Golden Reign Resources Ltd.: Las Conchitas Sampling Program Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/21/12 -- Golden Reign Resources Ltd. (TSX VENTURE: GRR) (the "Company" or "Golden Reign") is pleased to report additional sampling results from the Las Conchitas area of its flagship San Albino-Murra Gold Property (the "Property"), Nueva Segovia, Nicaragua.
A comprehensive, on-going regional prospecting and sampling program at the Property has identified several new prospects within a 4 square kilometre area of the Southern District, which borders the Company's newly acquired El Jicaro Concession. A number of old mine dumps and pits, float material and quartz vein structures were sampled (see below for full table of results and map).
The new prospects represent the southwest extension of mineralized structures, comprised of a system of parallel, sheeted quartz veins, first exposed by the Company's 2011 major trenching program. Golden Reign has already begun a 2012 trenching program to further delineate and test the new targets.
Three parallel, mineralized zones which strike northeast/southwest cover the sampled area: California Vein/Las Dolores Mine area; Los Centeno Mine/Bayacun Mine area; and, Vicente Mine area.
California Vein / Las Dolores Mine area
A 2.0 metre channel sample of a quartz vein returned an average grade of 69.33 g/t gold and 47.8 g/t silver, comprised of 1.0 metre of 137.35 g/t gold and 93.7 g/t silver and 1.0 metre of 1.30 g/t gold and 1.9 g/t silver. This vein appears to be an extension of the California Vein, which is situated 250 metres to the southwest and strikes 60 degrees to the northeast.
The California Vein was partially exploited via small mine pits. The California pit #1, measuring roughly 40 square metres at surface, returned 45.42 g/t gold and 74.0 g/t silver. Float samples of quartz material taken from two other pits, California pit #2 and California pit #3, returned grades ranging from 2.11 to 88.46 g/t gold and 2.4 to 127.5 g/t silver.
In addition, two nearby float samples of quartz material (Godoy #2) returned 13.81 g/t gold and 23.0 g/t silver and 16.33 g/t gold and 11.7 g/t silver, respectively.
Golden Reign is currently attempting to locate the collapsed entrance to the Las Dolores Mine which is reported to be along strike with the California Vein. A number of samples taken in the immediate vicinity from old mine pits returned grades ranging from 1.78 to 43.31 g/t gold and 3.3 to 42.3 g/t silver. Two mine dumps, Las Dolores Dump #1 and Las Dolores Dump #2, returned 16.61 g/t gold and 51.7 g/t silver and 66.40 g/t gold and 84.6 g/t silver, respectively. Both the Las Dolores Mine and California Vein appear to be a continuation of the same high-grade vein system.
Historical documents (1921) on the Las Dolores Mine report an average vein width of 5.5 feet (1.7 metres), strike length of 500 feet (155 metres) and developed depth of 200 feet (62 metres). The two best samples collected and reported in 1921 returned 5.1 feet (1.6 metres) grading 1.5 ounces (47 g/t) of gold and 5.5 feet (1.7 metres) grading 1.14 ounces (35 g/t) gold. Note: The information regarding the Las Dolores Mine is historical in nature and therefore not NI 43-101 compliant. It should not be relied upon.
Los Centeno Mine/ Bayacun Mine area
The Bayacun Mine was partially exploited by the Spanish in the late 1700's. A mine dump located near the Bayacun Mine adit returned 34.90 g/t gold and 42.4 g/t silver.
The Los Centeno Mine lies roughly 1,000 metres southwest of the Bayacun Mine along a 60 degrees strike. The strike zone encompasses a number of targets. In all, two mine dumps, seven mine pits and nine quartz veins were tested. Selected results are as follows:
-- Los Centeno Tunnel #5 mine dump - a float sample of mixed schist and
quartz vein material from the mine dump, which measures 15 metres x 6
metres x 10 metres depth, returned 10.09 g/t gold and 3.8 g/t silver
-- Los Centeno vein #1 - a 1.5 metre channel sample of a quartz vein,
located 50 metres from Los Centeno Tunnel #5, returned 9.59 g/t gold and
5.8 g/t silver
-- Roger pit #1 - float sample of quartz material assayed 10.26 g/t gold
and 11.6 g/t silver
-- Los Centeno pit #3 - a 1.0 metre channel sample of quartz vein material
returned 6.30 g/t gold and 5.3 g/t silver
-- Tacho pit #1 - a 1.0 metre channel sample of schist material assayed
9.82 g/t gold and 13.8 g/t silver
-- Tacho pit #4 - float sample of quartz material from an old mine pit
returned 38.87 g/t gold and 9.8 g/t silver
-- La Fortuna-Portillo vein - a 1.5 metre channel sample of quartz vein
material containing visible gold returned 12.93 g/t gold and 13.2 g/t
silver
-- Rosibel vein - a 1.5 metre channel sample of a quartz vein which
returned 11.54 g/t gold and 38.5 g/t silver
-- El Golfo vein #1 - located 130 metres from the collapsed Los Centeno
mine entrance a 1.0 metre channel sample of schist material containing
quartz veinlets returned 7.49 g/t gold and 5.4 g/t silver; and a 1.0
metre channel sample of a quartz vein returned 5.27 g/t gold and 13.2
g/t silver
-- El Golfo vein#2 - a 1.0 metre channel sample of a quartz vein, situated
130 metres from the collapsed Los Centeno mine entrance, returned 5.31
g/t gold and 3.8 g/t silver
-- Roger vein #2 - a 1.5 metre channel sample of mixed schist and quartz
vein material returned 13.58 g/t gold and less than 0.1 g/t silver
Vicente Mine / El Limon Mine area
The Vicente Mine area is located in very close proximity to the recently released Las Conchitas drill holes, LC 11-01 through LC 11-05, which returned 3.0 metres of 62.96 g/t gold and 61.7 g/t silver in the best drill intercept (see news release dated February 22, 2012).
Two float samples taken from two separate mine dumps returned 5.06 g/t gold and 17.2 g/t silver and 20.11 g/t gold and 44.1 g/t silver, respectively.
The Vicente Mine area is also situated within 250 metres of the El Limon Mine, where a quartz vein discovered fifteen metres from the mine entrance returned values of 121.0 g/t of gold and 98.2 g/t of silver over a 1.4 metre channel sample (see news release dated February 2, 2010).
The historic San Albino Mine area lies approximately 2.8 kilometres to the north. 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. The recently acquired El Jicaro Concession, which hosts the historic El Golfo Mine, lies immediately to the south. Both the San Albino and the El Golfo mines were developed and partially exploited in the early 1900's.
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Sample Au Ag
Prospect Name No. Description (g/t) (g/t)
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CALIFORNIA VEIN / LAS DOLORES MINE AREA
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Extension of 2.0 metre continuous channel 69.33 47.8
California Vein sample within quartz vein
containing galena, pyrite,
arsenopyrite and visible gold,
including:
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Extension of 72480 1.0 metre channel sample 137.35 93.7
California Vein
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Extension of 72481 1.0 metre channel sample 1.30 1.9
California Vein
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California pit #1 173058 Representative sample of mine dump 45.42 74.0
(40 square metres), quartz
material contains galena, pyrite,
arsenopyrite and Fe-oxides.
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California pit #2 72773 Float sample from old pit, quartz 33.12 35.1
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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California pit #2 72774 Float sample from old pit, quartz 2.11 2.4
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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California pit #3 72775 Float sample from old pit, quartz 88.46 127.5
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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California pit #3 72776 Float sample from old pit, quartz 42.54 27.0
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Godoy #2 66184 Float sample, quartz material 13.81 23.0
located 270 metres from Bayacun
Mine
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Godoy #2 66185 Float sample, quartz material 16.33 11.7
located 270 metres from Bayacun
Mine
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Siles pit #1 72609 Float sample from old pit, quartz 5.31 6.4
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Siles pit #2 72610 Float sample from old pit, quartz 4.63 3.4
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Siles pit #3 72611 Float sample from old pit, quartz 43.31 42.3
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Siles pit #4 72613 Float sample from old pit, quartz 1.80 3.3
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Siles pit #8 72617 Float sample from old pit, quartz 1.78 24.6
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Perez pit #1 72618 Float sample from old pit, quartz 9.30 20.7
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Siles pit #9 73502 Float sample from old pit, quartz 7.07 12.0
material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Las Dolores mine 73504 Float sample from old pit, quartz 16.61 51.7
dump #1 material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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Las Dolores mine 73505 Float sample from old pit, quartz 66.40 84.6
dump #2 material contains sulphides
(galena, pyrite and scorodite,
and Fe-oxides).
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LOS CENTENO MINE / BAYACUN MINE AREA
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Bayacun Tunnel - 173056 Representative sample of Mine 34.90 42.4
Mine dump Bayacun mine dump (40 square
metres), quartz material with
pyrite, arsenopyrite and Fe-
oxides
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Rosibel vein 173055 1.5 metre continuous channel 11.54 38.5
sample, quartz vein with
sulphides
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Andres veinlets 173057 1.0 metre continuous channel 8.21 25.0
zone sample, schists with quartz
veinlets 2 - 4 cm wide, rarely up
to 12 cm wide. Quartz veinlets
contain sulphides (galena,
pyrite, arsenopyrite, and Fe-
oxides.
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La Fortuna - 72479 Float sample, taken within an area 8.53 8.7
Portillo floats of many old workings/pits
zone #2
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Domingo Pit 173067 Float sample from Los Centeno Mine 0.58 9.5
pit (2 x 4 metres). Quartz
material with Fe-oxide.
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Tacho vein #5 66180 1.0 metre channel sample from 5.40 0.8
quartz vein located 300 metres
from El Limon mine.
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Tacho vein #5 66181 1.0 metre channel sample from 1.25 0.7
quartz vein located 300 metres
from El Limon mine.
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Anastacio vein #2 173059 0.6 metre channel sample from 1.02 0.3
quartz vein
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La Fortuna- 72477 1.5 metre channel sample, milky 12.93 13.2
Portillo vein quartz vein contains galena,
sphalerite, arensopyrite, and
visible gold.
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Tacho pit #3 76695 Float sample from old mine dump. 2.76 3.6
Quartz material contains
sulphides and Fe-oxides.
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Tacho pit #4 66190 Float sample, quartz material from 38.87 9.8
the top of the hill between Las
Conchitas area and El Jicaro
concession.
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Tacho pit #1 173068 1.0 metre channel sample, schist 9.82 13.8
with iron oxides and sulphides,
including galena and pyrite
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Moreno pit #1 73511 Float sample from old pit, milky 27.50 28.9
quartz material contains Fe-
oxides, no galena
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Moreno pit #2 73512 Float sample from old pit, quartz 4.23 4.1
material, no sulphides
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Los Centeno Pit #3 173071 1.0 metre channel, quartz vein 6.30 5.3
containing galena and pyrite
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Los Centeno vein 76691 1.5 metre channel sample from 9.59 5.8
#1 quartz vein situated 50 metres
from Los Centeno Tunnel #5
(possible extension). Quartz vein
contains sulphides and Fe-oxides.
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Roger Pit #1 173066 Float sample, quartz material 10.26 11.6
contains Fe-oxides and fractures
with schist inclusions.
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Los Centeno Tunnel 76692 Float sample from Los Centeno mine 10.09 3.8
#5 - Mine Dump dump (15 metres x 6 metres x 10
metres). Mixed quartz and schist
material.
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El Golfo vein #1 66191 1.0 metre channel sample from 5.27 10.7
quartz vein located 130 metres
from collapsed tunnel of Los
Centeno mine.
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El Golfo vein #1 66200 1.0 metre channel sample from 7.49 5.4
schist with quartz veinlets.
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El Golfo vein #2 76694 1.0 metre channel sample from 5.31 3.8
quartz vein located 130 metres
from Los Centeno Tunnel #5.
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Roger vein #2 66458 1.5 metre channel sample from 13.58 less
canyon of Candelaria creek. Mixed than
schist and quartz material. 0.1
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Moreno Tunnel Dump 73517 Float sample from old pit, milky 7.82 9.0
#1 quartz material contains
sulphides
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VICENTE MINE / EL LIMON MINE AREA
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Vicente Tunnel Mine 173001 Representative sample from mine 5.06 17.2
Dump dump, quartz material with
sulphides and Fe-oxide.
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Vicente Mine Dump 173054 Float from mine dump at an old pit 20.11 44.1
(3 metres x 5 metres x 3.5 metres
depth), quartz material contains
galena, pyrite, arsenopyrite and
Fe-oxides
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Note: (1) The table above includes samples which returned greater than 1.0
g/t gold and/or silver upon assay.
(2) At each mine dump, a number of samples are collected across the
entire area of the dump then combined and tested by analytical
assay to ensure that the results of the overall sample is
representative in nature.
To view the map associated with this press release, please click on the following link: http://media3.marketwire.com/docs/grr2.pdf
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