Golden Reign Resources Ltd. - Butarni Property

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On March 13, 2007 the Russian company Status LLC was awarded the Butarni mining and exploration license. The license allows the permit holder to complete all forms of exploration, development and mining within the licensed area. The license is for 20 years, expiring April, 2027.

The license area covers an area of 9.3 km, and lies 310 km north of Magadan City, the capital of Magadan Province. Access to the property is by all-weather gravel road (Kolyma Highway). The area is supplied by electricity from a hydro power plant, located 55 km from the property, and the power lines pass within 6 km from the property.

Recent exploration, conducted by both Russian government agencies and a private Russian company during the period of 1992 to 2004, included 6,826 metres of trenching, 1,544 metres of diamond drilling and regional geological mapping and geochemical surveys.

The property is underlain by clastic sediments consisting of sandstone, siltstone and argillite. A small amount of carbonate rich sediments also occur and these have locally been metasomatized to form skarn. The sediments have been intruded by biotite granite stock with dimensions of approximately 3.0 km x 1.6 km. The sediments and intrusive are locally covered by Late Cretaceous andesitic and basaltic volcanics.

Five known mineralized quartz veins are outlined within the stock, with a length ranging from 700 metres to 1,500 metres. Mineral veining consists commonly of quartz plus arsenopyrite, pyrite, chalcopyrite, galena, bismuthinite and gold. Major veins are between 0.1 and 1.5 metres in width, 100 to 150 metres in length and are accompanied by a zone of parallel veinlets.

Historical grab and channel sampling returned gold values from 1 g/t up to 334.4 g/t, with average grades of 21.3 g/t Au from 45 grab samples and 29.6 g/t Au from 22 channel samples. Additionally, two trenches exposed nine mineralized veins ranging in width from 0.1 to 1.5 metres and in grade from 8 to 70 g/t Au. The average gold grade for all nine mineralized veins is 28 g/t Au.

The model envisioned for the Butarni property is one of a series of subparallel veins and veinlets which carry high-grade gold together with lower grade mineralization in altered granite, to provide reasonable gold mineralization over broad widths. During 1995-1996, two diamond drill holes intersected intervals of 14 metres grading 1.7 g/t Au and 12.9 metres averaging 1.2 g/t Au. The presence of sheeted veins and veinlets and generally minor wall rock alteration in a granite host rock, suggests an affinity to the Fort Knox style of mineralization.

The presence of gold mineralization in veinlets distributed within sediments indicates the potential for a sediment hosted bulk tonnage gold deposit. Quartz veins in the sediments contain up to 50 g/t Au and veins containing gold mineralization have been identified 300 metres from granite outcrops. These occurrences demonstrate that gold deposition is not restricted to the environment of the granite stock. Sediment hosted gold targets were not thoroughly examined during previous exploration programs and require further evaluation. A combination of the large tonnage of mineralized rock and historical gold grades suggests significant potential for discovery of an open-pittable gold deposit.

Photo Gallery

Butarni Property
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Butarni Property - Trench
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