Golden Reign Progresses San Albino Gold Project
Vancouver, BC / TheNewswire / June 9, 2016 - Golden Reign Resources Ltd. (TSX-V: GRR) (the "Company" or "Golden Reign") is pleased to provide an update on progress at its 100% owned San Albino Gold Project, located in Nueva Segovia, Nicaragua.
Golden Reign has completed its' previously announced metallurgical/infill diamond drill program at the planned San Albino open-pit mine site. The additional infill drilling and trenching will provide further detailed understanding of the mineable open-pit resources. Significant results received to date include 3.8 metres of 22.51 g/t gold and 31.5 g/t silver, 2.0 metres of 24.85 g/t gold and 14.5 g/t silver, 3.25 metres of 11.37 g/t gold and 5.7 g/t silver, and 4.2 metres of 8.21 g/t gold and 28.9 g/t silver (see news release dated May 12, 2016). Further assay results are pending and will be released when available.
Drilling continues. Two drill rigs are active at the San Albino Gold Project. The drill rig used for the metallurgical/infill program has been moved to the planned infrastructure areas and condemnation drilling has commenced. The second machine, a reverse-circulation (RC) drill rig, has begun closely spaced pre-production, grade control drilling.
The metallurgical/infill and condemnation drill programs are integral in progressing the San Albino project and obtaining final permitting prior to development of the mine.
Metallurgical / Infill Drilling Program Completed
The combined metallurgical/infill drilling program announced on April 5, 2016 is now complete. In all, 56 diamond drill holes were cored over 2,175.3 metres - all located within the proposed San Albino open-pit mine.
The primary goal of the program was to provide sufficient mineralized material for the final stage of metallurgical test work, allowing for the refinement of the already high metallurgical recoveries. In 2014,
composites of low and high grade mineralization tested for gold recovery using centrifugal gravity concentration followed by cyanide leaching using the CIL process yielded total gold recoveries in the range of 91.0 to 93.5%. (see new release dated March 27, 2014 entitled "Golden Reign Recovers 91% Of Gold in Metallurgical Tests of Potential Oxide Open Pit").
A secondary objective of the program was to further confirm grade and structural continuity, testing the limits of the pits and extension of the San Albino mineralization. This was achieved by infill drill holes and completing additional surface work - trenches and exploration pits - to expose and affirm near-surface high grade mineralization and establish the thickness of the main mineralized zones.
A total of 11 holes were drilled at the Arras prospect (Central Pit), 44 holes targeted the San Albino prospect (West Pit) and one drill hole was completed on the south slope of San Albino hill (SW Pit). Initial assay results were announced on May 12, 2016. Additional results are pending and will be used to update the Company's open-pit resource model and refine mine plans.
Condemnation Drilling Program Started
Condemnation drilling commenced upon completion of the metallurgical/infill drill program. Golden Reign has planned 965 metres of drilling across 17 holes to test the proposed infrastructure locations. The goal of the program is to ensure that the proposed mill, waste dump and tailings are sited on barren or uneconomic rock as to not compromise future mining operations.
Pre-Production Drilling Commences
Pre-production drilling at San Albino open-pit deposit has begun. An RC drill rig is currently on site and has begun a 3,000 metre program. Closely spaced drilling will focus on the area to be mined within the initial six months of planned production, and to further optimize mine planning and scheduling. The RC drill program will target high grade, near-surface mineralization within the Central and West Pits.
Permitting Status
Final permitting is largely dependent upon completion of the metallurgical test work, acid rock drainage (ARD) testing and condemnation drilling, along with additional surveys currently underway (geotechnical, air quality control, and water quality control). The above-noted will comprise part of the Company's environmental impact assessment (EIA) study, required to obtain its environmental permit.
Qualified Persons
John M. Kowalchuk, P.Geo., a geologist and Company qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release on behalf of the Company.
On behalf of the Board,
"Kevin Bullock"
Kevin Bullock, P.Eng.
CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: 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 prime objective is to bring its high-grade San Albino Gold Project into production quickly and efficiently, building cash flow to further advance a number of its other highly prospective exploration targets.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 23 kilometres long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com. You may also follow us on Facebook, Twitter, and LinkedIn.
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, potential mineral recovery processes and rates, 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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