.20m to 12.72m – 1.52 metres of 3.61 g/t Au and 9.5 g/t Ag

Sample No. From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
172365 0.00 1.83 1.83 1.63 11.3
172366 1.83 2.44 0.61 0.22 7.1
172377 12.20 13.72 1.52 3.61 9.5

Drill hole AR10-05 also had poor core recovery.

Qualified Person

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

On behalf of the Board,

Kim Evans, CGA, President & CEO

To view the map accompanying this press release please visit the following link: http://media3.marketwire.com/docs/GRRMap129.pdf

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 located in Nueva Segovia, Nicaragua. Held under a 25 year mining license expiring February 3, 2027, the property covers an area of 8,700 hectares (87 sq km).

The Company has outlined a structural corridor approximately 3 kilometres wide by 15 kilometres long, which spans the Property, stretching from Las Conchitas in the south to the northeast mining town of Murra. Old workings exist along the corridor. The San Albino Mine flanks the northwestern edge of this structural trend.

Under the terms of the option agreement, the Company may acquire an 80% interest in the Property over a four year period by making cash payments totalling US$450,000, issuing 4,000,000 common shares from treasury and incurring aggregate exploration expenditures of US$5,000,000.

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.

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.goldenreignresources.com