Golden Reign Resources Ltd.

Golden Reign Resources Ltd.

September 15, 2010 13:57 ET

Golden Reign Resources Ltd.: Update on Drilling at San Albino Mine Area, Additional High-Grade Assay Results From Murra

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 15, 2010) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is pleased to report that it has received additional significant assay results from a regional sampling program conducted in the northern block of its San Albino-Murra Gold Property (the "Property"), Nicaragua. The work in the northern Murra District is in addition to the current drill program in the southern San Albino District which is the Company's primary focus.

Northern, Murra District

Further to the excellent gold values obtained from the Mina Estrella prospect (see news release of September 8, 2010), Golden Reign has received additional sampling results for the Murra District. Two, north-south trending belts of mineralization, approximately one kilometre wide and up to ten kilometres long, have been located as a result of an intensive geological mapping, prospecting and sampling program. The mineralized belts lie within the approximately 3 kilometre wide by 15 kilometre long structural corridor that spans the Property.

The western belt is 10 kilometres long and includes a number of Spanish and artisanal workings: Mina San Gregorio, Mina Los Milagros, Mina La Virgen, Minas San Rafael, Mineral Garvi, Mina La Esperanza, Mina Guadalupe, El Plantel and Minas Americas. Select sampling results are tabulated below:

  Sample Type of   Length Rock Au
Prospect Name # Working Type of Sample (m) type (g/t)
Mina San Gregorio 171385 tunnel chip channel 1.0 quartz 58.32
Mineral Garvi 173671 mine dump grab   schist, 27.63
Minas Americas T#2 173683 mine dump representative grabs   quartz 11.22
Mina La Esperanza 173697 mine dump representative grabs   quartz 10.88
Mina Guadalupe 173694 mine dump representative grabs   quartz 4.02
Gregorio Sur 171265 outcrop grab   quartz 2.57
Mina Los Milagros 171389 tunnel grab   quartz 6.06
Mina Los Milagros 171391 mine dump representative grabs   quartz 8.28
Mina La Virgen 171272 tunnel chip channel 0.7 schist, 1.14
Mina La Virgen 171273 tunnel chip channel 1.0 schist, 2.77
El Plantel, Vein 4 171355 outcrop chip channel 0.3 phyllite 1.95

The eastern belt, which extends for at least 5 kilometres, encompasses Mina Estrella and other Spanish and artisanal workings, including Santo Domingo, Santa Elena, Danilo, Mina La Fortuna and El Manton. Continuous chip sampling of the Danilo 2 vein over 4.5 metres, across the width of the vein, returned an average of 4.63 g/t gold. These and other sampling results are as follows:

  Sample Type of   Length Rock Au
Prospect Name # Working Type of Sample (m) type (g/t)
Danilo 2 Vein 171309 outcrop chip channel 1.5 quartz 3.73
Danilo 2 Vein 171310 outcrop chip channel 1.0 quartz 8.00
Danilo 2 Vein 171311 outcrop chip channel 1.0 quartz 5.94
Danilo 2 Vein 171312 outcrop chip channel 1.0 schist, 1.28
Minas La Fortuna # 2 171334 mine dump representative grabs   quartz 10.59
Vein Emelina Carcamo 171301 outcrop chip channel 1.5 schist, 4.18
Mina Perico Tunnel 2 171362 tunnel chip channel 0.6 schist, 1.22

These very encouraging initial results from the regional mapping program will be followed by more detailed sampling and trenching of the mineralized areas. Regional mapping continues and will be extended to cover the Central District, an area of over 15 square kilometres, which is situated between Murra and San Albino.

Southern San Albino/Arras program

The Phase III diamond drilling program, consisting of approximately 1,500 metres at the historic San Albino Mine area in the southern San Albino District of the Property, is well advanced. The Company is currently completing its ninth and final drill hole at the San Albino Mine, prior to re-locating the drill rig to the Arras prospect. To date, a total of 1,058 metres of drilling has been completed.

The Arras/San Lorenzo zone, which is believed to extend underneath the San Albino mineralized zone, is a high-grade near surface mineralized structure at least 200 metres long, open along strike in both directions. Reverse-circulation drilling by a prior operator provided some excellent gold intercepts, including: 4 metres of 17.9 g/t, 4 metres of 28.2 g/t and 4 metres of 16.3 g/t. Drilling is planned to confirm the earlier results and further delineate the extension along strike and at depth.

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 is comprised of mineralized quartz veins and breccia zones. This corridor spans the Property, stretching from Las Conchitas in the south to the northeast mining town of Murra, encompassing numerous Spanish and artisanal workings, most of which yielded very limited production from near-surface high-grade quartz veins. 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)