Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

May 02, 2011 09:30 ET

Golden Reign Resources Ltd.: Second Gold Zone Discovered in Southern District-Trenching Intersects 16.0 Metres of 9.10 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2011) -Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is very pleased to report the results of the second set of trenches in a new gold mineralized zone approximately one kilometre south of the historic San Albino Mine area in the Southern District of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

During the 2009/2010 regional geological mapping and sampling program, a highly mineralized area covering four square kilometres was outlined. Trenching has confirmed that gold and silver mineralization within the area is controlled by structures very similar to those at the San Albino Mine area and Arras prospect.

Several structurally controlled mineralized zones have been traced at surface over a distance of two kilometres and remain open in at least two directions. Four highly prospective zones have been defined, stretching from the southern-most area of Las Conchitas northeast towards the San Pablo area.

A total of 149 samples were collected from six trenches located approximately 200 metres north of the initial trenches, which returned 12.8 metres of 16.05 g/t gold (see news release dated April 12, 2011). The trenches are approximately 50 metres apart giving a total strike length of 250 metres.

Highlights from the sampling are:

Trench 1:2.0 metres (from 0.0 m to 2.0 m) averaging 4.02 g/t gold, no silver
and1.0 metre (from 13.0 m to 14.0 m) averaging 13.50 g/t gold and 5.2 g/t silver
and1.0 metre (from 18.0 m to 19.0 m) averaging 3.52 g/t gold, minor silver
Trench 2:1.0 metre (from 9.0 m to 10.0 m) averaging 2.47 g/t gold, minor silver
and:8.5 metres (from 21.0 m to 29.5 m) averaging 9.22 g/t gold and 5.2 g/t silver
including:4.5 metres (from 23.0 m to 27.5 m) averaging 15.44 g/t gold and 8.6 g/t silver
Trench 3:6.5 metres (from 9.5 m to 16.0 m) averaging 4.32 g/t gold, minor silver
including:1.0 metre (from 11.0 m to 12.0 m) averaging 13.31 g/t gold and 11.6 g/t silver
Trench 4:16.0 metres (from 1.0 m to 17.0 m) averaging 9.10 g/t gold, 5.1 g/t silver
including9.0 metres (from 2.0 m to 11.0 m) averaging 10.03 g/t gold, minor silver
and3.0 metres (from 13.0 m to 16.0 m) averaging 17.73 g/t gold, and 5.9 g/t silver
Trench 5:3.0 metres (from 9.0 m to 12.0 m) averaging 26.97 g/t gold, minor silver
Trench 6:No significant intersections

A table showing the mineralized sample intervals reporting more than 1.0 g/t gold follows:

Trench
#
DescriptionFrom
(m)
To
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
1Schist0.01.01.01.10<0.01
1Schist1.02.01.06.93<0.01
1Quartz vein13.014.01.013.505.2
1Quartz vein18.019.01.03.520.3
2Schist with qtz9.010.01.02.47<0.1
2Quartz vein20.021.01.00.220.9
2Quartz vein21.022.01.03.743.3
2Quartz vein22.023.01.00.880.8
2Quartz vein23.024.51.520.788.5
2Schist with qtz24.525.51.012.6710.8
2Quartz vein25.526.51.017.308.9
2Quartz vein26.527.51.018.7410.3
2Schist with qtz27.528.51.00.120.2
2Quartz vein28.529.51.04.121.0
2Schist with qtz29.530.51.00.480.3
3Quartz vein9.510.51.07.150.8
3Quartz vein10.511.00.50.01<0.1
3Schist with qtz11.012.01.013.3111.6
3Schist with qtz12.013.01.00.03<0.1
3Quartz vein13.014.01.02.40<0.1
3Schist with qtz14.015.01.03.220.4
3Schist15.016.01.01.94<0.1
4Schist with qtz1.02.01.00.490.5
4Schist with qtz2.03.01.028.195.7
4Schist with qtz3.04.01.010.674.4
4Schist with qtz4.05.01.014.706.9
4Schist with qtz5.06.01.08.707.4
4Schist with qtz6.07.01.013.327.2
4Quartz vein7.08.01.01.009.0
4Quartz vein8.09.01.09.427.4
4Quartz vein9.010.01.01.993.7
4Quartz vein10.011.01.02.304.5
4Quartz vein11.012.01.00.904.9
4Schist12.013.01.00.152.0
4Quartz vein13.014.01.05.464.5
4Quartz vein14.015.01.045.3111.6
4Schist15.016.01.02.431.6
4Schist16.017.01.00.520.1
5Quartz vein8.09.01.00.36<0.1
5Quartz vein9.010.01.018.232.0
5Quartz vein10.011.01.048.095.9
5Quartz vein11.012.01.014.58<0.1

Trenches averaging 2 metres in depth were excavated by hand, perpendicular to the strike of the steeply dipping vein systems, to locate the quartz veins and, in some cases, silicified zones in the host schist. The veins, which strike northeast-southwest and dip approximately 70° to 75° to the northwest, consist of milky quartz and in some cases quartz-adularia and contain galena, pyrite, arsenopyrite and visible gold. The floor of each trench was sampled with continuous one metre channel samples.

Metallic Screen Analysis

Due to the coarse nature of the gold, the Company uses 500 gram metallic screened gold assays for analyzing samples. If metallic screen analysis was not performed, the nugget effect in the deposit would produce extremely high gold assays which would not be representative and reproducible. The procedures for metallic screen assays are as follow:

Samples are dried and crushed to <10 mesh, riffle split to 500 grams which is pulverized, the coarse fraction of which is then screened out by using a 150 mesh size screen. The entire >150 mesh and 2 portions of minus fraction (30 grams each) are assayed separately using a standard 30 gram assay and a combined total gold in grams per tonne is calculated based on the weight of both fractions. Because of the nugget effect of the coarse gold present on the property, sometimes the <150 mesh sample was analysed a third time when the assays were not similar. This third assay was included in the final <150 mesh assay average.

The following table shows the variations between >150 mesh, <150 mesh and total samples.

Sample
#
Total Sample Weight
(g)
>
150
Mesh
Sample
Weight
(g)
<
150
Mesh
Sample
Weight
(g)
Au
(g/t)
>
150
Mesh
Gold
Assay
Au
(g/t)
<
150
Mesh
Assay 1
Au
(g/t)
<
150
Mesh
Assay 2
Au
(g/t)
<
150
Mesh
(Average
of Assay
1&2)
Au
(g/t)
Total
Weighted
Average
>
150
Mesh &
<
150
Mesh
172701130.5032.5098.000.770.300.500.400.49
172702176.2268.22108.0050.3813.9714.3714.1728.19
172703144.0956.0988.0018.515.236.135.6810.67
172704136.7928.79108.0051.095.034.965.0014.70
17270595.598.5987.0029.926.606.606.608.70
172706148.6652.6696.0027.865.205.485.3413.32
172707114.492.49112.000.921.010.991.001.00
172708117.7239.7278.0020.673.833.563.709.42
172709121.940.94121.001.321.862.152.001.99
172710143.6849.6894.003.291.921.621.772.30
172711120.1753.1767.000.960.711.000.860.90
172712121.7536.7585.000.530.400.370.390.43
172713119.010.01119.0010,140.002.392.302.352.77

NOTE: Samples taken (ranged from 95 grams to 180 grams) were less than the 500 grams required so the whole sample was pulverized and screened.

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices. As described in the Company's news release dated March 9, 2011, the program includes chain of custody responsibility of samples in sealed bags. The samples are delivered to a preparation facility of Inspectorate America Corporation ("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), in Managua. The samples are crushed to <10 mesh, then a 500 gram sample is classified with a 150 mesh screen. The coarse fraction (>150 mesh) is weighed and placed in a sample container and the fine fraction (<150 mesh) is weighed and placed in a separate container. The screened samples are couriered via DHL to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. All of the coarse fractions and two 30 gram splits of the fine fraction are then tested by fire assay techniques. The <150 mesh samples were used for Inductively Coupled Plasma Spectroscopy (ICP) analysis, testing for silver.

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, 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.

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 judgent as of the date hereof, based on information currently available.

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/grr0502map.pdf.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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