Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

December 22, 2010 13:06 ET

Golden Reign Resources Ltd.: Additional High Grade Results at Mina Estrella

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to report assay results from additional underground sampling at Mina Estrella, located in the northern (Murra) district of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

A continuous channel sample over the entire width of the Mina Estrella adit returned the following results:

  • 10.5 metres of 24.75 g/t Au

    Including: 1.1 metres of 112.09 g/t Au and
                     0.7 metres of 176.18 g/t Au

Mina Estrella, an old artisanal underground working, was previously sampled, returning an average of 62.34 g/t gold over 3.0 metres (see news release dated September 8, 2010). This included 1.0 metre of 54.14 g/t gold, 1.0 metre of 23.41 g/t gold and 1.0 metre of 109.47 g/t gold. High-grade results received from the first phase exploration program were followed up by a second program comprised of continuous channel sampling over the entire width of the mineralized zone.

Within the Mina Estrella adit, the main vein is 5.0 metres wide, averaging 26.47 g/t gold. It is one of three exposed quartz veins that intrude into the chlorite schist host rock. These quartz veins, as well as the other quartz veins mapped within the Murra District are similar in style and chemistry to those at the San Albino Mine in the southern district. Most of the veins consist of drusy, white quartz with manganese and iron oxide. The chlorite schist often contains quartz veinlets, several centimeters wide, which carry significant gold mineralization. Mineralized veins within the Murra District are substantially wider (five metres or more) and steeper dipping (subvertical) than the veins in the southern, San Albino District. 

Mina Estrella, one of many Spanish and artisanal workings recently discovered within the northern district, is situated within a 3 kilometres wide by 15 kilometres long corridor of mineralization that spans the entire property. Prior to the recent mapping program, very little exploration work had been conducted within the northern block of the property. 

The following table shows the results of sampling at Mina Estrella:

Prospect Name Sample # Type of
Working
Type of
Sample
Length of
sample
(m)
Rock
type
Au
g/mt
Ag
ppm
Mina Estrella-Tunnel #1 173273 Tunnel Chip channel 1.0 Qtz 0.64 <0.1
Mina Estrella-Tunnel #1 173274 Tunnel Chip channel 1.0 Schists/Phyllite with qtz veinlets 1.34 0.2
Mina Estrella-Tunnel #1 173275 Tunnel Chip channel 0.7 Qtz 176.18 24.4
Mina Estrella-Tunnel #1 173276 Tunnel Chip channel 0.8 Schists/Phyllite with qtz veinlets 0.77 0.3
Mina Estrella-Tunnel #1 173277 Tunnel Chip channel 1.0 Schists/Phyllite with qtz veinlets 1.38 <0.1
Mina Estrella-Tunnel #1 173278 Tunnel Chip channel 1.0 Schists/Phyllite with qtz veinlets 0.22 <0.1
Mina Estrella-Tunnel #1 173279 Tunnel Chip channel 1.0 Qtz 0.59 0.1
Mina Estrella-Tunnel #1 173280 Tunnel Chip channel 1.1 Qtz 112.09 15.8
Mina Estrella-Tunnel #1 173281 Tunnel Chip channel 1.4 Qtz 3.00 0.2
Mina Estrella-Tunnel #1 173282 Tunnel Chip channel 1.5 Qtz 2.84 <0.1

The assays provided in the table above are a continuous sample across the three quartz veins and intervening schist, as illustrated by the following diagram: http://media3.marketwire.com/docs/1222gpr.jpg

With continued excellent results, Mina Estrella warrants additional work - which will include a trenching program planned to extend the mineralized zone.

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
Director & CFO

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 (see map provided below). 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 responsibilityfor the adequacy or accuracy of this news release.

Contact Information

  • Golden Reign Resources Ltd.
    Kim Evans, CGA
    Director & CFO
    (604) 685-4655 or Toll Free: 1-888-685-4655
    (604) 685-4675 (FAX)
    www.goldenreign.com