Golden Reign Extends High-Grade Mineralization of CRUZ Grande Zone at Las Conchitas
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January 25, 2018
NEWS RELEASE - #18-02
TSX- V: GRR
GOLDEN REIGN EXTENDS HIGH-GRADE MINERALIZATION OF CRUZ GRANDE ZONE AT LAS
CONCHITAS
Golden Reign Resources Ltd. (TSX-V: GRR) (the “Company” or “Golden Reign”) announce s results from a recently
completed trenching program at the Cruz Grande zone within the Las Conchitas area, of its wholly-owned San Albino-
Murra Property (the “Property”) in Nueva Segovia, Nicaragua.
The 2017 trenching program within the Cruz Grande zone has achieved its objectives and confirmed the extension and
continuity of the high-grade gold mineralization. The Cruz Grande zone represents the fifth tested mineralized zone where
trenching has generated additional near surface, drill ready targets within the Las Conchitas area. Golden Reign’s most
recent work suggests that some of these may connect to form a more robust continuous zone of mineralization.
Highlights of Cruz Grande Trench Program:
• Exposed significant gold mineralization over more than 250 metres of strike length
• Confirmed orientation, size and continuity of the mineralized structures
• Indicated continuity of good grade values over reasonable widths
• Delineated additional drill targets
• Mineralization open in both direction along strike and down dip
• No previous drilling has been completed, but down dip mineralization was confirmed by the historic
underground mining of the prospect
Originally discovered in 2012 during sampling of surface exposures of the Cruz Grande zone in trench SAM12-TR 11,
the zone returned values in a vertical sample of 1.5 m of 7.15 g/t Au and 29.7 g/t Ag and values along dip of 7.0 m of
12.14 g/t Au and 28.4 g/t Ag (see news release from February 25, 2013).
In order to expose the trend and orientation of the mineralization to obtain a better understanding of the g eometry of the
shallow dipping mineralized structure, the Company excavated an exploration pit. Highlights of sampling within the pit
are as follows (see attached maps):
● EXP17-SAM12-TR-11 1.0 m of 12.58 g/t gold and 11.2 g/t silver (vertical)
● EXP17-SAM12-TR-11 1.8 m of 4.04 g/t gold and 12.8 g/t silver (vertical)
● EXP17-SAM12-TR-11 1.7 m of 5.46 g/t gold and 5.6 g/t silver (vertical)
● EXP17-SAM12-TR-11 0.7 m of 9.44 g/t gold and 7.0 g/t silver (vertical)
Prior observations and more recent petrological stud ies of samples from Las Conchitas area suggest that gold
mineralization is closely associated with zones of strained quartz and reworking of existing quartz veins. Gold is mainly
free in or along limonitic fractures or vo ids/vugs, associated with or attached to limonite (i.e. closely associated with
sulfides or their oxidized equivalents, but not within the sulfides). The Company has completed systematic sampling across
mineralized structures, including along strike, in an effort to clearly determine the character of the gold mineralization.
The highlights of sampling across the mineralized zone are as follows:
● EXP17-SAM12-TR-11 2.4 m of 17.03 g/t gold and 13.1 g/t silver (along strike)
● EXP17-SAM12-TR-11 4.4 m of 3.50 g/t gold and 25.0 g/t silver (along strike)
The 2017 trenching program at the Cruz Grande zone exposed high -grade gold mineralization and demonstrates the
potential to extend the zone for more than 250 metres in strike length. Two trenches were designed to test the southwest
extension of the Cruz Grande zone. Trench SAM17-TR-17 returned values of:
• 8.6 m of 7.33 g/t gold and 8.5 g/t silver (along dip)
• 2.6 m of 5.54 g/t gold and 20.4 g/t silver (vertical)
• 2.6 m of 5.22 g/t gold and 9.3 g/t silver (vertical)
Sampling of trench SAM17-TR-19 returned values of:
• 11.8 m of 2.74 g/t gold and 1.6 g/t silver (along dip)
• 0.9 m of 9.96 g/t gold and 4.9 g/t silver (vertical)
One trench and an exploration pit, designed to test the continuity of the mineralized zone to the northeast, returned values
of:
● SAM17-TR-18 1.5 m of 13.20 g/t gold and 6.5 g/t silver (vertical)
● SAM17-CATA23 (Exp Pit) 1.0 m of 2.55 g/t gold and 2.4 g/t silver (along dip)
Detailed sampling of the country rock (phyllites) have identified high -grade gold values contiguous to the vein
mineralization (footwall and/or hanging wall) and confirmed that gold is not restricted solely to the quartz veins but is also
distributed in narrow quartz veinlets (stringer mineralization) within the host rock. Highlights of the mineralized country
rock horizon are as follows:
● EXP17-SAM12-TR-11 1.0 m of 7.90 g/t gold and 7.2 g/t silver (vertical)
● SAM17-TR17 1.0 m of 33.20 g/t gold and 21.2 g/t silver (along dip)
● SAM17-TR17 1.2 m of 13.20 g/t gold and 8.5 g/t silver (vertical)
● SAM17-Cata 23 1.0 m of 2.55 g/t gold and 2.4 g/t silver (along dip)
● SAM17-TR18 1.2 m of 1.65 g/t gold and 11.6 g/t silver (vertical)
● SAM17-TR19 0.9 m of 9.96 g/t gold and 4.9 g/t silver (vertical)
● SAM17-TR19 1.5 m of 3.30 g/t gold and 1.7 g/t silver (vertical)
Trench SAM17-TR13 and an exploration pit, SAM17-CATA 24, were excavated over shallow historical workings but
sampling returned gold values below a cut-off grade of 1.0 g/t of gold.
For a complete list of trenching results, please see the table titled “2017 Las Conchitas Trenching Results” available on
our website at www.goldenreignresources.com.
The southern Las Conchitas area hosts a number of high priority, clustered gold targets. Las Conchitas is situated
immediately south of the San Albino Gold Deposit at the southwest end of Corona de Oro Gold Belt which, at 3 kilometres
wide and 20 kilometres long, spans the Company’s landholdings.
The mineralized intervals shown above utilize a 1.0 g/t gold cut-off grade. The results presented above are preliminary in
nature. There has been insufficient exploration to date to estimate a “Mineral Resource”, as such term is defined in National
Instrument 43-101 “Standards of Disclosure for Mineral Projects”. There is no certainty that further exploration will result
in the identification of Mineral Resources.
QA&QC Procedures
The Company follows industry standards in its QA&QC procedures. A certified standard sample, or a blank or a field
duplicate sample is inserted every 10 samples before the set of samples are sent to the Laboratory. This procedure is
applied to all drill and trench samples.
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. Mr. Kowalchuk is a senior geologist consulting to the Company.
On behalf of the Board,
“Kevin Bullock”
Kevin Bullock, P.Eng.
CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX -V: 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 prime objective is to bring its San Albino Gold Deposit into production quickly and efficiently, building cash flow to
further advance a number of its other prospective exploration targets.
The Company’s land package comprises 13,771 hectares (138 km2) of prospective ground for gold and silver mineralization. Hundreds
of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres
long and is spanned by the Company’s land package.
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 considered “forward-looking information” within
the meaning of applicable securities laws. Forward-looking information is based on certain expectations and assumptions, including
the assumption that the Company’s exploration program will be successfully completed, and are subject to known and unknown risks
and uncertainties. Such forward-looking information is 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 information, including, without limitation, the risk that
satisfactory exploration results will not be obtained, the risk that exploration results will not translate into the discover y of an
economically viable deposit, risks and uncertainties relating to politica l 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.
Neither the TSX Venture Exchange nor its Regula tion Services Provider (as that term is defined in the policies of the TSX Vent ure
Exchange) accepts responsibility for the adequacy or accuracy of this release.