Golden Reign Resources Ltd.: Underground Sampling at Mina Francisco Returns 13.04 g/t Gold and 22.7 g/t Silver
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/24/12 -- Golden Reign Resources Ltd. (TSX VENTURE: GRR) (the "Company") is very pleased to report assay results from additional underground channel sampling and trenching at Mina Francisco, located in the Southern District of its flagship San Albino-Murra Gold Property (the "Property"), Nicaragua.
Mina Francisco, an old underground working from the 1920's, is situated midway between the San Albino Mine area and the highly prospective Las Conchitas area, located approximately 1.5 kilometres from each. Very limited work was conducted historically at Mina Francisco, with minimal material removed.
In August 2012, the Company commenced rehabilitation of the mine adit that returned excellent results when partially accessed and sampled during 2011. A second entrance to the adit was discovered during the excavation of trench SAM12-TR-07, allowing Golden Reign to systematically sample the near-surface Mina Francisco vein which has now been exposed for 12 metres in strike length and 7 metres down-dip at a depth of only 5 metres from surface (see attached map, available at the following link: http://media3.marketwire.com/docs/grr0924.pdf).
In all, the Company collected 35 underground channel samples over the 12 metre strike length. Sampling of the true thickness of the mineralized zone exposed in the adit returned an average thickness of 1.56 metres grading 13.04 g/t gold and 22.7 g/t silver (see table below). Underground channel sampling highlights include:
-- 2.0 metres of 33.35 g/t gold and 42.8 g/t silver
-- 2.0 metres of 26.45 g/t gold and 30.7 g/t silver
-- 2.0 metres of 23.87 g/t gold and 40.8 g/t silver
Intended to find the surface trace of the highly mineralized Mina Francisco vein, the best interval from trench SAM-12-TR-07 returned 8.0 metres of 4.28 g/t gold and 12.6 g/t silver, comprised of:
SAM-12-TR-07 4.0 metres averaging 3.29 g/t gold and 18.0 g/t silver from
quartz vein
and 4.0 metres averaging 5.28 g/t gold and 7.3 g/t silver from
schists
A second trench, SAM-12-TR-08, intercepted an additional, parallel mineralized vein approximately 20 centimetres wide which returned 1.0 metre of 4.52 g/t gold and 11.1 g/t silver. Sampling of the host rock (schists), containing quartz veinlets, returned 2.0 metres of 7.44 g/t gold and 6.5 g/t silver, including 14.32 g/t gold and 10.4 g/t silver. This vein is located approximately 50 metres southwest of and above the Mina Francisco adit.
The Mina Francisco vein represents a portion of one of several parallel mineralized structures first exposed by trenching in 2011 that currently exceed 700 metres in strike length. The vein remains open in both directions and at depth.
Mapping of the underground workings indicates a northwest strike of 300 degrees and a dip of 40 degrees to the southwest. This is at right angles to the apparent regional strike to the vein system and reflects local contortions to the vein. The vein appears to be relatively flat lying and rolling, giving differing strike and dip measurements.
Underground Sampling Results from Mina Francisco adit:
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Gold Silver
Sample No.'s Metres (g/t) (g/t)
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76280 2.0 26.45 30.7
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76281 2.0 6.04 13.2
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76282 2.0 7.80 37.5
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76283 1.5 9.07 39.4
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76284 1.0 23.40 46.4
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76285 1.0 9.13 8.2
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76286 1.5 12.49 5.8
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76287 2.0 7.12 12.1
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76288 2.0 2.95 10.4
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76289 2.0 33.35 42.8
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76290 2.0 23.87 40.8
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(i)Average of 142401/402/403 1.4 11.45 12.6
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(i)Average of 142404/405/406 1.6 11.66 33.2
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(i)Average of 142407/408/409 1.4 17.78 18.5
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(i)Average of 142410/411/412 1.2 5.93 10.9
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(i)Average of 142413/414/415 1.2 12.41 27.2
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(i)Average of 142416/417/418 1.3 9.48 13.2
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(i)Average of 142419/420/421 1.4 8.05 10.6
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(i)Average of 142422/423/424 1.2 1.71 3.4
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(i)The averages in the table above have been calculated from three
vertical samples taken across the mineralized zone.
Mineralization consisting predominantly of galena, sphalerite, arsenopyrite and free gold is present in both the quartz vein and surrounding schists. Parting and inclusions of schists in various stages of alteration occurs throughout the mineralized zone. To test the nature and obtain a better understanding of the mineralization, some of the samples representing the true thickness of the zone were collected over sections with similar lithological characteristics and averaged, as presented in the table above.
San Albino-Murra Property
Over the past two years, aggressive exploration programs conducted by the Company - including regional geological mapping, trenching, geochemical surveys and drilling - have resulted in the discovery of the Corona de Oro Gold Belt. A structural corridor approximately 3 kilometres wide by 25 kilometres long that stretches from the El Jicaro Concession in the south to the north-eastern boundaries of the San Albino-Murra Property, the Corona de Oro Gold Belt hosts over 170 quartz vein structures, 112 adits, 148 mine dumps and 354 exploration pits.
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 recently earned an 80% interest in the San Albino-Murra Property, approximately 1.5 years ahead of schedule. The El Jicaro Property is 100% owned by Golden Reign.
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 20 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.
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.
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.
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