Golden Reign Resources Ltd.: Update on Expanded 2011 Definition Drill Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/24/11 -- Golden Reign Resources Ltd. (the 'Company' or 'Golden Reign') (TSX VENTURE: GRR) is pleased to provide a progress report on the ongoing 2011 definition drilling program at the San Albino Mine area, which represents approximately 2 square kilometres within its highly prospective 87 square kilometre San Albino-Murra Property (the 'Property'), Nicaragua.
Within the San Albino Mine area, multiple mineralized zones were intersected, including two primary targets - the San Albino and Arras mineralized zones. The area was first tested by drilling in 2010. A total of 1514.75 metres was cored in 14 drill holes, confirming the lateral and down-dip extension of both the San Albino and the Arras zone.
The 2011 definition drill program is designed to further extend the mineralized area outlined in 2010, refine the geological model, and obtain sufficient data to calculate a NI 43-101 compliant mineral resource for the San Albino Mine area.
After several very encouraging drill holes, the Company redesigned and significantly expanded the program - more than doubling the scope of the program. Initially planned to consist of 40 to 60 holes of definition drilling, totaling between 6,000 to 10,000 metres across a series of five fences of drill holes, the Company now anticipates that the program will comprise a minimum of 20,000 metres cored in approximately 140 drill holes across a series of six fences of drill holes. To date, over 14,500 metres have been cored. The Company now expects to complete drilling in March 2012 and the NI 43-101 compliant resource calculation in the first half of 2012.
The first fence of drill holes, now complete, was expanded to more than double its originally planned meterage of coring. After early drilling intersected significant thicknesses of the Arras mineralization beneath the San Albino zone, the program was expanded to test both zones and at least two other mineralized zones. The first fence of drill holes consists of 29 diamond drill holes and extended the strike length of the San Albino mineralized zone from 70 to 575 metres. Significantly, the Company was able to locate the southwest extension of mineralization, displaced by at least two cross-faults, and all zones remain open in both directions and at depth (see news releases dated September 15, 2011 and November 21, 2011 for results from the first fence of drill holes).
The second and third fences of drill holes are currently underway. Drill hole SA 11-41, testing for the northeast extension of the mineralized structures, is the first hole in which visible gold has been observed in the core. This hole has increased the strike length of the San Albino and Arras zones by a further 35 and 90 metres, respectively. The San Albino mineralized zone now strikes for approximately 600 metres. Arras, a high-grade near surface mineralized structure, now has a strike length of at least 540 metres and has been extended down-dip by drilling for 600 metres.
The Arras mineralized zone will be tested by at least five fences of drill holes, including three fences of holes collared below the San Albino zone. As a result of wide drill intercepts of the Arras zone, including 12.0 metres drilled in hole SA 11-18, the Company is continuing with two holes per drill site instead of a single hole to gain structural control.
All mineralized zones, including San Albino and Arras, remain open along strike in both directions and at depth.
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 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
