Golden Reign Resources Ltd.: Second Drill Rig in Operation, Update on Drilling at San Albino
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/12/11 -- Golden Reign Resources Ltd. (the 'Company' or 'Golden Reign')(TSX VENTURE: GRR) is pleased to announce that a second diamond drill has now been added to its San Albino-Murra Gold Property (the 'Property'), Nicaragua.
A total of 3,682.5 metres in 16 drill holes have been cored to date by the first drill rig. Spaced approximately 50 metres apart, the drill holes extend in a southwesterly direction testing the continuity and extension of the mineralized structures mapped on surface and intersected by the 2010 drill program. The strike length of the two main mineralized zones - San Albino and Arras - has now been extended to 550 metres. Both zones remain open along strike and at depth. A further three holes are planned in the first fence, for a total of 19 drill holes. Initially, the first fence was to comprise 9 diamond drill holes but was continued along strike due to the continuing interception of potentially ore grade mineralization.
Five holes were extended to depth to successfully test the Arras zone, thus confirming the down-dip extension of that vein and indicating continuity along strike of at least 335 metres. Arras, one of several parallel mineralized structures, underlies the San Albino zone and originates approximately 400 metres to the east.
In all, a series of 6 fences of drill holes are planned for the Phase I infill diamond drill program which will consist of up to 10,000 metres of definition drilling. The Company intends to further extend the mineralized area, refine the geological model and obtain sufficient data to calculate a NI 43-101 compliant mineral resource for San Albino/Arras. The addition of the second drill rig will assist in expediting the infill drill program.
San Albino/Arras represents approximately a 2 square kilometre area within the highly prospective Southern (San Albino) District of the Property, which covers roughly 24 square kilometres. The San Albino Mine area flanks the northwestern edge of a structural corridor, approximately 3 kilometres wide by 15 kilometres long, which spans the entire Property. Old workings and showings exist throughout the corridor. The Central and Northern Districts of the Property have yet to be tested by drilling.
Quality Assurance
The Company has implemented a rigorous QA/QC program using best industry practices, involving insertion of appropriate blanks and duplicates. All drill holes are sampled on at most a 1.0 metre interval within the mineralized zones, with drill core split on site and one half then being transported to the Inspectorate America Corporation ('Inspectorate'), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), preparation facility in Managua. The samples are then transferred to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. Duplicate samples have also been sent to Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, Canada, for comparative analysis.
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.
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:
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