Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

September 08, 2010 16:52 ET

Golden Reign Resources Ltd.: High-Grade Results From Northern Murra District at Mina Estrella, as Drilling Continues at San Albino in South

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to report assay results from Mina Estrella, discovered during regional geological mapping of the northern block of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

The San Albino-Murra Property hosts a north-east trending structural corridor comprised of mineralized quartz veins and breccia zones. Approximately 3 kilometres wide by 15 kilometres long, this corridor encompasses numerous Spanish and artisanal workings that targeted near-surface high-grade quartz veins, which were subject to only limited production.

The Company's Phase II exploration program primarily focused on the San Albino/Arras vein systems at the historic San Albino Mine area in the southern block of the Property, where the Company is currently conducting a diamond drilling program. 

However, a concurrent, intensive geological mapping, prospecting and sampling program was conducted in the northern block of the Property, referred to as the Murra District. In addition to testing documented historical workings, the Company also explored for previously unreported Spanish and artisanal workings which resulted in the discovery of Mina Estrella. 

Mina Estrella, an old artisanal working located at the north-east end of the corridor, returned high gold values upon assay. The vein exposed in the access adit measures five metres in width and has been sampled across three metres. One metre channel sampling across the accessible width of the vein returned an average of 62.34 g/t of gold over three metres, including:

- 1 metre of 54.14 g/t Au,
- 1 metre of 23.41 g/t Au and
- 1 metre of 109.47 g/t Au

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

Type of
Type of
Mina Estrella 173771 tunnel chip channel 1.0 quartz 1.16
Mina Estrella 173772 tunnel chip channel 1.0 quartz 54.14
Mina Estrella 173773 tunnel chip channel 1.0 quartz 23.41
Mina Estrella 173774 tunnel chip channel 1.0 quartz 3.58
Mina Estrella 173775 tunnel chip channel 1.0 quartz 3.91
Mina Estrella 173776 tunnel chip channel 1.0 quartz 7.95
Mina Estrella 173777 tunnel chip channel 1.0 schist, phyllite, quartz 109.47

The style and chemistry of mineralization within the Murra District appears to be similar to that of the San Albino District to the south. Mineralization occurs in quartz veins which range from one to several metres in width. The presence of galena and arsenopyrite in the quartz veins indicate increased gold values. 

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 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.

To view the map accompanying this release please click on the following link:

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
    Director & CFO
    (604) 685-4655 or Toll Free: 1-888-685-4655
    (604) 685-4675 (FAX)