Golden Reign Resources (GRR-V)
www.goldenreignresources.com
53.5 million o/s
$5 million cash
Golden Reign rehashes San Albino trench results.
Sept 17, 2012 - News Release.
Golden Reign Resources Ltd. has provided an update on the 2012/2013 regional trenching program currently under way within the Southern district of its flagship 87-square-kilometre San Albino-Murra property, Nueva Segovia, Nicaragua.
A total of nine of the 29 highly mineralized structures selected for further testing during the 2012/2013 regional trenching program are situated in the Southern district. All of the targets, with the exception of one -- target No. 21 -- are located to the south of the two-square-kilometre San Albino mine area where the company spent the last year drilling and for which a maiden resource calculation is currently being compiled. Prior exploration, including the 2011 trenching program, has exposed multiple systems of parallel, highly mineralized vein structures throughout the Southern district -- similar in nature to those discovered and tested at the San Albino mine area.
The trenching targets are located within an area representing approximately 10 square kilometres of the total 24 square kilometres comprising the Southern district. A description of targets No. 21 to 29, on a non-prioritized basis, follows:
Target No. 21 -- Turrango vein (trenching pending)
The Turrango vein is an outlier target, the only prospect situated to the east of the Jicaro River being tested during the 2012/2013 trenching program. Prior extensive underground sampling of tunnel No. 3 identified a near-surface vein structure that returned elevated gold and silver values across all 19 samples, including the following high-grade results:
- One metre of 10.01 grams per tonne (g/t) gold and 59.3 g/t silver;
- 0.9 metre of 4.45 g/t gold and 47.9 g/t silver;
- One metre of 11.44 g/t gold and 1.9 g/t silver;
- One metre of 3.44 g/t gold and 29.2 g/t silver.
Target No. 22 -- San Pablo area (trenching in progress)
Situated approximately one kilometre south of the San Albino mine area, the San Pablo area is one of the primary drill targets for the next drilling campaign. Outlined by the company's highly successful 2011 trenching program, the San Pablo area hosts a system of parallel, highly mineralized vein structures that are open laterally in both directions with a strike distance exceeding 700 metres. Highlights from the 2011 trenching program include:
- Trench 1: one metre averaging 6.68 g/t gold and 5.2 g/t silver;
- Trench 2: 8.5 metres averaging 8.94 g/t gold and 5.2 g/t silver including 4.5 metres averaging 15.26 g/t gold and 8.6 g/t silver;
- Trench 3: 6.5 metres averaging 1.80 g/t gold and minor silver including one metre averaging 6.54 g/t gold and 11.6 g/t silver;
- Trench 4: 16.0 metres averaging 6.25 g/t gold, 5.1 g/t silver including nine metres averaging 6.51 g/t gold with minor silver and three metres averaging 13.14 g/t gold and 5.9 g/t silver;
- Trench 5: three metres averaging 9.19 g/t gold with minor silver.
Underground channel samples at Mina Francisco, a partially collapsed adit, returned values ranging from anomalous gold and silver up to 20.18 g/t gold and 34.7 g/t silver.
Target No. 23 -- intermediate area (San Pablo/Las Conchita) (trenching pending)
2011 trenching
- Trench 1: 8.2 metres averaging 20.64 g/t gold and 26.87 g/t silver including 5.2 metres averaging 28.69 g/t gold and 38.8 g/t silver;
- Trench 2: eight metres averaging 4.37 g/t gold with minor silver including three metres averaging 8.83 g/t gold with minor silver, also five metres averaging 9.44 g/t gold and 9.9 g/t silver and one metre averaging 32.87 g/t gold and 51.5 g/t silver;
- Trench 3: 12.8 metres averaging 16.05 g/t gold and 9.9 g/t silver including three metres averaging 40.97 g/t gold and 23.7 g/t silver and 1.8 metres averaging 42.33 g/t gold and 15.9 g/t silver;
- Trench 4: one metre averaging 4.52 g/t gold, minor silver and two metres averaging 3.11 g/t gold and 9.1 g/t silver.
Target No. 24 -- Rio Jicaro area (trenching pending)
Located to the northeast of the Las Conchitas area, the Rio Jicaro area likely represents an extension of the highly mineralized structures outlined at Las Conchitas. Highlights from the 2011 trenching program are:
- Trench 1: eight metres averaging 7.31 g/t gold and 5.9 g/t silver including four metres averaging 11.91 g/t gold and 9.6 g/t silver including two metres averaging 17.31 g/t gold and 12.5 g/t silver;
- Trench 4: two metres averaging 19.05 g/t gold and 24.1 g/t silver.
Target No. 25 -- Las Conchitas area (trenching pending)
The Las Conchitas area hosts several structurally controlled highly mineralized zones containing a system of parallel quartz veins ranging from one to eight metres in true width. These veins have been traced over a distance of two kilometres, remaining open in at least two directions.
2011 trenching highlights
- Trench 1: exposed a gold-bearing quartz vein, Cruz 1, which returned:
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- Two metres averaging 26.27 g/t gold and 17.4 g/t silver;
- Five metres averaging 5.21 g/t gold and 7.3 g/t silver;
- 2.6 metres averaging 3.70 g/t gold and 5.9 g/t silver.
The Cruz 1 vein was tested by drilling in October, 2011, with the best result in DDH LC 11-01 of three metres of 62.96 g/t gold and 61.7 g/t silver.
- Trench 5: two metres averaging 18.58 g/t gold and 14.1 g/t silver;
- Trench 10: 5.3 metres averaging 48.28 g/t gold and 20.9 g/t silver including two metres averaging 118.91 g/t gold and 40.2 g/t silver;
- Trench 16: five metres averaging 9.88 g/t gold and 9.6 g/t silver including three metres averaging 14.44 g/t gold and 13.1 g/t silver;
- Trench 18: 3.5 metres averaging 6.91 g/t gold and 16.3 g/t silver including 1.5 metres averaging 12.69 g/t gold and 32.3 g/t silver;
- Trench 21: 14.0 metres averaging 5.89 g/t gold and 11.8 g/t silver including four metres averaging 8.46 g/t gold and 21.2 g/t silver and seven metres averaging 6.11 g/t gold and 9.8 g/t silver;
- Trench 22: five metres averaging 14.78 g/t gold and 21.1 g/t silver including two metres averaging 16.95 g/t gold and 24.9 g/t silver;
- Trench 23: four metres averaging 5.35 g/t gold and 5.1 g/t silver including two metres averaging 8.80 g/t gold and 8.1 g/t silver;
- Trench 26: 18.0 metres (schists with quartz veinlets) averaging 2.29 g/t gold and four g/t silver including one metre averaging 13.13 g/t gold and 15.6 g/t silver;
- Trench 30: one metre averaging 18.59 g/t gold and 4.4 g/t silver.
Target No. 26 -- Mina Dolores (2012 trenching completed)
One trench was completed, to a depth of approximately 1.5 metres, as part of the 2012/2013 trenching program (see news release dated June 12, 2012), with the following results:
- SAMTR-12-04: 12.6 metres averaging 6.56 g/t gold and 12.5 g/t silver including 4.6 metres averaging 16.02 g/t gold and 29.6 g/t silver and one metre averaging 6.62 g/t gold and 12.4 g/t silver.
In addition, seven samples collected along the strike of the quartz vein totalling 8.8 metres returned an average of 1.26 metres grading 31.21 g/t gold and 40.3 g/t silver.
One of three highly prospective areas located in the southwest corner of the flagship property, Mina Dolores is a near-surface high-grade vein prospect that was selected for further testing by trenching based upon earlier results, including:
- The sampling of old pits located in close proximity to the mine which returned very high-grade gold and silver ranging from 1.78 g/t to 43.31 g/t gold and 3.3 to 42.3 g/t silver.
- Las Dolores mine dump No. 1 returned 16.61 g/t gold and 51.7 g/t silver.
- Las Dolores mine dump No. 2 returned 66.40 g/t gold and 84.6 g/t silver.
- Two thousand eleven trenching results (TR 21) returned 14.0 metres of 5.89 g/t gold and 11.8 g/t silver including four metres of 8.46 g/t gold and 21.2 g/t silver and seven metres of 6.11 g/t gold and 9.8 g/t silver.
Historic documents (1921) on Mina Dolores 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.
The information regarding Mina Dolores is historic in nature and therefore not National Instrument 43-101 compliant. It should not be relied upon.
Target No. 27 -- California vein (2012 trenching completed)
Three trenches were completed, to a depth of approximately 1.5 metres, as part of the 2012/2013 trenching program (see news release dated June 12, 2012), with the following results:
- SAMTR-12-01: four metres averaging 21.00 g/t gold and 21.9 g/t silver and two metres averaging 14.72 g/t gold and 21.6 g/t silver and four metres averaging 15.36 g/t gold and 24.0 g/t silver including one metre averaging 61.06 g/t gold and 94.0 g/t silver;
- SAMTR-12-02: 3.5 metres averaging 42.64 g/t gold and 11.7 g/t silver and four metres averaging 9.49 g/t gold and 3.3 g/t silver and two metres averaging 7.27 g/t gold and 5.5 g/t silver;
- SAMTR-12-03: one metre averaging 13.08 g/t gold and 4.9 g/t silver.
The California vein represents the extension of structures first identified by trenching in 2011 and further outlined by a 2012 sampling program. Select results from the sampling program include:
- A two-metre channel sample of a quartz vein returned an average grade of 69.33 g/t gold and 47.8 g/t silver, comprising one metre of 137.35 g/t gold and 93.7 g/t silver and one 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 testing of California pit No. 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 No. 2 and California pit No. 3, returned grades ranging from 2.11 to 88.46 g/t gold and 2.4 to 127.5 g/t silver.
- The testing of two nearby float samples of quartz material (Godoy No. 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.
Target No. 28 -- La Fortuna vein -- El Portillo (trenching pending)
The La Fortuna vein/El Portillo is possibly the southwest extension of the Las Conchitas mineralized structures which were exposed by trenching during 2011 (see No. 25 above). Sampling of the vein returned 1.5 metres of 12.93 g/t gold and 13.2 g/t silver. Sampling of nearby mine dumps returned: 8.53 g/t gold and 8.6 g/t silver, as well as 57.68 g/t gold and 31.8 g/t silver.
Target No. 29 -- Los Centeno prospect (trenching pending)
The second of three highly prospective areas (see No. 26 -- Mina Dolores, above) located in the southwest corner of the flagship property. The Los Centeno prospect borders the company's El Jicaro concession to the south. In all, two mine dumps, seven mine pits and nine quartz veins have been tested to date (see news release dated March 21, 2012). Selected results are as follows:
- Los Centeno tunnel No. 5 mine dump -- a float sample of mixed schist and quartz vein material from the mine dump, which measures 15 metres by six metres by 10 metres in depth, returning 10.09 g/t gold and 3.8 g/t silver;
- Los Centeno vein No. 1 -- a 1.5-metre channel sample of a quartz vein, located 50 metres from Los Centeno tunnel No. 5, returning 9.59 g/t gold and 5.8 g/t silver;
- Roger pit No. 1 -- float sample of quartz material assaying 10.26 g/t gold and 11.6 g/t silver;
- Los Centeno pit No. 3 -- a one-metre channel sample of quartz vein material returning 6.30 g/t gold and 5.3 g/t silver;
- Tacho pit No. 1 -- a one-metre channel sample of schist material assaying 9.82 g/t gold and 13.8 g/t silver;
- Tacho pit No. 4 -- float sample of quartz material from an old mine pit returning 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 returning 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 No. 1 -- located 130 metres from the collapsed Los Centeno mine entrance a one-metre channel sample of schist material containing quartz veinlets returning 7.49 g/t gold and 5.4 g/t silver; and a one-metre channel sample of a quartz vein returning 5.27 g/t gold and 13.2 g/t silver;
- El Golfo vein No. 2 -- a one-metre channel sample of a quartz vein, situated 130 metres from the collapsed Los Centeno mine entrance, returning 5.31 g/t gold and 3.8 g/t silver;
- Roger vein No. 2 -- a 1.5-metre channel sample of mixed schist and quartz vein material returning 13.58 g/t gold and less than 0.1 g/t silver.
The extensive 2012/2013 program will comprise an aggregate 4.5 kilometres of trenching across approximately 150 trenches, spanning 18 kilometres of Corona de Oro gold belt. The program proposes to:
- Target an initial 29 of the over 120 previously identified highly mineralized gold structures;
- Test structures that yielded assays of five g/t gold or better;
- Expose and extend the strike length of the targeted mineralized structures;
- Expose the width and dip of targeted mineralized structures;
- Confirm the grade of targeted mineralized structures;
- Aid in the prioritization of drill-ready targets.
All targets are situated within the Corona de Oro gold belt. A structural corridor approximately three kilometres wide by 25 kilometres long that stretches from the El Jicaro concession in the south to the northeastern boundaries of the San Albino-Murra property, the Corona de Oro gold belt hosts over 170 quartz vein structures, 112 adits, 148 mine dumps and 354 exploration pits.
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