Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

October 06, 2011 14:35 ET

Golden Reign Resources Ltd.: Third Drill Rig Mobilized, Trenching Intersects 5.0 Metres of 14.78 g/t Gold and 14.0 Metres of 5.89 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to announce the mobilization of a third diamond drill machine to its San Albino-Murra Project, Nicaragua.

The drill rig is being deployed to the San Pablo and Las Conchitas areas of the Southern (San Albino) District where on-going trenching has outlined numerous drill targets, including four newly discovered, highly prospective mineralized zones. An initial six drill holes, comprising approximately 3,000 metres, are planned to test these areas.

Several structurally controlled mineralized zones, containing a system of parallel, quartz veins ranging in width from 1 to 8 metres, have been traced at surface over a distance of two kilometres and remain open in at least two directions.

Recent trenching at Las Conchitas has intersected:

  • TR-22 – 5.0 metres of 14.78 g/t gold and 21.1 g/t silver
    including: 2.0 metres of 16.95 g/t gold and 24.9 g/t silver
  • TR-21 – 14.0 metres of 5.89 g/t gold and 11.8 g/t silver
    including: 4.0 metres of 8.46 g/t gold and 21.2 g/t silver and
    7.0 metres of 6.11 g/t gold and 9.8 g/t silver

Trench TR-22, situated approximately 200 metres northeast of trench TR-21, was designed to extend the strike length of mineralized zones exposed by trench TR-21. Significantly, both trenches are on strike with the historic Las Dolores mine, located 500 metres to the southwest, and appear to be a continuation of that high-grade vein system. Historical documents (1921) on the Las Dolores mine report an average vein width of 5.5 feet (1.7 metres), strike length of 500 feet (155 metres) and developed depth of 200 feet (62 metres). The two best samples collected and reported in 1921 returned 5.1 feet (1.6 metres) grading 1.5 ounces (47 g/t) of gold and 5.5 feet (1.7 metres) grading 1.14 ounces (35 g/t) gold. Note: The information regarding the Las Dolores Mine is historical in nature and therefore not NI 43-101 compliant. It should not be relied upon.

Drilling continues at San Albino/Arras, which lies approximately 1 kilometre to the north of San Pablo and Las Conchitas. Two diamond drill machines continue to progress the 2011 definition drilling program, which is designed to test the continuity and extension of mineralized structures laterally in both directions and to depth. Upon completion of the proposed 16,000 metres of drilling, the Company expects that it will have sufficient data to calculate a NI 43-101 compliant mineral resource. To date, 9,784 metres have been cored at San Albino/Arras.

Golden Reign is well funded, with approximately $5.7 million in cash. From May 2012 to date, proceeds of $1.44 million have been received from the exercise of 354,000 stock options and 1,968,500 warrant shares.

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,

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 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
    President & CEO
    (604) 685-4655 or Toll Free: 1-888-685-4655
    (604) 685-4675 (FAX)