Golden Reign Resources Ltd.: Lab Data Entry Error Detected
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/19/11 -- Golden Reign Resources Ltd. (the 'Company' or 'Golden Reign') (TSX VENTURE: GRR) announces that a material data entry error has been identified with respect to metallic screened gold assays reported in news releases NR11-11 and NR11-14 dated April 6, 2011 and May 2, 2011, respectively. Silver grades were not affected by this clerical error.
The affected assays pertain to results from underground sampling at the Mina Francisco adit and six trenches located in the San Pablo area of the Southern (San Albino) District. The laboratory error impacts 53 of a total 58 reported samples. The Company is confident and has the full assurance of the laboratory - Inspectorate America Corporation ('Inspectorate'), a certified USA based laboratory (ISO 17025) - that the error is an isolated incident affecting only the samples disclosed in this news release.
Correction of the data entry error has resulted in a reduction of the original gold assays by approximately 30%. The error arose during the calculation of the final total gold analysis, when an incorrect weight of the original screened sample was used. Inspectorate, did not ship the entirety of the 500 gram samples from its preparation facility to its analytical laboratory in Richmond, British Columbia. The preparation facility sent all of the plus 150 mesh fraction and approximately 30% of the minus 150 mesh fraction for all samples. Included with these samples was a list of the original sieved weights. Instead of using the entire 500 gram sieved sample weight (as reported on the sample shipment list) in the calculation of the combined gold analysis, the analytical laboratory used the reduced weight of sample that was shipped to Canada. The data entry error was recognized by Inspectorate when the sample weight discrepancy was questioned by the Company as part of its on-going quality assurance and quality control program ('QA/QC') program.
The revised gold assays are presented below and compared to the previously reported results.
Mina Francisco (NR11-11):
Sampling highlights of 9.0 metres of 7.43 g/t gold (originally reported as 15.23 g/t gold)
Including: 2.5 metres of 11.72 g/t gold (originally reported as 25.26 g/t
gold); and
0.5 metre of 20.18 g/t gold (originally reported as 47.24 g/t
gold)
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Correct-
Length Orig- Corr- ed Assay
of inal ected as % of
Prospect Sample Type of Type of sample Rock Assay Assay Original
Name # Working Sample (m) type Au (g/t) Au (g/t) Assay
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Schists,
Mina Chip Qtz
Francisco 172743 Tunnel channel 1.0 veinlets 4.46 2.40 54%
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Mina Chip
Francisco 172778 Tunnel channel 0.5 Quartz 0.06 0.05 83%
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Mina Chip
Francisco 172779 Tunnel channel 1.0 Quartz 4.43 1.82 41%
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Mina Chip
Francisco 172780 Tunnel channel 1.0 Quartz 31.16 14.22 46%
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Mina Chip
Francisco 172781 Tunnel channel 1.0 Quartz 8.36 5.00 60%
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Mina Chip
Francisco 172782 Tunnel channel 0.5 Quartz 47.24 20.18 43%
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Mina Chip
Francisco 172783 Tunnel channel 1.5 Quartz 19.49 8.10 42%
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Mina Chip
Francisco 172784 Tunnel channel 1.0 Quartz 17.50 12.75 73%
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Mina Chip
Francisco 172785 Tunnel channel 1.0 Quartz 5.87 2.99 51%
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Mina Chip
Francisco 172786 Tunnel channel 1.5 Quartz 5.52 3.32 60%
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Mina Chip
Francisco 172787 Tunnel channel 1.2 Quartz 16.03 6.72 42%
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Mina Chip
Francisco 172788 Tunnel channel 2.0 Quartz 0.15 0.16 107%
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Mina Chip
Francisco 172789 Tunnel channel 1.2 Quartz 0.40 0.30 75%
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Mina Chip
Francisco 172790 Tunnel channel 1.2 Quartz 0.29 0.21 72%
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Mina Chip
Francisco 172791 Tunnel channel 2.0 Quartz 0.14 0.14 100%
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Schists,
Mina Chip Qtz
Francisco 172792 Tunnel channel 1.0 veinlets 0.04 0.04 100%
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San Pablo Trenches (NR11-14):
Highlights from the sampling are:
Trench 1: 2.0 metres averaging 0.55 g/t gold (originally reported as 4.02
g/t gold)
and 1.0 metre averaging 6.68 g/t gold (originally reported as13.50
g/t gold)
and 1.0 metre averaging 1.11 g/t gold (originally reported as 3.52
g/t gold)
Trench 2: 1.0 metre averaging 0.43 g/t gold (originally reported as 2.47
g/t gold)
and: 8.5 metres averaging 8.94 g/t gold (originally reported as 9.22
g/t gold)
including: 4.5 metres averaging 15.26 g/t gold (originally reported as
15.44 g/t gold)
Trench 3: 6.5 metres averaging 1.80 g/t gold (originally reported as 4.32
g/t gold)
including: 1.0 metre averaging 6.54 g/t gold (originally reported as 13.31
g/t gold)
Trench 4: 16.0 metres averaging 6.25 g/t gold (originally reported as 9.10
g/t gold)
including 9.0 metres averaging 6.51 g/t gold (originally reported as 10.03
g/t gold)
and 3.0 metres averaging 13.14 g/t gold (originally reported as
17.73 g/t gold)
Trench 5: 3.0 metres averaging 9.19 g/t gold (originally reported as 26.97
g/t gold)
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Corrected
Assay as %
Original Corrected of
Trench From Interval Assay Au Assay Au Original
# Description (m) To (m) (m) (g/t) (g/t) Assay
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1 Schist 0.0 1.0 1.0 1.10 0.32 29%
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1 Schist 1.0 2.0 1.0 6.93 0.77 11%
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1 Quartz vein 13.0 14.0 1.0 13.50 6.68 49%
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1 Quartz vein 18.0 19.0 1.0 3.52 1.11 32%
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2 Schist with
qtz 9.0 10.0 1.0 2.47 0.43 17%
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2 Quartz vein 20.0 21.0 1.0 0.22 0.17 77%
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2 Quartz vein 21.0 22.0 1.0 3.74 3.59 96%
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2 Quartz vein 22.0 23.0 1.0 0.88 0.85 97%
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2 Quartz vein 23.0 24.5 1.5 20.78 13.67 66%
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2 Schist with
qtz 24.5 25.5 1.0 12.67 12.53 99%
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2 Quartz vein 25.5 26.5 1.0 17.30 15.40 89%
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2 Quartz vein 26.5 27.5 1.0 18.74 20.24 108%
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2 Schist with
qtz 27.5 28.5 1.0 0.12 0.12 100%
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2 Quartz vein 28.5 29.5 1.0 4.12 2.75 67%
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2 Schist with
qtz 29.5 30.5 1.0 0.48 0.43 90%
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3 Quartz vein 9.5 10.5 1.0 7.15 3.07 43%
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3 Quartz vein 10.5 11.0 0.5 0.01 0.02 200%
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3 Schist with
qtz 11.0 12.0 1.0 13.31 6.54 49%
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3 Schist with
qtz 12.0 13.0 1.0 0.03 0.04 133%
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3 Quartz vein 13.0 14.0 1.0 2.40 0.64 27%
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3 Schist with
qtz 14.0 15.0 1.0 3.22 1.11 34%
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3 Schist 15.0 16.0 1.0 1.94 0.26 13%
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4 Schist with
qtz 1.0 2.0 1.0 0.49 0.42 86%
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4 Schist with
qtz 2.0 3.0 1.0 28.19 18.99 67%
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4 Schist with
qtz 3.0 4.0 1.0 10.67 7.08 66%
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4 Schist with
qtz 4.0 5.0 1.0 14.70 7.71 52%
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4 Schist with
qtz 5.0 6.0 1.0 8.70 7.01 81%
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4 Schist with
qtz 6.0 7.0 1.0 13.32 7.66 58%
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4 Quartz vein 7.0 8.0 1.0 1.00 1.00 100%
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4 Quartz vein 8.0 9.0 1.0 9.42 5.22 55%
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4 Quartz vein 9.0 10.0 1.0 1.99 2.00 101%
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4 Quartz vein 10.0 11.0 1.0 2.30 1.92 83%
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4 Quartz vein 11.0 12.0 1.0 0.90 0.87 97%
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4 Schist 12.0 13.0 1.0 0.15 0.15 100%
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4 Quartz vein 13.0 14.0 1.0 5.46 5.40 99%
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4 Quartz vein 14.0 15.0 1.0 45.31 32.10 71%
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4 Schist 15.0 16.0 1.0 2.43 1.92 79%
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4 Schist 16.0 17.0 1.0 0.52 0.53 102%
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5 Quartz vein 8.0 9.0 1.0 0.36 0.15 42%
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5 Quartz vein 9.0 10.0 1.0 18.23 7.20 39%
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5 Quartz vein 10.0 11.0 1.0 48.09 15.770 33%
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5 Quartz vein 11.0 12.0 1.0 14.58 4.59 31%
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Golden Reign is, obviously, extremely disappointed and concerned that such an error has occurred. However, the Company is satisfied that Inspectorate has taken the necessary measures to correct this situation and put into place safeguards to prevent such errors in the future. In addition, the Company plans to increase the number of check assays it performs. Presently, Golden Reign undertakes one duplicate check assay for every 50 samples. Hereafter, the Company plans to perform one check assay for every 25 samples, with an emphasis on mineralized intervals. Check assays are performed by an independent laboratory other than Inspectorate.
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 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.
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Senergy Communications Inc.
Anthony Zelen
Investor Relations
778-331-2028
anthony@senergyir.com
www.senergyir.com