Golden Reign Resources (GRR-V) April 5, '16 drilling is under way at wholly owned San Albino gold project located in Nueva Segovia, Nicaragua.
The company has initiated a three phase drill program intended to:
(1) provide sufficient material for the final stage of metallurgical test work, which includes Bond Work Index (WI) and Acid Rock Drainage (ARD) testing;
(2) provide a geotechnical analysis for open pit planning purposes; and
(3) finalize infrastructure location sites based upon condemnation drilling results.
The drill program will also seek to:
dot enhance the understanding of the resource and the geometry of the open-pittable resources; and dot provide the information required to refine and optimize the current mine plan.
Additional drilling to increase the overall size of the San Albino Gold Deposit, which remains open in both directions by strike and at depth, is planned for a future program. Definition drilling, based on a close-spaced grid pattern within the planned initial mining areas, will also be carried out.
Continued Advancement of Pre-Development Activities
The Company's technical team, together with Sonoran Resources, LLC ("Sonoran") the nominated Engineering, Procurement, Construction and Mining ("EPCM") contractor, continue to work on a pre-construction engineering study. The study includes an examination of options available to the Company in regards to mining techniques, as well as milling and processing alternatives. It is anticipated that Golden Reign will mine the San Albino Gold Deposit utilizing a conventional open-pit development, followed by combined open-pit and underground mining. The processing method for the San Albino Deposit will include industry standard gravity process followed by Carbon in Leach (CIL) gold recovery.
Acceleration of Warrant Expiry Date
On May 15, 2015, the Company announced a warrant incentive program (the "Program") to amend the exercise terms for up to 20,132,666 of its outstanding unlisted common share purchase warrants (the "Warrants").
Under the Program, the Company offered Warrant holders the opportunity to elect to pay $0.05 per Warrant in order to extend the expiry date of the Warrant to December 31, 2017 and reduce the exercise price to $0.05 per share for a period of 12 months or $0.10 per share thereafter until expiry of the term. In all, a total of 6,481,155 Warrants were amended for gross proceeds of $324,058. The remainder of the Warrants expired unexercised.
As the closing price of the Company's shares was $0.12 or greater for a period of 10 consecutive trading days the accelerated expiry clause of the Warrants has been triggered. Per TSX Venture Exchange Policy 4.1, the expiry period has been reduced to 30 days, and the new Warrant expiry date is April 29, 2016. The Warrant holders have been notified of the accelerated expiry date.
Potential proceeds of up to $324,058 may be realized from Warrant exercises. The Company is in a strong cash position, after the recently completed, oversubscribed non-brokered private placement which raised $3,116,640. Proceeds from the Warrants exercised and the private placement will be applied to costs related to the Company's wholly-owned Nicaraguan mineral properties, including the advancement of the San Albino Gold Deposit, and for general working capital.
Qualified Person
The technical information contained in this new release is based upon information prepared and approved by Messrs. Eugene Puritch, P.Eng., and Andrew Bradfield, P.Eng., of P&E Mining Consultants Inc., who are each an independent qualified person as defined by NI 43-101.
John M. Kowalchuk, P.Geo., a geologist and Company qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release on behalf of the Company.
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 prime objective is to bring its high-grade San Albino Gold Deposit into production quickly and efficiently, building cash flow to further advance a number of its other highly prospective exploration targets.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. 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 spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com. |
