Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

May 24, 2012 14:00 ET

Golden Reign Intersects San Albino Mineralization in Trenching

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is very pleased to report results from an extensive trenching program at the San Albino Mine area of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

Near-surface gold mineralization exposed by on-going trenching and drilling indicates the strong potential for a high-grade open-pittable resource at the San Albino Mine area. Underground resources are currently being evaluated by the 2011/2012 definition drill program.

Based on drill intercepts the Company projected the surface exposure of the San Albino mineralized zone. As a result, trenching along the eastern slope has confirmed and extended the mineralized zone for an additional 75 metres. This is the first time that the eastern slope of the San Albino hill has been successfully tested for gold mineralization. Trenching is on-going.

The western slope of San Albino hill, initially worked by the Spanish in the late 1700's, hosts the historic San Albino Mine which was developed in the 1920's. Historical estimates suggest that 5,000 tonnes of material averaging 0.58 ounces per tonne remains to be mined from the western slope. (Note: This information is historical and therefore not NI 43-101 compliant. It should not be relied upon.)

Highlights from trenching of the eastern slope include:

SA-01-2012 6.0 metres of 16.36 g/t gold
and 3.0 metres of 7.34 g/t gold
and 1.0 metre of 2.27 g/t gold
SA-05-2012 10.0 metres of 48.44 g/t gold
and 2.0 metres of 1.82 g/t gold
SA-06-2012 4.0 metres of 17.49 g/t gold
and 2.0 metres of 4.54 g/t gold
SA-01-2011 7.0 metres of 8.80 g/t gold
including 1.0 metre of 12.06 g/t gold
and 3.0 metres of 6.15 g/t gold
SA-04-2011 2.0 metres of 1.88 g/t gold
SA-01-2010 2.0 metres of 3.10 g/t gold and 2.5 g/t silver
SA-02-2010 2.0 metres of 1.77 g/t gold and 2.0 g/t silver
SA-04-2010 1.0 metre of 10.79 g/t gold and 9.1 g/t silver
SA-05-2010 1.0 metre of 17.89 g/t gold and 43.0 g/t silver
1.0 metre of 2.27 g/t gold and 2.7 g/t silver

These results correlate strongly with previously reported near-surface drill intercepts of the San Albino mineralization, as presented below:

SA 11-12 49.00 56.00 7.00 8.40 14.8
SA 12-49 58.00 64.50 6.50 13.45 16.6
SA 12-48 64.00 70.00 6.00 9.07 14.3
SA 12-46 69.00 74.50 5.50 20.70 16.6
SA 10-01 29.00 33.00 4.00 7.38 144.4
SA 10-09 38.90 43.73 3.80 24.98 17.7
SA 11-24 59.00 62.50 3.50 13.20 21.1
SA 10-06 48.20 51.30 3.10 22.40 23.1
SA 10-03 45.12 47.25 2.10 10.75 17.5
SA 10-02 54.00 56.00 2.00 29.32 17.2

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 and SEDAR

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)