Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

October 20, 2010 12:19 ET

Golden Reign Resources Ltd.: San Albino Diamond Drill Program Yields 2 Metres of 29.32 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is very pleased to announce assay results for the first four of fourteen drill holes from the 2010 diamond drill program at its San Albino-Murra Gold Property (the "Property"), Nicaragua.

The 2010 drill program was designed to test grade and continuation of mineralization of at least two highly mineralized zones, San Albino and Arras/San Lorenzo, at depth and along strike. The program, comprising 1,514.75 metres, commenced with a fence of nine diamond drill holes at the San Albino zone. The remaining five holes were cored at Arras/San Lorenzo.

The first four diamond drill holes all intersected the San Albino vein structure. In addition, drill hole SA10-04 has identified a new, parallel mineralized zone, approximately 86 metres below the San Albino zone.

Drilling highlights, over true width intervals, include:

  • SA10-01 – 4.0 metres of 7.38 g/t Au and 144.35 g/t Ag
  • SA10-02 – 2.0 metres of 29.32 g/t Au and 17.15 g/t Ag
    •  including 1.0 metre of 54.64 g/t Au
  • SA10-03 – 2.13 metres of 10.75 g/t Au and 17.54 g/t Ag
    •  including 0.61 metre of 20.42 g/t Au

The San Albino zone, striking northeast-southwest at 60°, consists of quartz vein mineralization within graphitic schists. The mineralized zone contains significant amounts of galena, sphalerite and arsenopyrite.

Drilling at San Albino was intended to define the southern extension of the zone, locate the 400 level tunnel of the historic San Albino Mine and extend the zone to depth. The first four drill holes have extended the mineralized zone along strike from 70 metres to 200 metres. The mineralized zone still remains open in both directions along strike and at depth.

Results from the first four diamond drill holes at San Albino correlate strongly with historical sampling (1919 and 1935) of the 200, 300 and 400 levels of the San Albino Mine which returned excellent grades of gold over significant widths.

The 200 and 300 level sampling recorded a grade of 0.70 ounces gold per ton (24 g/t gold) over a strike length of 230.0 feet (70.0 metres) and an average vein width of 4.3 feet (1.33 metres). Sampling was undertaken systematically across the vein every five feet (1.5 metres).

Sampling of the 400 level returned a grade of 0.89 ounces gold per ton (30.7 g/t gold) over a strike length of approximately 230 feet (70 metres) and an average vein width of 4.1 feet (1.25 metres). Sampling was systematic, across the vein every 10 feet (3.05 metres). The highest assay returned 8.3 ounces gold per ton (284.57 g/t gold) and 6.2 ounces silver per ton (212.57 g/t silver) over 6 feet (1.83 metres). The 400 level sampling was down dip of the 300 level sampling.

The 2010 drill targets are situated in the southern, San Albino District, which covers approximately 24 square kilometres of the 87 square kilometre property. Together the San Albino and Arras/San Lorenzo zones comprise the San Albino Mine area, which covers 2 square kilometres, is the most advanced prospect and the Company's primary target.

Detailed results from the first four drill holes are presented below:

SA 10-01 – 53.3 metres

Drill hole SA10-01 was designed to intersect the 400 level in order to confirm the location of the drift and determine the elevation of the adit. The adit was intersected at a depth of 29.0 metres, where most of the vein appears to be mined out; however, significant mineralized intervals were still intersected, including:

4.0 metres averaging 7.38 g/t gold; and
4.0 metres averaging 144.35 g/t silver

  From To Length Gold Silver
Sample No (m) (m) (m) (g/t) (g/t)
171437 27.00 29.00 2.0 0.06 177.2
171438 29.00 31.00 2.0 7.72 111.5
171439 31.00 32.00 1.0 4.91 7.7
171440 32.00 33.00 1.0 9.18 5.0

SA 10-02 – 109.71 metres

2.0 metres of 29.32 g/t gold

  From To Length Gold Silver
Sample No (m) (m) (m) (g/t) (g/t)
171481 54.00 55.00 1.0 4.00 9.6
171482 55.00 56.00 1.0 54.64 24.7
171484 56.00 57.00 1.0 0.97 1.6

SA 10-03 – 58.84 metres

2.13 metres of 10.75 g/t gold

  From To Length Gold Silver
Sample No (m) (m) (m) (g/t) (g/t)
171554 45.12 45.73 0.61 20.42 16.9
171555 45.73 47.25 1.52 6.87 17.8

SA 10-04 – 146.91 metres

Drill hole SA10-04 was drilled along strike, approximately 150 metres south of drill hole SA10-01, and extended to roughly 150 metres in length with the intent of both confirming the continuity of mineralization near surface and along strike and locating parallel mineralized veins below the San Albino vein structure. A second vein structure, or zone, with evaluated gold values was intersected 85.85 metres below the San Albino vein. Two intersections are presented below:

1.85 metres of 3.33 g/t gold; and
1.15 metres of 2.40 g/t gold

  From To Length Gold Silver
Sample No (m) (m) (m) (g/t) (g/t)
171601 46.40 47.60 1.20 0.86 2.2
171602 47.60 48.25 0.65 7.65 8.3
171603 48.25 49.00 0.75 0.21 1.0
171686 134.10 135.25 1.15 2.40 4.1

All reported drilled intersections are true widths.

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, 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. 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.

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)