Golden Reign Intersects 2.0 Metres Grading 85.86 g/t Gold and 35.1 g/t Silver at San Albino
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/15/12 -- Golden Reign Resources Ltd. (the 'Company' or 'Golden Reign')(TSX VENTURE: GRR) is pleased to report additional assay results from the 2011/2012 definition drill program underway at the San Albino Mine area of its flagship San Albino-Murra Gold Property (the 'Property'), Nueva Segovia, Nicaragua.
Drill holes SA 11-41, SA 11-42 and SA 11-43 have proven the northeast extension of the San Albino and Arras mineralized structures. Despite drilling through an area of extreme disturbance, where at least two fault zones appear to converge, each hole intersected both the San Albino and Arras mineralized zones. In SA 11-41, the first hole in which visible gold was observed in the core, the Arras zone returned:
-- SA 11-41: 2.0 metres of 85.86 g/t gold and 35.1 g/t silver
-- including 1.0 metre of 171.62 g/t gold and 68.8 g/t silver
-- comprised of 0.5 metres of 109.05 g/t gold and 48.2 g/t silver
plus 0.5 metres of 234.19 g/t gold and 89.4 g/t silver
Per the Company's standard QA/QC protocol, a duplicate sample from drill hole SA 11-41 was tested. The duplicate sample returned 2.0 metres of 99.28 g/t gold and 35.3 g/t silver. This includes 1.0 metre of 198.47 g/t gold and 69.3 g/t silver, comprised of two 0.5 metre samples grading 101.06 g/t gold and 43.0 g/t silver and 295.87 g/t gold and 95.6 g/t silver, respectively.
Highlights from the San Albino zone include:
-- SA 11-42: 4.0 metres of 4.48 g/t gold and 12.3 g/t silver
-- including 1.0 metre of 15.08 g/t gold and 24.3 g/t silver
-- SA 11-43: 1.0 metre of 4.22 g/t gold and 9.1 g/t silver
The strike length of the San Albino mineralized zone has been increased by a further 40 metres to approximately 600 metres. Arras, a high-grade near surface mineralized structure, has been extended along strike for a further 95 metres to 545 metres and down-dip for 600 metres. Both mineralized zones remain open along strike in all directions and at depth.
The San Albino Mine area represents only 2 square kilometres within the highly prospective 87 square kilometre San Albino-Murra Gold Property. Presently, Golden Reign has three drill rigs active at the San Albino Mine area.
The 2011/2012 definition drill program is designed to extend the mineralized area outlined in 2010, refine the geological model, and obtain sufficient data to calculate a NI 43-101 compliant mineral resource for the San Albino Mine area. The Company expects to complete drilling in March 2012 and the NI 43-101 compliant resource calculation in the first half of 2012.
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From To Width Au Au
Drill hole# Sample # (m) (m) (m) (g/t) (g/t)
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SAN ALBINO ZONE
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Drill hole SA 11-41 (130/75) was drilled to a depth of 299.80 metres.
Mineralization, disturbed by a subvertical fault, returned elevated gold
values over 5 metres, with the best interval returning 2.0 metres grading
3.51 g/t gold and 7.3 g/t silver.
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SA 11-41 8644 39.00 41.00 2.00 3.51 7.3
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SA 11-41 8645 41.00 43.00 2.00 0.19 1.1
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SA 11-41 8646 43.00 44.00 1.00 0.22 1.1
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Drill hole SA 11-42 (130/90), a vertical hole, was drilled to a depth of
305.00 metres. Mineralization was over 4.0 metres averaging 4.48 g/t gold
and 12.3 g/t silver, including 1.0 metre of 15.08 g/t gold and 24.3 g/t
silver.
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SA 11-42 8849 41.00 42.00 1.00 1.07 5.2
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SA 11-42 8851 42.00 42.50 0.50 0.64 3.9
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SA 11-42 8853 42.50 43.00 0.50 1.98 32.4
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SA 11-42 8855 43.00 43.50 0.50 9.87 4.3
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SA 11-42 8857 43.50 44.00 0.50 20.28 44.2
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SA 11-42 8859 44.00 45.00 1.00 0.45 1.6
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Duplicate samples of the mineralized intersection returned slightly higher
values and included 1.0 metre of 22.48 g/t gold and 43.8 g/t silver.
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SA 11-42 8852 Duplicate of #8851 0.50 0.74 3.5
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SA 11-42 8854 Duplicate of #8853 0.50 1.78 26.3
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SA 11-42 8856 Duplicate of #8855 0.50 8.52 6.2
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SA 11-42 8858 Duplicate of #8857 0.50 36.45 81.4
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SA 11-42 8860 Duplicate of #8859 1.00 0.25 1.4
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Drill hole SA 11-43 was drilled to a depth of 50.00 metres. The hole, which
twinned SA 11-41, was drilled with 3HQ in an effort to obtain better core
recovery in a highly faulted area. The mineralized intersection returned
1.0 metre grading 4.22 g/t gold and 9.1 g/t silver, including 0.50 metres
of 8.01 g/t gold and 16.5 g/t silver.
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SA 11-43 9131 33.00 33.50 0.50 8.01 16.5
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SA 11-43 9132 33.50 34.00 0.50 0.44 1.7
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ARRAS ZONE
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Arras mineralized intersection was 2.0 metres grading 85.86 g/t gold and
35.1 g/t silver, including 1.0 metre grading 171.62 g/t gold and 68.8 g/t
silver. Duplicate samples of the mineralized intersection returned 2.0
metres grading 99.28 g/t gold and 35.3 g/t silver, including 1.0 metre
grading 198.47 g/t gold and 69.3 g/t silver.
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SA 11-41 8776 217.00 217.50 0.50 0.08 1.2
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SA 11-41 8778 217.50 218.00 0.50 109.05 48.2
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SA 11-41 8780 218.00 218.50 0.50 234.19 89.4
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SA 11-41 8782 218.50 219.00 0.50 0.11 1.4
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Duplicate samples of the mineralized intersection returned 2.0 metres
grading 99.28 g/t gold and 35.3 g/t silver, including 1.0 metre grading
198.47 g/t gold and 69.3 g/t silver.
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SA 11-41 8777 Duplicate of #8776 0.50 0.07 1.2
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SA 11-41 8779 Duplicate of #8778 0.50 101.06 43.0
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SA 11-41 8781 Duplicate of #8780 0.50 295.87 95.6
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SA 11-41 8783 Duplicate of #8782 0.50 0.12 1.3
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The Arras zone mineralization intercepted by SA 11-42 was disturbed by
faults. It returned elevated gold and silver values over 4.0 metres.
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SA 11-42 9042 242.00 243.00 1.00 0.08 1.4
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SA 11-42 9044 243.00 244.00 1.00 0.02 1.7
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SA 11-42 9046 244.00 245.00 1.00 0.02 1.6
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SA 11-42 9048 245.00 246.00 1.00 0.04 1.9
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The Arras zone mineralization in drill hole SA 11-43 was also disturbed by
faults and returned only elevated gold and silver values.
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Note: Duplicate samples are not used for calculation of the average grade.
Board Appointment
The Company is also pleased to announce the appointment of Mr. John Conlon to its Board of Directors. Mr. Conlon has been involved in the mining industry since 1972, first as owner of Webcon Equipment Inc. He has over 40 years experience in the resource industry. Prior directorships include Western Canadian Coal Corp., Cambrian Mining PLC, Coal International Limited and Xtract Energy PLC.
Stock option grant
The Company has granted, pursuant to its stock option plan and subject to regulatory approval, 2,000,000 options to directors, officers, employees and consultants at an exercise price of $1.10 per share for a term of five years. The securities represented by this grant will be subject to a four-month hold period.
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 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.
Contacts:
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