Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

November 22, 2010 14:50 ET

Golden Reign Intersects 3.83 Metres of 24.98 g/t Gold and 17.65 g/t Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to report the latest assay results from drilling at its San Albino-Murra Gold Property (the "Property"), Nicaragua.

Drill holes SA10-07, SA10-08 and SA10-09 all intersected the San Albino Zone (Gold Zone 1) mineralization, with the best intercept returning:

SA10-09 3.83 metres of 24.98 g/t Au and 17. 65 g/t Ag
   
  including 2.0 metres of 39.30 g/t Au and 21.0 g/t Ag

Drilling at the historic San Albino Mine has confirmed the uniformity of high-grade near-surface mineralization, both in thickness and grade. As previously reported, several drill holes returned excellent gold intervals over significant widths:

  • SA10-06 averaged 22.40 g/t gold over 3.1 metres
  • SA10-02 averaged 29.32 g/t gold over 2.0 metres
  • SA10-03 averaged 10.75 g/t gold over 2.13 metres
  • SA10-01 averaged 7.35 g/t gold over 4.0 metres

Results from drill holes SA10-01 through SA10-09 correlate strongly with historical underground sampling of the 200, 300 and 400 levels of the San Albino Mine. Systematic sampling in 1919 and 1935 was conducted to effectively define ore grade and to ensure an economically optimized mill feed during the mining operation.

  • On the 200 and 300 levels, sampling recorded a grade of 0.70 ounces gold per ton (24 g/t gold) over a strike length of 70 metres and an average vein width of 1.33 metres
  • On the 400 level, sampling returned a grade of 0.89 ounces gold per ton (30.7 g/t gold) over a strike length of approximately 70 metres and an average vein width of 1.25 metres

A 3D model of drilling completed at San Albino is now available on the Company's website at www.goldenreignresources.com.

The San Albino Gold Zone, which hosts the San Albino Mine, has been extended from 70 metres to 200 metres along strike. Additionally, the zone has been extended to depth by up to 50 metres from level 400, giving merit to historical projections for the development of new levels, 500 and 600, at San Albino Mine. The San Albino Zone remains open in both directions along strike and at depth. This zone is one of four parallel zones being investigated in the area of the San Albino Mine.

The San Albino Mine area has an excellent potential to host a significant gold deposit. The discovery of three new mineralized zones has greatly expanded the size potential of such a deposit. All four gold zones remain open along strike and at depth.

Golden Reign is awaiting the results for five diamond drill holes completed at the Arras Mine area, situated approximately 450 metres to the south-east of the San Albino Mine.

The more significant drill results, with accompanying comments, from drill holes SA10-07 to SA10-09 are tabulated below:

SA10-07 (130/80) – 219.46 metres

Zone 1: San Albino Zone

From 25.80m to 28.00m -- 2.2m of 4.56 g/t Au and 7.82 g/t Ag

Sample From To Length Gold Silver
No. (m) (m) (m) (g/t) (g/t)
171920 25.80 26.45 0.65 8.39 12.4
171921 26.45 28.00 1.55 2.95 5.9

Drill hole SA10-07 was collared in the same location as drill hole SA10-06 which intersected four mineralized structures. SA10-07 intersected over two metres of excellent mineralization in Zone 1. However, the hole was drilled into a major fault zone which limited depth and recovery, preventing the intersection of Gold Zones 2 through 4.

SA10-08 (130/55) – 43.28 metres

From 39.62m to 41.48m -- 1.86m of 6.04 g/t Au and 7.83 g/t Ag

Sample From To Length Gold Silver
No. (m) (m) (m) (g/t) (g/t)
172065 39.62 40.12 0.50 0.96 4.9
172067 40.12 41.48 1.36 7.91 8.9

Difficulties with coring the hole and recovery, led to the early termination of SA10-08 at a depth of 43.28 metres - just below the San Albino Zone mineralization.

SA10-09 (150/55) – 284.38 metres

Zone 1: San Albino Zone

From 38.90 m to 42.73 m -- 3.83 m of 24.98 g/t Au and 17. 65 g/t Ag

Sample From To Length Gold Silver
No. (m) (m) (m) (g/t) (g/t)
172086 38.90 39.30 0.40 8.21 34.7
172087 39.30 41.30 2.00 39.30 21.0
172088 41.30 42.23 0.93 9.50 6.1
172089 42.23 42.73 0.50 9.92 12.1
Zone 2:          
Sample From To Length Gold Silver
No. (m) (m) (m) (g/t) (g/t)
172155 115.00 116.00 1.00 3.73 3.6

Drill hole SA10-09 was drilled from same location as SA10-08, reaching a depth of 284.38 metres. It intersected the San Albino Zone and a second, mineralized vein which the Company believes to be Zone 2, initially located by drill hole SA10-06.

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

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.goldenreign.com