Las Conchitas Sampling Program Results
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March 21, 2012 NEWS RELEASE - #12-06 TSX- V: GRR
LAS CONCHITAS SAMPLING PROGRAM RESULTS
Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSX-V: GRR) 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° 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° 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 <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.
| Sample | Au | Ag | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Prospect Name | Description | ||||||||
| No. | (g/t) | (g/t) | |||||||
| CALIFORNIA VEIN / LAS DOLORES MINE AREA | |||||||||
| 2.0 metre continuous channel sample within quartz vein containing | |||||||||
| Extension of California Vein | 69.33 | 47.8 | |||||||
| galena, pyrite, arsenopyrite and visible gold, including: | |||||||||
| Extension of California Vein | 72480 | 1.0 metre channel sample | 137.35 | 93.7 | |||||
| Extension of California Vein | 72481 | 1.0 metre channel sample | 1.30 | 1.9 | |||||
| California pit#1 | 173058 | Representative sample of mine dump (40 square metres), quartz material contains galena, pyrite, arsenopyrite and Fe-oxides. | 45.42 | 74.0 | |||||
| California pit# 2 | 72773 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 33.12 | 35.1 | |||||
| California pit# 2 | 72774 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 2.11 | 2.4 | |||||
| California pit # 3 | 72775 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 88.46 | 127.5 | |||||
| California pit # 3 | 72776 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 42.54 | 27.0 | |||||
| Godoy # 2 | 66184 | Float sample, quartz material located 270 metres from Bayacun Mine | 13.81 | 23.0 | |||||
| Godoy # 2 | 66185 | Float sample, quartz material located 270 metres from Bayacun Mine | 16.33 | 11.7 | |||||
| Siles pit #1 | 72609 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 5.31 | 6.4 | |||||
| Siles pit #2 | 72610 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 4.63 | 3.4 | |||||
| Siles pit #3 | 72611 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 43.31 | 42.3 | |||||
| Siles pit#4 | 72613 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 1.80 | 3.3 | |||||
| Siles pit#8 | 72617 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 1.78 | 24.6 | |||||
| Perez pit #1 | 72618 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 9.30 | 20.7 | |||||
| Siles pit #9 | 73502 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 7.07 | 12.0 | |||||
| Las Dolores mine dump #1 | 73504 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 16.61 | 51.7 | |||||
| Las Dolores mine dump #2 | 73505 | Float sample from old pit, quartz material contains sulphides (galena, pyrite and scorodite, and Fe-oxides). | 66.40 | 84.6 | |||||
| LOS CENTENO MINE / BAYACUN MINE AREA | |||||||||
| Bayacun Tunnel - Mine dump | 173056 | Representative sample of Mine Bayacun mine dump (40 square metres), quartz material with pyrite, arsenopyrite and Fe-oxides | 34.90 | 42.4 | |||||
| Rosibel vein | 173055 | 1.5 metre continuous channel sample, quartz vein with sulphides | 11.54 | 38.5 | |||||
| Andres veinlets zone | 173057 | 1.0 metre continuous channel 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. | 8.21 | 25.0 | |||||
| La Fortuna - Portillo floats zone #2 | 72479 | Float sample, taken within an area of many old workings/pits | 8.53 | 8.7 | |||||
| Domingo Pit | 173067 | Float sample from Los Centeno Mine pit (2 x 4 metres). Quartz material with Fe-oxide. | 0.58 | 9.5 | |||||
| Tacho vein #5 | 66180 | 1.0 metre channel sample from quartz vein located 300 metres from El Limon mine. | 5.40 | 0.8 | |||||
| Tacho vein #5 | 66181 | 1.0 metre channel sample from quartz vein located 300 metres from El Limon mine. | 1.25 | 0.7 | |||||
| Anastacio vein# 2 | 173059 | 0.6 metre channel sample from quartz vein | 1.02 | 0.3 | |||||
| La Fortuna-Portillo vein | 72477 | 1.5 metre channel sample, milky quartz vein contains galena, sphalerite, arensopyrite, and visible gold. | 12.93 | 13.2 | |||||
| Tacho pit #3 | 76695 | Float sample from old mine dump. Quartz material contains sulphides and Fe-oxides. | 2.76 | 3.6 | |||||
| Tacho pit #4 | 66190 | Float sample, quartz material from the top of the hill between Las Conchitas area and El Jicaro concession. | 38.87 | 9.8 |
| Sample | Au | Ag | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Prospect Name | Description | ||||||||
| No. | (g/t) | (g/t) | |||||||
| Tacho pit #1 | 173068 | 1.0 metre channel sample, schist with iron oxides and sulphides, including galena and pyrite | 9.82 | 13.8 | |||||
| Moreno pit #1 | 73511 | Float sample from old pit, milky quartz material contains Fe-oxides, no galena | 27.50 | 28.9 | |||||
| Moreno pit #2 | 73512 | Float sample from old pit, quartz material, no sulphides | 4.23 | 4.1 | |||||
| Los Centeno Pit #3 | 173071 | 1.0 metre channel, quartz vein containing galena and pyrite | 6.30 | 5.3 | |||||
| Los Centeno vein #1 | 76691 | 1.5 metre channel sample from quartz vein situated 50 metres from Los Centeno Tunnel #5 (possible extension). Quartz vein contains sulphides and Fe-oxides. | 9.59 | 5.8 | |||||
| Roger Pit #1 | 173066 | Float sample, quartz material contains Fe-oxides and fractures with schist inclusions. | 10.26 | 11.6 | |||||
| Los Centeno Tunnel #5 - Mine Dump | 76692 | Float sample from Los Centeno mine dump (15 metres x 6 metres x 10 metres). Mixed quartz and schist material. | 10.09 | 3.8 | |||||
| El Golfo vein #1 | 66191 | 1.0 metre channel sample from quartz vein located 130 metres from collapsed tunnel of Los Centeno mine. | 5.27 | 10.7 | |||||
| El Golfo vein #1 | 66200 | 1.0 metre channel sample from schist with quartz veinlets. | 7.49 | 5.4 | |||||
| El Golfo vein #2 | 76694 | 1.0 metre channel sample from quartz vein located 130 metres from Los Centeno Tunnel #5. | 5.31 | 3.8 | |||||
| Roger vein #2 | 66458 | 1.5 metre channel sample from canyon of Candelaria creek. Mixed schist and quartz material. | 13.58 | <0.1 | |||||
| Moreno Tunnel Dump #1 | 73517 | Float sample from old pit, milky quartz material contains sulphides | 7.82 | 9.0 | |||||
| VICENTE MINE / EL LIMON MINE AREA | |||||||||
| Vicente Tunnel Mine Dump | 173001 | Representative sample from mine dump, quartz material with sulphides and Fe-oxide. | 5.06 | 17.2 | |||||
| Vicente Mine Dump | 173054 | Float from mine dump at an old pit (3 metres x 5 metres x 3.5 metres depth), quartz material contains galena, pyrite, arsenopyrite and Fe- oxides | 20.11 | 44.1 |
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.
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”
Kim Evans, CGA President & 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 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.