Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

November 21, 2011 09:30 ET

Golden Reign Resources Ltd.: Complete First Fence Drill Results From San Albino Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to present the complete first fence drill results from the ongoing 2011 definition drilling program at the San Albino Mine area of its San Albino-Murra Property (the "Property"), Nicaragua.

The 2011 drill program is designed to test the entire area between the parallel San Albino and Arras prospects which represents approximately 2 square kilometres within the highly prospective 24 square kilometre Southern (San Albino) District of the Property. Initially, the planned 2011 diamond drill program was to consist of 40 to 60 holes of definition drilling, totaling between 6,000 to 10,000 metres across a series of five fences of drill holes. After several very encouraging drill holes, the Company redesigned and expanded the program, which now consists of roughly 70 drill holes totaling approximately 16,000 metres, to be drilled in six fences of drill holes located approximately 100 metres apart with holes spaced approximately 50 metres apart on section.

In all, twenty-nine drill holes were cored in the first fence at the San Albino Mine area during 2010 and 2011:

  • Multiple mineralized zones were encountered: San Albino, Arras, Arras II, El Jobo and Naranjo
  • Drilling to date has extended the strike length of the San Albino zone from 70 to 575 metres
  • Drilling has demonstrated the down dip continuity of the Arras zone mineralization, which underlies the San Albino zone
  • All zones remain open in both directions and at depth.

(see attached drill location map and cross section, available at the following link: http://media3.marketwire.com/docs/grr1121.pdf)

Drilling highlights from the last nine holes of the first fence include:

San Albino zone:

  • SA 11-23 3.5 metres of 11.65 g/t gold and 16.5 g/t silver
  • SA 11-24 3.5 metres of 13.20 g/t gold and 21.1 g/t silver
  • SA 11-25 2.0 metres of 14.75 g/t gold and 25.1 g/t silver

Arras zone:

  • SA 11-22 1.5 metres of 11.52 g/t gold and 25.2 g/t silver
  • SA 11-23 1.8 metres of 22.75 g/t gold and 37.6 g/t silver
    • including 0.94 metres of 43.49 g/t gold and 69.7 g/t silver
  • SA 11-24 8.0 metres of 2.26 g/t gold and 11.9 g/t silver
    • including 1.0 metre of 12.05 g/t gold and 32.1 g/t silver
  • SA 11-25 2.0 metres of 5.87 g/t gold and 9.0 g/t silver

El Jobo zone:

  • SA 11-29 2.0 metres of 4.06 g/t gold and 7.3 g/t silver

Naranjo zone:

  • SA 11-27 2.0 metres of 15.08 g/t gold and 15.3 g/t silver
  • SA 11-29 2.5 metres of 21.60 g/t gold and 17.4 g/t silver
    • including 0.5 metres of 107.82 g/t gold and 84.6 g/t silver

San Albino Zone

The San Albino zone is near-surface, at a vertical depth of approximately 40 to 130 metres, outcropping at the top of San Albino Mine hill. Only the southwest extension of the zone has been tested to date. The northeast extension will be drill tested in early 2012. While drilling is important to confirm the presence of mineralized zones, bulk testing provides for a much more accurate reporting of grades within such high-grade vein structures. Golden Reign plans to continue with the reopening of the 400 level of San Albino Mine in early 2012 in order to collect a bulk sample for metallurgical testing.

The Company's initial drill program in 2010 confirmed historical underground sampling in the San Albino Mine. The San Albino vein is the source of gold mineralization within the historic San Albino Mine, which was active for a limited period of time in the early 1920's reportedly producing 10 tons per day of 31 g/t gold. Drill holes SA 10-01 through SA 10-09 correlate strongly with historical underground sampling of the 200, 300 and 400 levels of the San Albino Mine. Systematic sampling in 1919 and 1935 recorded a grade of 24 g/t gold (0.70 ounces gold per ton) over a strike length of 70 metres and an average vein width of 1.33 metres on the 200 and 300 levels and a grade of 30.7 g/t gold (0.89 ounces gold per ton) over a strike length of approximately 70 metres and an average vein width of 1.25 metres on the 400 level.

The initial drill program also extended the strike length of the San Albino mineralized zone laterally to the southwest by 130 metres, from 70 to 200 metres. In 2011, the strike length of the San Albino zone was extended by an additional 375 metres to 575 metres. Disturbed by at least two cross-faults, the zone appears to have been shifted several times and only returned anomalous values in some faulted drill intercepts; however, these geochemical traces do indicate the continuity of the mineralized zone.

San Albino drilling to date is summarized in the following table:

Drill Hole Year From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
SA 10-01 2010 29.00 33.00 4.00 7.38 58.9
SA 10-02 2010 54.00 56.00 2.00 29.32 17.2
SA 10-03 2010 45.12 47.25 2.13 10.75 17.5
SA 10-04 2010 46.40 49.00 2.60 2.36 3.4
SA 10-05 2010 44.00 45.00 1.00 2.30 2.4
SA 10-06 2010 48.20 51.30 3.10 22.40 23.1
SA 10-07 2010 25.80 28.00 2.20 4.56 7.8
SA 10-08 2010 39.62 41.48 1.86 6.03 7.8
SA 10-09 2010 38.90 42.73 3.83 24.98 17.6
SA 11-10 2011 52.60 54.00 1.40 0.69 2.7
SA 11-12 2011 49.00 56.00 7.00 8.40 14.8
SA 11-13 2011 49.70 51.00 1.30 10.14 24.6
SA 11-14 2011 41.50 42.50 1.00 0.12 0.3
SA 11-15 2011 33.50 34.50 1.00 0.26 2.2
SA 11-16 2011 32.75 34.50 1.75 0.21 5.5
SA 11-17 2011 29.50 30.00 0.50 3.25 10.3
SA 11-19 2011 44.50 46.50 2.00 0.05 0.6
SA 11-20 2011 45.50 46.50 1.00 0.25 8.9
SA 11-22 2011 44.00 45.50 1.50 0.21 0.3
SA 11-23 2011 84.50 88.00 3.50 11.65 16.5
SA 11-24 2011 59.00 62.50 3.50 13.20 21.1
SA 11-25 2011 107.00 109.00 2.00 14.75 25.1
SA 11-25 2011 116.50 118.00 1.50 2.72 9.5
SA 11-27 2011 105.50 109.00 3.50 2.77 8.2
SA 11-28 2011 85.50 87.00 1.50 0.29 2.1
SA 11-28 2011 95.50 96.00 0.50 4.19 16.1
SA 11-28 2011 115.50 117.50 2.00 0.93 2.3
SA 11-28 2011 119.00 120.00 1.00 1.30 6.1
SA 11-29 2011 107.50 112.00 4.50 0.76 14.0
SA 11-29 2011 118.50 120.50 2.00 4.95 8.43
SA 11-29 2011 126.50 128.50 2.00 4.43 7.1

Arras Zone

The continuity in strike and width of the Arras mineralized zone is significant. Drilling has extended the strike length of the Arras zone, which underlies the El Jobo, San Albino and Naranjo zones, laterally to the southwest by 450 metres and down dip by 600 metres.

First intersected in 2010 by drill hole SA 10-06, which returned 4.0 metres grading 13.67 g/t gold and 31.4 g/t silver, an additional twelve drill holes completed in the first fence of holes have now intersected the Arras mineralized zone. Although the Arras zone crops out at the location of the Arras mine site, it was intersected by drilling at a vertical depth ranging from 110.0 metres to 260.0 metres. As drill hole locations approach the Arras showing, the vertical depth will become far less.

Drill holes SA 11-18 and SA 11-20, located approximately 50 metres apart, intersected 12.0 metres and 7.0 metres, respectively, of high-grade mineralization. Over the next 100 metres along strike, the width of the zone narrows; however, the grades remain high, as evidenced by drill holes SA 11-22 and SA 11-23. In the final 100 metres of strike length, the Arras zone widens once again in holes SA 11-24 and SA 11-26.

The surface exposure of the Arras mineralized zone is located roughly 400 metres to the east of the San Albino Mine and the first fence of drill holes. Continuous channel sampling of the Arras surface showing in late 2009 returned (see news release #09-05 dated December 22, 2009):

  • 0.8 metres of 18.76 g/t gold and 49.3 g/t silver;
  • 4.0 metres of 12.36 g/t gold and 84.2 g/t silver;
  • 1.0 metre of 14.11 g/t gold and 27.5 g/t silver;
  • 2.0 metres of 32.45 g/t gold and 46.3 g/t silver;
  • 1.0 metre of 12.05 g/t gold and 39.6 g/t silver; and
  • 3.0 metres of 5.74 g/t gold and 20.9 g/t silver.

There appears to be a high degree of correlation between results from drilling and those from the channel sampling program. For example, drill hole SA 11-24, which returned 8.0 metres averaging 2.26 g/t gold and 11.89 g/t silver, included 1.0 metre of 12.05 g/t gold and 32.15 g/t silver, which is nearly identical in grade to the 1.0 metre grading 12.05 g/t gold and 39.6 g/t silver returned at surface.

Arras zone results are summarized in the following table:

Drill Hole Year From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
SA 10-06 2010 247.50 251.50 4.00 13.67 31.4
SA 11-10 2011 268.40 271.50 3.10 0.74 2.7
SA 11-10 2011 277.00 277.50 0.50 0.37 1.8
SA 11-16 2011 256.00 257.50 1.50 4.23 11.9
SA 11-17 2011 228.00 229.00 1.00 2.58 10.0
SA 11-18 2011 247.50 259.50 12.00 16.37 23.4
SA 11-19 2011 233.00 235.00 2.00 3.11 22.1
SA 11-20 2011 251.50 258.50 7.00 12.28 27.9
SA 11-22 2011 244.00 246.50 1.50 11.52 25.2
SA 11-23 2011 219.70 220.64 0.94 43.49 69.7
SA 11-23 2011 220.64 221.50 0.86 0.08 2.60
SA 11-24 2011 239.50 247.50 8.00 2.26 11.9
SA 11-25 2011 215.50 217.50 2.00 5.87 9.0
SA 11-26 2011 262.50 268.00 5.50 0.17 2.5
SA 11-27 2011 235.00 236.50 1.50 0.90 0.1
SA 11-27 2011 267.00 268.50 1.50 2.40 1.6

Arras II Zone

The Arras II zone was intersected in three separate drill holes and is interpreted as a branch of the main Arras zone.

Drill Hole Year From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
SA 10-06 2010 268.00 269.00 1.00 9.22 5.2
SA 11-10 2011 313.50 316.00 2.50 1.46 3.6
SA 11-25 2011 220.00 221.00 1.00 0.22 0.6

El Jobo Zone

The surface exposure of the El Jobo zone is located near the historic San Albino Mine. However, the El Jobo mine adit is located approximately 700 metres southwest and down dip from the surface exposure. Channel sampling near the mouth of the El Jobo adit returned 1.4 metres grading 16.06 g/t gold and 17.5 g/t silver.

First intersected in drill hole SA 11-25, the El Jobo mineralized zone appears to be fairly consistent in width with grades improving at depth. The El Jobo zone is very near surface, at a depth of approximately 20 metres.

Drill intercepts are summarized below:

Drill Hole Year From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
SA 11-25 2011 25.00 27.50 2.50 0.58 2.2
SA 11-27 2011 56.50 59.50 3.00 0.59 3.0
SA 11-28 2011 24.50 27.50 3.00 0.30 0.5
SA 11-29 2011 27.50 29.50 2.00 4.06 7.3

Naranjo Zone

The Naranjo zone, situated almost equidistant between the San Albino and Arras zones, was intersected by eleven drill holes. The width of the zone is quite consistent, averaging 1.1 metres. The grades within the El Naranjo zone vary greatly, with the best intercept returning 0.5 metres of 107.82 g/t gold and 84.6 g/t silver. This interval is very similar to a 1.3 metre channel sample taken from the El Naranjo adit entrance which returned 108.63 g/t gold and 92.0 g/t silver. The adit is approximately 30 metres long. Historical mining activity appears to have been very limited.

Drill intercepts of this zone are summarized below:

Drill Hole Year From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
SA 10-04 2010 134.10 135.25 1.15 2.40 4.1
SA 10-06 2010 128.93 129.93 1.00 17.05 11.7
SA 10-09 2010 115.00 116.00 1.00 3.73 3.6
SA 11-10 2011 140.80 141.80 1.00 1.24 7.0
SA 11-12 2011 129.00 130.00 1.00 1.68 0.7
SA 11-13 2011 139.40 141.00 1.64 2.11 3.5
SA 11-14 2011 113.50 114.50 1.00 1.64 1.7
SA 11-15 2011 90.00 91.00 1.00 0.20 2.4
SA 11-19 2011 88.50 89.50 1.00 0.12 0.5
SA 11-27 2011 138.50 140.50 2.00 15.08 15.3
SA 11-29 2011 175.00 176.00 1.00 0.03 0.6
SA 11-29 2011 176.00 176.50 0.50 107.82 84.6
SA 11-29 2011 176.50 177.50 1.00 0.06 0.6

Drilling also continues at Las Conchitas, approximately 1 kilometre south of San Albino/Arras. To date, 1,024 metres have been drilled in four holes. Assays are pending.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices, involving insertion of appropriate blanks and duplicates. All drill holes are sampled on at most a 1.0 metre interval within the mineralized zones, with drill core split on site and one half then being transported to the Inspectorate America Corporation ("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), preparation facility in Managua. The samples are then transferred to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. Duplicate samples have also been sent to Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, Canada, for comparative analysis.

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,

Ms. 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.

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.
    Ms. Kim Evans, CGA
    President & CEO
    (604) 685-4655 or Toll Free: 1-888-685-4655
    (604) 685-4675 (FAX)
    www.goldenreign.com