| Wed Sep 30, 2009 San Albino-Murra Gold Property, Nicaragua - Update | |
| Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSXV: GRR) is pleased to announce that it has received final acceptance from the TSX Venture Exchange with respect to its option agreement on the San Albino-Murra Gold Property (the "Property"), located in the Department of Nueva Segovia, northwestern Nicaragua (see news release dated June 29, 2009). A NI 43-101 compliant technical report on the San Albino-Murra Gold Property, dated September 23, 2009, prepared by B.J. Price Geological Consultants Inc. is available on SEDAR (www.sedar.com) and the Company's website (www.goldenreignresouces.com). The Company is in an advanced stage of planning for the commencement of a Phase I work program, in which it intends to rehabilitate the San Albino mine, reopening and clearing the caved levels 300 and 400. An environmental impact study and permitting, is in place and allows for drilling, trenching and rehabilitation of the San Albino mine and other old workings. The San Albino-Murra Property hosts the historic San Albino and Aguja de Arras gold mines and contains numerous showings. Under the stewardship of Mr. Charles Butters, the San Albino mine recorded an average daily production of 10 tons at 31 g/t gold during a brief interval before revolutionary activity halted mining. Charles Butters, a renowned metallurgist who pioneered the cyanide process for mineral separation and opened several gold mines worldwide, held the property until 1927, when it was seized by Augusto Sandino, leader of the Nicaraguan revolution. Over the intervening 80+ years, the mine has never been reopened for production. A historical resource estimate, which is non NI 43-101 compliant and, thus, should not be relied upon, for the San Albino mine was prepared by Mr. Rodgers Peale in 1948. Based upon existing data and maps, Peale calculated a gold resource of 80,486 tons valued at US$18.60 per ton for US$1,476,152, at a time when the price of gold was approximately US$35 per ounce, equivalent to approximately 42,000 ounces. Aguja de Arras ("Arras"), situated approximately 300 metres south of San Albino mine, was the primary focus of Condor Resources plc ("Condor"), an AIM listed company that held the Property from 2006 to early 2009. A high-grade gold weathered mineralized zone, some 230 metres long and open along strike in both directions, has returned excellent gold intercepts, including 24 metres at 7.17 g/t gold. The highest grades, of up to 20 g/t gold over 3 metres, are encountered in the footwall and hanging wall in alteration zones adjacent to the main quartz veins. In 2008, Geosure Geological Consultants of Australia completed an independent geological report on Arras. A potential open-pittable resource estimate of 76,000 to 78,000 ounces of contained gold was calculated utilizing a cut-off grade of 0.5 to 1.0 g/t gold on 390,000 to 480,000 tonnes grading 5.1 to 6.1 g/t gold (M.Montgomery, B.A., Sc.M.Aus.Imm). Also at Arras, a small historical, non NI 43-101 compliant underground resource was calculated by Rodgers Peale in 1948. As part of its planning and data compilation, Golden Reign has obtained a copy of the papers from the Thayer Lindsley Collection held by the University of Wyoming and a large amount of data, including mine plans, from the archived files of Charles H. Janin held at the Huntington Library in San Marino, California, one of the largest and most complete research libraries in the United States. Thayler Lindsley, a member of the Canadian Mining Hall of Fame (www.halloffame.mining.ca), has been described as the greatest mine finder of all time. He founded Falconbridge Ltd., Ventures Ltd. and Sherritt Gordon Mines Limited. Charles Janin, a mining engineer, was consultant to Charles Butters in 1922 and held the property briefly in 1934. On behalf of the Board, "Kim Evans" Kim Evans, CGA Director & CFO About Golden Reign: Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in the business of exploring and developing the precious metals and mineral assets in Nicaragua. Under the terms of the option agreement, the Company may acquire an 80% interest in the Property over a four year period by making cash payments totalling US$450,000, issuing 4,000,000 common shares from treasury and incurring aggregate exploration expenditures of US$5,000,000. The San Albino-Murra Property is held by a private Nicaraguan company, Nicoz Resources S.A. ("Nicoz"), under a 25 year mining license expiring February 3, 2027 and covers an area of 8,700 hectares (87 sq km). 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. | |
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