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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 20, 2012) – Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the “Company” or “Golden Reign”) is pleased to announce an initial mineral resource estimate from the first 15 months of drilling completed the San Albino Mine area of its San Albino-Murra Property (the “Property”), Nicaragua.
Highlights:
Only 0.6 square kilometres of the 2 square kilometre San Albino Mine area has been drill tested. All mineralized zones remain open at depth and along strike in both directions.
Golden Reign is very encouraged by this initial resource calculation, which provides a cornerstone from which it can grow, adding additional potential resources in the San Albino Mine area and from numerous regional targets currently being assessed within its much larger 138 square kilometre land package.
Since first optioning the Property on June 26, 2009, the Company has made rapid progress, drilling 15 out of the 36 months (41%) spent working on the project. In addition, Golden Reign has successfully:
Resources
| Cut-off grade (g/t AuEq) |
Classification |
Tonnes |
Au (g/t) |
Au ounces |
Ag (g/t) |
Ag ounces |
AuEq (g/t) |
AuEq ounces |
||
| Open-pittable | 0.5 | Indicated | 247,000 | 9.00 | 71,000 | 10.8 | 86,000 | 9.18 | 73,000 | |
| 0.5 | Inferred | 682,000 | 8.25 | 181,000 | 10.7 | 234,000 | 8.42 | 185,000 | ||
| Underground | 1.5 | Indicated | 101,000 | 6.59 | 21,000 | 9.7 | 31,000 | 6.76 | 22,000 | |
| 1.5 | Inferred | 2,689,000 | 7.00 | 605,000 | 10.6 | 912,000 | 7.17 | 620,000 |
| Mineral Resource Estimate Notes and Parameters: |
| 1. | Mineral Resource estimates are based upon an October 31, 2012 two year trailing average gold price of US$1,592 per ounce, a 95% recovery rate, bulk density of 2.8 t/m3, open-pit mining costs of US$3 per tonne, pit slopes of 45 degrees, underground mining costs of US$48 per tonne, milling costs of US$20 per tonne, and general and administrative costs of US$5 per tonne; | ||
| 2. | Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves; | ||
| 3. | The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although the Company is not aware of any such issues; | ||
| 4. | The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. | ||
| 5. | Gold Equivalent was calculated on the basis of 1 gram gold = 60 grams silver. |
The San Albino resource model consists of three flatly dipping, high grade, narrow vein systems over a strike length of 850 metres, down dip extension of 925 metres, with a minimum true width of one metre and average true width of 2.6 metres. Grade capping varied from no capping to 100 g/t depending on the vein system. All silver assays were capped at 100 g/t. Inverse distance cubed grade interpolation was on 2m x 2m x 6m blocks utilizing Gemcom. 166 of 201 drill holes and trenches on the Property were utilized in the resource estimate calculation.
The resource estimate was completed by P & E Mining Consultants Inc. (“P&E”) of Brampton, Ontario, Canada. P&E prepared a mineral resource estimate for the San Albino Mine area in accordance with the Canadian Securities Administrators (“CSA”) National Instrument 43-101 (“NI 43-101”) and resources have been estimated using the Canadian institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The Mineral Resource estimates in this news release were prepared by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo. of P&E, each an independent qualified person, as defined by NI 43-101. Mr. Puritch has reviewed and approved the contents of this news release.
An independent NI 43-101 compliant technical report relating to the initial Mineral Resource estimate for the San Albino Mine area will be filed on SEDAR within 45 days of this news release.
Quality Assurance
The Company’s rigorous QA/QC program utilizes best industry practices, involving insertion of appropriate standards, blanks and field duplicates. All drill holes were 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 were then transferred to Inspectorate’s analytical laboratory in Richmond, British Columbia, Canada. Duplicate samples were also sent to Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, Canada, for comparative analysis. Gold and silver analyses were carried out by fire assay. In addition, for samples assaying greater than 1 g/t gold, check assays were also carried out by the metallic screen method to verify high-grade sample assays obtained by fire assay and to minimize gold nugget effect.
Golden Reign’s Qualified Person
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, 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 and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua. Both properties are held 100% by the Company, with no NSR (“Net Smelter Royalty”) other than that payable to the Nicaraguan government pursuant to existing mining laws.
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.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
