Golden Reign Resources Ltd.: Continuity of Mina Estrella Vein Confirmed by Trenching
24.03.2011 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - March 24, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE: GRR) is pleased to report initial results from its systematic trenching program, which commenced in late 2010 in the Northern (Murra) District and continued in 2011 in the Southern (San Albino) District.The extensive trenching program, planned to comprise 31 trenches with an aggregate length of approximately 800 metres, will expose mineralized quartz veins discovered during regional mapping and document the strike and continuity of the veins, width of the veins, and gold grade. The Company will correlate the trench results with the original underground or surface grab sample results.
Initial trenching at the Mina Estrella prospect located in the Northern District consisted of five trenches, averaging 25 metres in length for a total of 133 metres. Trenching exposed two steeply dipping veins ranging from 2 to 5 metres in width, which extend over a mapped length of at least 100 metres. Individual veins have been traced by prospecting for over 200 metres.
Trenches were sampled with continuous one metre channel samples along the floor, vertical channel samples every five metres to give an assay profile up the walls of the trenches, and along the exposure of the veins. A total of 248 one-metre long samples were collected from the five trenches at Mina Estrella.
The best result received from sampling of the trench floors was two metres averaging 10.72 g/t gold in Trench #2. The remaining samples from the trench floors all returned less than 4.0 g/t gold. A table showing the sample intervals reporting more than 1.0 g/t gold follows:
Trench # Description From (m) To (m) Interval (m) Gold (g/t)
1 floor channel sample 0.0 1.0 1.0 3.43
1 floor channel sample 27.5 28.5 1.0 1.82
2 floor channel sample 0.0 1.0 1.0 1.08
2 floor channel sample 4.5 5.5 1.0 2.64
2 floor channel sample 5.5 6.9 1.4 2.84
2 floor channel sample 6.9 7.9 1.0 1.08
2 floor channel sample 13.3 14.3 1.0 1.72
2 floor channel sample 14.3 15.3 1.0 0.29
2 floor channel sample 15.3 16.3 1.0 3.79
2 floor channel sample 16.3 17.3 1.0 0.42
2 floor channel sample 17.3 18.3 1.0 12.05
2 floor channel sample 18.3 19.3 1.0 9.39
2 floor channel sample 21.3 21.9 0.6 2.60
3 floor channel sample 8.2 8.9 0.7 1.10
5 floor channel sample 34.0 35.0 1.0 1.42
5 floor channel sample 35.0 36.0 1.0 1.39
Trenches were oriented perpendicular to the strike of the steeply plunging vein system and averaged 3 metres in depth, to a maximum depth of 5.2 metres in Trench #4. The trenches only reached the hanging wall or the tops of the veins. In Trench # 4, the excavator was unable to reach the vein and thus returned no values in the floor above 1g/t gold.
At Mina Estrella, high grade mineralization tends to occur where the veins split or bend, creating more open space for mineralizing fluids. The best trenching results came from sampling along the vein in Trench #3 (please see the attached map), which returned excellent results down-dip in the vein and produced the following intersection:
Trench # 3 – 7.0 metres (down dip) of 15.89 g/t Au, including:
- 2.0 metres of 46.49 g/t Au; and,
- 1.0 metre of 72.15 g/t Au
Sample # Description Type of Sample Width (m) Au (g/t)
173886 Trench #3 – channel sample along vein quartz vein 1.0 2.52
173887 Trench #3 – channel sample along vein quartz vein 1.0 2.64
173888 Trench #3 – channel sample along vein quartz vein 1.0 6.37
173889 Trench #3 – channel sample along vein quartz vein 1.0 5.58
173890 Trench #3 – channel sample along vein quartz vein 1.0 1.15
173891 Trench #3 – channel sample along vein quartz vein 1.0 20.83
173892 Trench #3 – channel sample along vein quartz vein 1.0 72.15
The veins consist of milky quartz and in some cases quartz-adularia and contain pyrite, arsenopyrite and visible gold. Abundant iron and manganese oxides are present in cavities within the vein. The vein system strikes northeast-southwest and dips steeply to the northwest.
Quality Assurance
The Company has implemented a rigorous QA/QC program using best industry practices. As described in the Company\'s news release dated March 9, 2011, the program includes chain of custody of samples in sealed bags, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards. The samples are delivered to a preparation facility of Inspectorate America Corporation ("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), for gold assay. The samples were crushed to -10 mesh, then split to 500 gram sample and couriered via DHL to Inspectorate\'s analytical laboratory in Richmond, British Columbia, Canada. All of the 500 gram samples were analyzed for gold using metallic screen preparation and fire analysis methods and for silver and 30 elements by using Inductively Coupled Plasma Spectroscopy (ICP).
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, 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 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 spans the Property, stretching from Las Conchitas in the south to the northeast mining town of Murra. Old workings exist along the corridor. 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 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 judgent as of the date hereof, based on information currently available.
To view the map accompanying this press release please visit the following link:
http://media3.marketwire.com/docs/grmap324.pdf
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
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