Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

February 01, 2011 09:30 ET

Golden Reign Resources Ltd.: Minas Perico Returns 1.1 Metres of 52.43 g/t Gold in Schist

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to announce the final results from its 2010 regional sampling program conducted in the northern block of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

The Murra District is host to several newly discovered gold prospects bearing significant precious metal mineralization. Located in close proximity to Mina Estrella, which returned very high-grade gold samples, the new targets merit further investigation and suggest that this district has the potential to host significant resources in possible open-pit targets.

To view accompanying map, click on the following link:

Highlights from the regional and underground sampling program are as follows:

  • Minas Perico, Tunnel # 1 – 1.1 metre channel sample returned 52.43 g/t Au
  • Danilo #2 Vein – 4.5 metre continuous channel sample returned 19.73 g/t Au
  • Santos Garcia #2 Vein – 1.0 metre chip channel sample returned 13.12 g/t Au
  • Mina Juan (collapsed tunnel) grab sample from ore dump returned 54.34 g/t Au
  • Minas America (collapsed tunnel) grab sample from ore dump returned 225.3 g/t Ag

Minas Perico

Minas Perico consists of several old artisanal underground workings, many of which are collapsed. Tunnel #1, approximately 10 metres in length, was abandoned by artisanal workers prior to reaching the targeted gold bearing quartz vein.

The highest gold values received to date from schist were received from sampling Tunnel #1. Vertical samples were collected from the entire length of Tunnel #1, which is partially collapsed. All samples returned elevated gold values. Samples taken at the face (end) of the tunnel in the host schist rock containing quartz veinlets up to 5 cm wide returned significant gold mineralization, including 52.43 g/t gold over 1.1 metres. Schist rock contains gold mineralization only when located within a few metres of a mineralized vein. Sampling suggests that the adit was stopped within five metres of a mineralized quartz vein.

Prospect Name Sample # Type of working Type of Sample Length of Sample (m) Rock type Au (g/t) Ag (g/t)
Minas Perico Tunnel #1 173353 Tunnel Chip channel 0.5 Schists-phyllite-Qtz veinlets 6.52 1.4
Minas Perico Tunnel #1 173355 Tunnel Chip channel 1.0 Schists-phyllite-Qtz veinlets 8.86 2.2
Minas Perico Tunnel #1 173356 Tunnel Chip channel 1.1 Schists-phyllite-Qtz veinlets 52.43 12.2

Danilo Vein #2

The Danilo prospect is a 4.5 metre wide quartz vein, situated near Mina Estrella. The prospect appears to be part of a system of parallel structures related to Mina Estrella. The following chip sample was collected over the entire witdth of the vein.

Prospect Name Sample # Type of working Type of Sample Length of Sample (m) Rock type Au (g/t) Ag (g/t)
Danilo Vein #2 173320 Outcrop Chip sample 4.5 Quartz vein 19.73 7.60

Santos Garcia Vein #2

The Santos Garcia Vein #2 is a 5.7 metre wide quartz vein, averaging 3.69 g/t gold. The vein contains scorodite and intense iron and manganese oxides. The entire width of the vein was sampled. Assay results from the vein are presented below:

Prospect Name Sample # Type of working Type of Sample Length of Sample (m) Rock type Au (g/t) Ag (g/t)
Santos Garcia Vein #2 173253 Outcrop Chip channel 1.0 Quartz vein 2.35 0.9
Santos Garcia Vein #2 173254 Outcrop Chip channel 1.2 Quartz vein 0.09 <0.1
Santos Garcia Vein #2 173255 Outcrop Chip channel 1.0 Quartz vein 13.12 0.7
Santos Garcia Vein #2 173256 Outcrop Chip channel 1.5 Quartz vein 2.17 1.6
Santos Garcia Vein #2 173257 Outcrop Chip channel 1.0 Quartz vein 2.18 0.5

Minas Juan & Mina America

The Minas Juan area hosts three collapsed tunnels. The Company sampled old mine dumps from two of the three tunnels, which returned excellent results. The mine dumps are estimated to be 8 metres thick, containing quartz veinlets presenting as boxworks within schists. The quartz veinlets are often chaledonic with quartz-adularia stringers containing sulphide mineralization and visible gold.

Mina America is situated within an area of limited, historical high-grade sliver production. The tunnels are collapsed; however, the Company collected a multi-ounce silver sample from the old mine dump. This area requires further exploration.

Prospect Name Sample # Type of working Type of Sample Rock type Au (g/t) Ag (g/t)
Minas Juan 173542 Old mine dump Grab Quartz 22.10 4.7
Minas Juan 173543 Old mine dump Grab Quartz 54.34 12.0
Minas Juan 173544 Old mine dump Grab Quartz 20.72 5.9
Minas Juan 173597 Old mine dump Grab Quartz 16.01 0.4
Mina America – Tunnel 173197 Old mine dump Grab Quartz 1.26 225.3

Other Areas of Artisanal Mining

Several other areas of indigenous mining were examined and sampled during the regional program. The work on these prospects is preliminary in nature. Further mapping and sampling is required. Assay results from prospect samples that reported significant gold values 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 Bonanza 173232 Old mine dump Grab   Quartz vein 2.18 20.9
Mina San Gregorio 173236 Tunnel Chip channel 1.0 Quartz vein 5.00 1.7
Pit Principal (Mina Garvi) 173306 Old mine dump Grab   Quartz vein 7.39 22.8
Minas El Casstillo (Minas El Verdum) 173316 Old mine dump Grab   Quartz vein 6.74 0.5
Mina Lino Flores 173321 Cuts Chip channel 0.5 Quartz vein 12.37 2.6
Mina Lino Flores 173322 Cuts Chip channel 1.0 Quartz vein 4.66 0.7
Minas Perico 173359 Old mine dump Grab   Quartz vein 1.85 0.7
Minas Perico-Tunnel#2 173390 Tunnel Chip channel 0.9 Quartz vein 3.16 0.8
Minas Matazanos-Tunnel#1 173471 Tunnel Chip channel 1.1 Quartz vein 4.82 0.2
Minas Matazanos-Tunnel#1 173477 Tunnel Chip channel 0.7 Laterite 4.28 0.5
Tunnel #1 (road el escandalo) 173493 Old mine dump Grab   Quartz vein 2.07 12.5
Leopoldo Vein#2 173549 Outcrop Chip channel 1.0 Quartz vein 8.35 3.9

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 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 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)