Golden Reign Resources Ltd.: Drilling Confirms High Grade Gold Discovery at Las Conchitas
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/22/12 -- Golden Reign Resources Ltd. (TSX VENTURE: GRR) (the 'Company' or 'Golden Reign') is extremely pleased to report results from the initial drill program at the Las Conchitas area of its flagship San Albino-Murra Gold Property (the 'Property'), Nueva Segovia, Nicaragua.
The drill program was designed to follow up an extensive 2011 trenching program that outlined numerous drill targets and successfully exposed a system of sub-parallel, gold-bearing quartz veins ranging from 1 to 8 metres in true width. Trenching was oriented perpendicular to the mineralized zones, which have been traced at surface over a distance of two kilometres and remain open in at least two directions and at depth. In all, four newly discovered, highly prospective mineralized zones were identified.
In 2011, trench TR11-1 exposed a gold-bearing quartz vein, Cruz 1, which returned:
-- 2.0 metres of 26.27 g/t gold and 17.4 g/t silver; and
-- 5.0 metres of 5.21 g/t gold and 7.3 g/t silver; and
-- 2.6 metres of 3.70 g/t gold and 5.9 g/t silver.
Initial drilling at Las Conchitas tested the down-dip extension of the Cruz 1 vein. Highlights from drilling include:
-- LC 11-01 - 3.0 metres of 62.96 g/t gold and 61.7 g/t silver
-- LC 11-02 - 3.0 metres of 12.01 g/t gold and 13.1 g/t silver
-- including 1.2 metres of 29.80 g/t gold and 31.7 g/t silver
-- LC 11-03 - 2.5 metres of 14.96 g/t gold and 25.4 g/t silver
-- including 1.0 metre of 36.53 g/t gold and 60.6 g/t silver
-- LC 11-04 - 1.5 metres of 9.44 g/t gold and 17.3 g/t silver
-- including 0.6 metres of 20.64 g/t gold and 37.0 g/t silver
-- LC 11-05 - 5.0 metres of 8.63 g/t gold and 3.5 g/t silver
-- including 1.0 metre of 35.70 g/t gold and 2.0 g/t silver
Las Conchitas hosts several significant, newly discovered gold bearing veins, with the Cruz 1 vein being the first to be tested by drilling. Golden Reign has confirmed a 400 metre down-dip extension of the Cruz 1 vein, a high-grade gold structure initially observed in trench TR 11-01. The first three drill holes, LC 11-01 through LC 11-03, were located approximately 150 metres from trench TR 11-01. LC 11-03 and LC 11-04 were located at a distance of approximately 250 metres from the first drill pad and 400 metres from trench TR 11-01. A cross section of the drill holes is shown here: http://media3.marketwire.com/docs/grr1.pdf.
The Cruz 1 vein was intersected in all five drill holes and demonstrated very good continuity of width and grade. The style of mineralization of the vein appears identical in each of the drill holes and is represented by bands of massive galena, sphalerite and arsenopyrite.
In addition, several other mineralized zones, similar in style of mineralization to the Cruz 1 vein, were intersected. The Cruz 2 zone, which was intersected in LC 11-02, LC 11-04 and LC 11-05, also demonstrates good continuity of width and grade:
-- LC 11-02 - 0.5 metres of 4.17 g/t gold and 14.8 g/t silver
-- LC 11-04 - 1.9 metres of 3.24 g/t gold and 6.0 g/t silver
-- including 0.5 metres of 6.05 g/t gold and 14.3 g/t silver
-- LC 11-05 - 1.0 metre of 6.49 g/t gold and 4.0 g/t silver
In both LC 11-04 and LC 11-05, four separate zones of mineralization were encountered.
The Company plans to complete additional drilling at Las Conchitas during Summer 2012 to further test the Cruz vein and at least five other drill targets exposed by the 2011 trenching program.
The Las Conchitas area lies approximately 2.5 kilometres south of the historic San Albino Mine area where three drill rigs are currently completing a definition drill program which will result in the Company's maiden resource calculation expected to be completed in the first half of 2012. It is also situated 0.5 kilometres north the recently acquired El Jicaro Concession which hosts the historic El Golfo Mine. Both the San Albino and the El Golfo mines were developed and partially exploited in the early 1900's.
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Drill From To Width Au Ag
Hole # Sample # (m) (m) (m) Comments (g/t) (g/t)
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Drill hole LC11-01 (135/45) intersected the Cruz 1 vein which returned 3.0
metres grading 62.96 g/t Au and 61.7 g/t Ag. Additionally, two other
mineralized zones, each 1.0 metre wide, were intersected deeper in the
drill hole and returned elevated gold values.
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LC11-01 74054 77.50 78.50 1.00 Cruz 1 90.14 54.9
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LC11-01 74056 78.50 79.50 1.00 Cruz 1 70.87 91.5
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LC11-01 74058 79.50 80.50 1.00 Cruz 1 27.87 38.6
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LC11-01 74089 106.50 107.50 1.00 New zone 0.57 3.9
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LC11-01 74193 237.00 238.00 1.00 New zone 0.23 0.5
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Drill hole LC11-02 (135/60) intercepted the Cruz 1 vein which returned 3.0
metres grading 12.01 g/t Au and 13.1 g/t Ag, including 1.2 metres of 29.80
g/t Au and 31.7 g/t Ag. The Cruz 2 mineralized zone returned 4.17 g/t Au
and 14.8 g/t Ag over 0.5 metres.
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LC11-02 74229 78.00 78.80 0.80 Cruz 1 0.06 0.5
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LC11-02 74231 78.80 79.50 0.70 Cruz 1 38.16 29.8
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LC11-02 74233 79.50 80.00 0.50 Cruz 1 18.1 34.3
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LC11-02 74235 80.00 81.00 1.00 Cruz 1 0.22 0.8
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LC11-02 74324 172.50 173.00 0.50 Cruz 2 4.17 14.8
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Drill hole LC11-03 intersected Cruz 1 vein which returned 2.5 metres of
14.96 g/t Au and 25.4 g/t Ag, including 1m of 36.53 g/t Au and 60.6 g/t Ag.
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LC11-03 74395 84.00 84.50 0.50 Cruz 1 0.95 1.3
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LC11-03 74396 84.50 85.00 0.50 Cruz 1 0.43 3.4
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LC11-03 74398 85.00 85.50 0.50 Cruz 1 62.57 103.2
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LC11-03 74400 85.50 86.00 0.50 Cruz 1 10.49 18.0
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LC11-03 74402 86.00 86.50 0.50 Cruz 1 0.34 1.2
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Drill hole LC11-04 (130/50) intersected 4 mineralized zones: New Zone
returned 1.0 metres grading 1.68 g/t Au and 1.6 g/t Ag; Cruz 1 Zone
returned 1.5 metres of 9.44 g/t Au and 17.3 g/t Ag, including 0.6 metres of
20.64 g/t Au and 37.0 g/t Ag; Intermediate Zone returned 2.5 metres of 1.02
g/t Au and 2.1 g/t Ag; Cruz 2 Zone returned 1.9 metres grading 3.24 g/t Au
and 6.0 g/t Ag.
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LC11-04 74527 30.00 31.00 1.00 New zone 1.68 1.6
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LC11-04 74646 167.50 168.10 0.60 Cruz 1 20.64 37.0
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LC11-04 74648 168.10 168.50 0.40 Cruz 1 1.03 2.5
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LC11-04 74649 168.50 169.00 0.50 Cruz 1 2.74 5.4
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LC11-04 74681 212.00 213.00 1.00 Intermediate zone 1.28 3.0
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LC11-04 74682 213.00 214.00 1.00 Intermediate zone 1.04 0.6
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LC11-04 74683 214.00 214.50 0.50 Intermediate zone 0.44 3.3
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LC11-04 74697 228.50 229.50 1.00 Cruz 2 2.88 3.7
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LC11-04 74699 229.50 229.90 0.40 Cruz 2 0.62 1.4
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LC11-04 74700 229.90 230.40 0.50 Cruz 2 6.05 14.3
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Drill hole LC11-05 intersected four mineralized zones. Cruz 1 Zone was
disrupted by a dyke, 0.8m wide, and the entire mineralized zone returned
5.0 metres grading 8.63 g/t Au and 3.5 g/t Ag, with the highest assay
results returned in footwall (schists) of 35.70 g/t Au and 2.0 g/t Ag. Cruz
2 Zone returned 1.0 metre of 6.49 g/t Au and 4.0 g/t Ag.
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LC11-05 74796 84.00 85.00 1.00 New zone 0.26 2.2
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LC11-05 74895 215.50 216.30 0.80 Cruz 1 0.57 2.5
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LC11-05 74897 216.30 217.10 0.80 Dyke 0.74 0.6
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LC11-05 74898 217.10 217.50 0.40 Cruz 1 3.5 1.4
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LC11-05 74900 217.50 218.50 1.00 Cruz 1 4.96 11.8
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LC11-05 74902 218.50 219.50 1.00 Cruz 1 0.05 0.5
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LC11-05 74903 219.50 220.50 1.00 Cruz 1 (schists) 35.70 2.0
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LC11-05 74926 258.00 259.00 1.00 Cruz 2 6.49 4.0
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LC11-05 74933 264.00 264.50 0.50 New zone 0.39 2.1
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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