Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

June 18, 2012 12:13 ET

Golden Reign Intersects 212.69 g/t Gold and 204.2 g/t Silver Over 1.0 Metre at San Albino Mine Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2012) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is very pleased to report a multi-ounce gold and silver intercept of Arras zone mineralization in drill hole AR 12-36.

Drill hole AR 12-36 returned one metre grading 212.69 g/t (6.21 oz/ton) gold and 204.2 (6.0 oz/ton) silver at 222.0 metres depth. It represents the most northern intersection of the Arras mineralized zone drilled to date.

This high-grade gold intersection of the Arras mineralized zone appears to be similar in width, grade and style of mineralization to drill hole SA 11-41, which is located approximately 210.0 metres to the west. SA 11-41 was the first hole in which the Company intersected visible gold in drill core. Visible gold was also evident in drill hole AR 12-36.

SA 11-41 returned 2.0 metres of 85.86 g/t gold and 35.1 g/t silver, including 1.0 metre of 171.62 g/t (5.00 oz/ton) gold and 68.8 g/t (2.0 oz/ton) silver, comprised of 0.5 metres of 109.05 g/t (3.18 oz/ton) gold and 48.2 g/t (1.4 oz/ton) silver plus 0.5 metres of 234.19 g/t (6.83 oz/ton) gold and 89.4 g/t (2.6 oz/ton) silver.

The Company believes both drill holes, located in an area of extensive underground workings, may have intersected a high-grade mineralized zone. Additional testing is required.


Drill
hole #


Sample #

From
(m)

To
(m)

Width
(m

Metallic
Screen
Au (g/t)
Fire
Assay
Au (g/t)

Ag
(g/t)
AR 12-36 Arras mineralized intersection was 1.0 metres grading 212.69 g/t gold and 204.2 g/t silver. Fire assay of the same interval returned 278.9 g/t gold.
AR 12-36 42178 222.00 223.00 1.00 212.69 278.9 204.2



Drill
hole #



Sample #


From
(m)


To
(m)


Width
(m)

Metallic
Screen
Au (g/t)


Ag
(g/t)
SA 11-41 Arras mineralized intersection, tested by metallic screen method, returned 2.0 metres grading 85.86 g/t gold and 35.1 g/t silver, including 1.0 metre grading 171.62 g/t gold and 68.8 g/t silver.
SA 11-41 8776 217.00 217.50 0.50 0.08 1.2
SA 11-41 8778 217.50 218.00 0.50 109.05 48.2
SA 11-41 8780 218.00 218.50 0.50 234.19 89.4
SA 11-41 8782 218.50 219.00 0.50 0.11 1.4
All reported drill intersections are true width.

The Company is currently completing its 2011/2012 definition drill program at the San Albino Mine area of its flagship San Albino-Murra Gold Property, Nueva Segovia, Nicaragua. The San Albino Mine area represents only 2 square kilometres within the highly prospective Corona de Oro Gold Belt. This gold belt spans the Company's 138 square kilometre land package and is approximately 3 kilometres wide by 25 kilometres long.

Sample Analysis

In 2012, the Company instituted a system of a 30 gram fire assay with an atomic absorption finish for samples less than 10g/t gold and a gravimetric finish for samples greater than 10 g/t gold. For all samples assaying greater than 1.0 g/t gold from the analysis, the Company also subjected the sample to a 500 gram metallic screen analysis. The metallic screen procedure is as follows: The samples were crushed to -10 mesh, then split to produce a 500 gram sample which was couriered via DHL to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. The 500 gram sample was then pulverized to -150 mesh and sieved through a 150 mesh screen. All of the sample that didn't go through the screen (+150 mesh) was weighed and fire assayed. Two 30 gram samples of the -150 mesh fractions were fire assayed for gold and averaged. The two sets of assays were combined with a weighted average to produce a total gold value for the 500 gram sample. Due to the coarse nature of gold mineralization on the property, the Company combined simple fire assays and metallic screen analysis. The metallic screen method is considered to be an industry best practice for dealing with coarse gold mineralization reducing the effects of gold nuggets in the sample. Amongst assay techniques, the metallic screen method provides the most representative gold values. Golden Reign uses metallic screen analysis for compilation of its assay database and will be used for its resource calculations.

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.

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.goldenreign.com