Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

February 08, 2012 14:56 ET

Golden Reign Resources Ltd.: Underground Sampling at El Jicaro Property Returns 5.5 Metres Grading 12.33 g/t Gold and 25.6 g/t Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2012) - Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company" or "Golden Reign") is pleased to report the results from preliminary sampling work completed on its newly acquired El Jicaro Gold Property (the "Property"), Nueva Segovia, Nicaragua.

Golden Reign purchased the Property on the basis of historical data combined with the results from its successful 2011 major trenching program, which exposed numerous highly mineralized southwest trending structures within a distance of 1 kilometre. Showings and historical workings within the El Jicaro Property lie along strike of the mineralized structures exposed by trenching.

The El Jicaro Property has no fewer than 16 veins that were exploited by historical mines and workings, which were partially mined by the Spaniards in the late 1700's and then by larger scale operations until 1915. A reconnaissance sampling program by Golden Reign tested nine of these prospects, including:

Eureka Mine

  • comprised at least three adits, mostly collapsed
  • a continuous 5.5 metre underground channel sample from the partially collapsed Eureka Tunnel #2 returned 12.33 g/t gold and 25.6 g/t silver
  • grab samples from the 7.5 metre wide quartz vein in Eureka Tunnel #2 returned between 1.2 to 10.77 g/t gold

El Golfo Mine

  • comprised of at least four adits, mostly collapsed
  • El Golfo Tunnel #1 - two representative grab samples from a sizable mine dump returned 10.34 g/t gold and 12.8 g/t silver and 3.66 g/t gold and 7.2 g/t silver

Jacinto Vein #1

  • a representative grab sample from a sizable mine dump returned 26.53 g/t gold and 15.5 g/t silver

Comprehensive mapping, prospecting and trenching programs are planned for 2012 to identify drill ready targets. In addition, the Company plans to re-open several caved adits for further underground sampling.

Situated adjacent and to the south of the Company's flagship San Albino-Murra Gold Property, the El Jicaro Property covers an area of 5,071 hectares (51 km2), nearly doubling the Company's current land package to an aggregate 13,771 hectares (138 km2). Numerous historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company's land package.

Aggregate costs incurred to purchase and transfer title of the mining exploration and exploitation license were USD$150,000. The El Jicaro Concession license is valid for a period of twenty-five years, until September 28, 2033. The Concession was acquired from a third party, individual Nicaraguan title holder.

Prospect Name Sample # Description Au
g/t
Ag
g/t
El Golfo Tunnel #1 76504 Representative sample from mine dump (50m x 6m x 15m), quartz-adularia material with galena, sphalerite, aspy and py. 3.66 7.2
El Golfo Tunnel #1 76505 Same 10.34 12.8
El Golfo Tunnel #2 76506 Float sample from mine dump, quartz vein material with sulphides 2.76 2.8
Los Centeno - Tunnel #5 76692 Representative sample from mine dump (15m x 6m x 10m). Quartz and schist material. 10.09 3.8
Los Centeno Tunnel - Mine dump 173063 Representative sample from mine dump, quartz material with Fe-oxide and possible specs of azurite and pyrite crystals. 13.21 21.8
Los Centeno vein 173064 1 metre channel sample from quartz vein containing Fe-oxides and possible azurite. 13.69 5.2
Los Centeno vein 173065 1 metre channel sample from quartz vein containing Fe-oxides and possible azurite. 4.02 0.5
Los Centeno vein #1 76691 1.5 metre wide channel sample collected from quartz vein containing sulphides. Vein appear to strike in same direction as Los Centeno - Tunnel #5. 9.59 5.8
Los Centeno vein #2 76694 Quartz vein situated 100 metres apart from Tunnel #5, approx. 1.5 metres wide, contains sulphides and Fe-oxide. Sample 1 metre. 5.31 3.8
Mine Dump #1 - (El Limon) 76695 Mine dump situated 400 metres SW from old mine El Limon. Quartz material with sulphides and Fe-oxides. 2.76 3.6
Jacinto vein #1 - Pits/Mine dump 76828 Representative sample from mine dump (20m x 6m x 10m) within the area of numerous historical workings - pits. Quartz vein material containing sulphides (galena, scorodite, py). 26.53 15.5
Jacinto vein #1 - Pits/Mine dump 76829 Representative sample from mine dump (20m x 6m x 10m) within the area of numerous historical workings - pits. Quartz vein material containing sulphides (galena, scorodite, py). 3.04 5.0
El Jicarito Tunnel #1 - Mine dump 76833 Representative sample from mine dump (20m x 10m x 5m). Quartz-adulara material containing galena, scorodite and pyrite. 6.57 15.6
Eureka Tunnel #2 76844 Tunnel #2, Eureka, partially collapsed. Quartz vein up to 7.5 metres wide, vertical sample on SW wall of tunnel, galena, aspy, py, visible gold. 1.5 metre channel sample 10.77 0.4
Eureka Tunnel #2 76845 Same, 1.5 metre channel sample 7.01 0.6
Eureka Tunnel #2 76847 Same, 1.5 metre channel sample 4.98 0.7
Eureka Tunnel #2 76849 Same, 2.0 metre channel sample 7.51 0.9
Eureka Tunnel #2 72303 Same, 1.0 metre channel sample 2.82 8.9
Eureka Tunnel #2 72305 Sample collected from the ceiling of tunnel. Qtz vein with sulphides. 2.0 metre channel sample 1.20 9.9
Eureka Tunnel #2 Continuous 5.5 metre channel sample collected in the gallery (open stope). Quartz vein contains galena, aspy, py, Fe-oxides, visible gold 12.33 25.6
including 72314 1.0 metre channel sample 7.52 25.2
including 72315 1.5 metre channel sample 20.29 45.0
including 72316 1.5 metre channel sample 12.98 17.5
including 72317 1.5 metre channel sample 6.94 14.7
Eureka Tunnel #2 72322 Quartz vein in gallery-NW wall, 1.0 metre channel sample 5.82 15.0

To view a map of the El Jicaro property click on: http://media3.marketwire.com/docs/grr.pdf

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 and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.

The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company's land package.

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 at 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 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)
    www.goldenreign.com