| Tue Dec 22, 2009 Phase I Work Program Completed - Blackout Initiated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSX-V: GRR) is pleased to announce that a first phase exploration program at its San Albino-Murra Gold Property, Nicaragua, is now complete. The initial program focused on the southern, San Albino District which covers approximately 24 square kilometres of the 87 square kilometre property. Within this district, geological mapping, prospecting and surface channel sampling of mineralized outcrops was undertaken within an area of roughly 12 square kilometres. In all, a total of 803 samples were collected. Further assay results are pending. Structural mapping identified two broad north-east trending shear zones containing mineralized sheeted quartz veins. Visible gold was discovered in the quartz veins, as well as within the enclosing chlorite schists. The structurally disturbed shear zones can be traced for several kilometres in strike length, are over 100 metres wide and open in both directions along strike. Company geologists confirmed the continuation of the Arras mineralized structure to greater than 900 metres long and 50 metres wide, extending though the Lorenzo vein system to the Jicaro River. Arras is the faulted-off extension of the San Albino zone, which lies to the north. The San Albino District is comprised of two zones: San Albino-Arras-Lorenzo in the north; and Las Conchitas in the south. The northern zone includes the historic San Albino and Arras mines and incorporates an area to the north-east, across the Jicaro River, where several broad areas of sheeted quartz veins containing sulphide mineralization were observed. Individual sets of sheeted veins exceed 4 metres in thickness. Systematic sampling of this area is expected to be conducted in early 2010. The southern zone extends from Las Conchitas (El Limon and Bayacun mines) north-east and across the Jicaro River. At Arras, Condor Resources Plc ("Condor"), the previous operator, after a program of extensive trenching and reverse circulation drilling calculated a JORC compatible, inferred resource of 480,000 tonnes grading 5.1 g/t gold using a cut off grade of 0.5 g/t. Surface trenching was primarily completed within the top two metres where the rock appears to be extremely weathered, oxidized and leached. At present, the Company has not validated the resource estimate as a NI 43-101 compatible resource. It has, however, undertaken a sampling program intended to verify the results of trenching and reverse circulation drilling conducted by Condor. Preliminary results of the sampling program are as follows:
Sample 838858 was taken 5 metres above Condor trench SATR003 and 15 metres above Condor reverse circulation drill hole SARC 013. In a press release dated September 3, 2007, Condor reported results for SATR003 as an intersection of 24 metres grading 7.17 g/t gold, including 1 metre grading 47.5 g/t gold. In a separate news release dated May 18, 2007, Condor reported results from SARC013 as two intersections; the first intersection from 4.0 metres depth of 4 metres grading 28.6 g/t gold and the second intersection from 11 metres depth of 3.0 metres grading 10.89 g/t gold. Golden Reign's sampling supports the previous results by Condor. John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has reviewed the technical information contained in this news release. Golden Reign has issued a trading blackout period for all insiders, management and consultants of the Company prior to receipt of all assay results from its Nicaraguan project. The blackout period will remain in effect until 24 hours after the results are publicly disseminated. 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 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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