| Tue Feb 2, 2010 2010 Phase II Exploration Program Planned At San Albino-Murra Gold Property | |
| Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSX-V: GRR) continues exploration at its San Albino-Murra Gold Property (the "Property") located in Nuevo Segovia, Nicaragua, commencing its Phase II program. High-grade gold bearing quartz veins were, historically, the focus of exploration. However, the Company's 2009 Phase I exploration program outlined several new exploration targets which suggest that the Property has the potential to host an open-pittable, bulk tonnage gold deposit containing high-grade gold bearing structures. The Company has designed an extensive 2010 Exploration Program, which includes:
Historic San Albino Mine The first discovery of gold mineralization within the area, and perhaps within Nicaragua itself, was made by Spaniards in the immediate vicinity of San Albino around 1790. During the 1920's, limited mining activities were conducted before revolutionary activity halted mining and development. After that period, there were attempts to rehabilitate the mine and continue exploration in the area, but no mine production was reported. No recent sampling has been completed at the San Albino mine site; however, historical underground sampling across an 18.29 metre strike produced:
The Company plans to reopen the 400 level of the San Albino Mine where, historically, the highest gold values within the southern district were reported. Reopening the 400 level will allow for sampling of the vein. This will be followed by the clearing of two existing raises to the 300 level and, thereafter, by the possible reopening of the 300 level. Detailed underground sampling will be completed as the tunnels are reopened. Underground sampling will be conducted in combination with surface trenching to further define and test the mineralization prior to surface and underground diamond drilling. Situated 100 metres southwest of the San Albino Mine, is the El Jobo mine, which returned 16.06 g/t gold over 1.4 metres in quartz veins. The Company believes that the mineralization found at San Albino is an extension of that at El Jobo; however, further evaluation is required. Arras/San Lorenzo Recent sampling and mapping by Golden Reign has confirmed the continuity of the Arras vein system to include the San Lorenzo vein, for a total length of 900 metres. Further, sampling results obtained at the old San Lorenzo mine site and surface exposure of the mineralized structure within the Arras and San Lorenzo historical workings justify reopening the mine and performing systematic sampling. Historical sampling at Arras was validated by the Company's 2009 sampling program, with values of 10.0 to 20.0 g/t gold in quartz veins over 2.0 to 4.0 metres wide. At San Lorenzo, quartz veins returned grades ranging from 1.4 to 27.0 g/t gold from grab samples of quartz float. During 2010, the Company intends to confirm the continuation of high grade gold mineralization by trenching the Arras and San Lorenzo vein systems along approximately 1,500 metres of strike. Diamond drilling will follow upon receipt of positive trenching results. Las Conchitas Mines-San Pablo Mineralized Structural Zone The southern structural zone covers 1.5 kilometres, stretching from Las Conchitas (El Limon and Bayacun Mines) north-east to San Pablo. The Las Conchitas Mines located in the southern-most section of the San Albino District were discovered and exploited for gold and silver during colonial times via small artisanal mine workings, mining chimneys, and adits. Within this zone, mineralization is predominately controlled by 600 trending structures, producing veins up to eight metres true width. Where these veins are cut by 3100 structures, the rocks are shattered resulting in large mineralized stockwork zones roughly 50x50 metres in size. Veins that were mapped and sampled on surface were highly mineralized, returning elevated gold values. Sampling of the surrounding schist returned an additional 5.0 metres averaging 1.7 g/t gold. During recent sampling it was observed that gold and silver mineralization occurs within metasedimentary rocks containing quartz and iron oxides, controlled by mineralized faults and structures. The Phase I exploration program assay results correlate closely with those reported by the previous operator. Reopening of the old tunnels and systematic sampling is planned to begin early in the 2010 Phase II work program. One of the exploration targets will be to further expose a 4.0 metre wide quartz vein at San Pablo which returned value of 27.18 g/t gold, and to locate and sample a quartz vein discovered fifteen metres from the El Limon mine entrance which returned values of 121.0 g/t of gold and 98.2 g/t of silver over 1.4 metres. Qualified Person 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. 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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