Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

January 25, 2011 13:57 ET

Golden Reign Resources Ltd.: Additional High-Grade Gold Prospects Identified in Murra District

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to announce additional results from its 2010 regional sampling program conducted in the northern block of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

The Company has discovered three new zones bearing significant gold mineralization located in close proximity to Mina Estrella. Mina Estrella returned 10.5 metres of 24.75 g/t gold, including 1.1 metres of 112.09 g/t gold and 0.7 metres of 176.18 g/t gold (see released dated December 22, 2010). 

Underground sampling of schists with quartz veinlets has returned strong gold values, confirming that gold mineralization is not constrained to quartz veins. Highlights from underground sampling are as follows:

  • Mina Estrella, adit #5 – 1.8 metre channel sample returned 18.29 g/t Au
  • Minas El Soccoro, adit # 4 – 1.5 metre chip channel sample returned 10.16 g/t Au
  • Minas El Soccoro, adit # 4 – 1.2 metre chip channel sample returned 8.44 g/t Au
  • Minas Gresin – 1.7 metre chip channel sample returned 6.32 g/t Au
  • Minas Gresin – 1.6 metre chip channel sample returned 6.39 g/t Au

At Mina Estrella adit #5, historical artisanal workings did not reach the targeted quartz vein material. However, high grade gold values received from sampling of the host rock indicate that the quartz vein is situated nearby, likely within approximately within a few metres of the adit. 

At Minas El Soccoro and Mina Gresin, the majority of the samples carried gold mineralization. Both prospects represent areas of old artisanal underground workings with extensive tunneling, most of which is flooded. Both have large underground galleries constructed within chlorite schists containing numerous quartz veinlets. Based upon proximity, the two prospects may be separate approaches to the same deposit. Further work is planned.

Mina Estrella and the surrounding area are characterized by wide, steeply dipping (approximately 80°) quartz veins. Although, geologically, the structure is very similar to that of the San Albino-Arras area in the southern San Albino District, the quartz veins in the northern, Murra District tend to be more competent and considerably wider.

The northern, Murra District has the potential to host significant resources. There also remains very good potential for the discovery of further mineralized zones in this underexplored district.

Mina Estrella Adit #5

Mina Estrella adit #5, located 40 metres east of the main Mina Estrella adit, is an old artisanal working initially excavated in order to reach the Estrella vein. However, the tunnel is collapsed after 15 metres and the quartz vein was never reached. Samples were collected along the walls of adit #5, from intensely weathered host rock (saprolite) containing quartz veinlets.

Prospect Name Sample # Type of
working
Type of
Sample
Length of
Sample
(m)
Rock type Au
(g/t)
Ag
(g/t)
Mina Estrella
  – Adit#5
173522 Tunnel Chip
channel
1.8 Saprolite with
quartz veinlets
18.29 2.80
Mina Estrella
  – Adit#5
173511 Tunnel Chip
channel
1.7 Saprolite with
quartz veinlets
1.25 <0.1

Mina Socorro

Mina Soccoro is a group of old artisanal underground workings and the largest system of tunneling located to date. The tunnels, striking 360º and connecting large underground areas known as galleries, were constructed within chlorite schists containing numerous quartz veinlets. They are accessible for 25 metres. The remainder of the underground workings is flooded. Samples were collected from the tunnel walls. Sample results, shown below, and the volume of historical work justify the draining of the tunnels and completion of additional underground sampling and mapping.

Prospect Name Sample # Type of
working
Type of
Sample
Length of
Sample
(m)
Rock type Au
(g/t)
Ag
(g/t)
Mina Socorro
 Tunnel#4 gallery
173573 Tunnel Chip
channel
1.5 Schists and
quartz veinlets
10.16 1.7
Mina Socorro
 Tunnel#4 gallery
173576 Tunnel Chip
channel
1.5 Schists and
quartz veinlets
2.16 0.5
Mina Socorro
 Tunnel#4 gallery
173577 Tunnel Chip
channel
1.8 Schists and
quartz veinlets
3.23 0.8
Mina Socorro
 Tunnel#4 gallery
173579 Tunnel Chip
channel
2.0 Schists and
quartz veinlets
1.92 0.3
Mina Socorro
 Tunnel#4 gallery
173580 Tunnel Chip
channel
2.0 Schists and
quartz veinlets
3.56 0.8
Mina Socorro
 Tunnel#4 gallery
173581 Tunnel Chip
channel
1.7 Schists and
quartz veinlets
2.58 0.7
Mina Socorro
 Tunnel#4 gallery
173582 Tunnel Chip
channel
2.1 Schists and
quartz veinlets
2.31 0.5
Mina Socorro
 Tunnel#4 gallery
173583 Tunnel Chip
channel
1.2 Schists and
quartz veinlets
8.44 1.0
Mina Socorro
 Tunnel#4 gallery
173584 Tunnel Chip
channel
1.8 Schists and
quartz veinlets
0.62 0.4

Minas Gresin

Minas Gresin is an area of advanced underground workings that is host to numerous tunnels. Similar to Mina Socorro, the tunnels strike 360º, were constructed within chlorite schists containing numerous quartz veinlets and connect large mine galleries. The tunnels are accessible for 25 metres. The remaining underground workings are flooded. This prospect merits further testing and mapping. Samples collected from the tunnel walls are presented below:

Prospect Name Sample # Type of working Type of Sample Length of Sample (m) Rock type Au
(g/t)
Ag
(g/t)
Mina Gresin
 Tunnel#1 gallery
173367 Tunnel Chip
channel
1.0 Quartz vein 1.08 0.3
Mina Gresin
 Tunnel#1 gallery
173368 Tunnel Chip
channel
1.0 Quartz vein 2.71 3.1
Mina Gresin
 Tunnel#1 gallery
173371 Tunnel Chip
channel
1.0 Schists-phyllite-
Qtz veinlets
1.96 0.5
Mina Gresin
  Tunnel#1 gallery
173373 Tunnel Chip
channel
1.0 Schists-phyllite-
Qtz veinlets
1.43 0.2
Mina Gresin
  Tunnel#1 gallery
173374 Tunnel Chip
channel
1.0 Schists-phyllite-
Qtz veinlets
4.79 0.8
Mina Gresin
  Tunnel#1 gallery
173375 Tunnel Chip
channel
1.0 Quartz vein 0.71 0.1
Mina Gresin
  Tunnel#1 gallery
173376 Tunnel Chip
channel
1.0 Quartz vein 1.60 0.5
Mina Gresin
  Tunnel#1 gallery
173377 Tunnel Chip
channel
1.7 Schists-phyllite-
Qtz veinlets
1.65 0.4
Mina Gresin
 Tunnel#1 gallery
173378 Tunnel Chip
channel
0.9 Schists-phyllite-
Qtz veinlets
0.89 0.5
Mina Gresin
 Tunnel#1 gallery
173379 Tunnel Chip
channel
1.7 Schists-phyllite-
Qtz veinlets
6.32 1.3
Mina Gresin
 Tunnel#1 gallery
173380 Tunnel Chip
channel
1.3 Schists-phyllite-
Qtz veinlets
2.97 0.7
Mina Gresin
 Tunnel#1 gallery
173381 Tunnel Chip
channel
1.1 Schists-phyllite-
Qtz veinlets
1.74 0.5
Mina Gresin
 Tunnel#1 gallery
173382 Tunnel Chip
channel
1.5 Schists-phyllite-
Qtz veinlets
6.31 0.8
Mina Gresin
 Tunnel#1 gallery
173383 Tunnel Chip
channel
1.7 Schists-phyllite-
Qtz veinlets
1.72 0.6
Mina Gresin
 Tunnel#1 gallery
173384 Tunnel Chip
channel
1.0 Schists-phyllite-
Qtz veinlets
2.13 0.3
Mina Gresin
 Tunnel#1 gallery
173385 Tunnel Chip
channel
1.6 Schists-phyllite-
Qtz veinlets
6.39 2.5
Mina Gresin
 Tunnel#1 gallery
173386 Tunnel Chip
channel
1.0 Schists-phyllite-
Qtz veinlets
1.01 0.3
Mina Gresin
 Tunnel#1 gallery
173387 Tunnel Chip
channel
0.8 Schists-phyllite-
Qtz veinlets
4.40 0.3
Mina Gresin
 Tunnel#1 gallery
173388 Tunnel Chip
channel
0.9 Schists-phyllite-
Qtz veinlets
1.24 0.2

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"
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 judgent 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