VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 02/22/12 — Golden Reign Resources Ltd. (TSX VENTURE: GRR) (the „Company“ or „Golden Reign“) is extremely pleased to report results from the initial drill program at the Las Conchitas area of its flagship San Albino-Murra Gold Property (the „Property“), Nueva Segovia, Nicaragua.
The drill program was designed to follow up an extensive 2011 trenching program that outlined numerous drill targets and successfully exposed a system of sub-parallel, gold-bearing quartz veins ranging from 1 to 8 metres in true width. Trenching was oriented perpendicular to the mineralized zones, which have been traced at surface over a distance of two kilometres and remain open in at least two directions and at depth. In all, four newly discovered, highly prospective mineralized zones were identified.
In 2011, trench TR11-1 exposed a gold-bearing quartz vein, Cruz 1, which returned:
Initial drilling at Las Conchitas tested the down-dip extension of the Cruz 1 vein. Highlights from drilling include:
Las Conchitas hosts several significant, newly discovered gold bearing veins, with the Cruz 1 vein being the first to be tested by drilling. Golden Reign has confirmed a 400 metre down-dip extension of the Cruz 1 vein, a high-grade gold structure initially observed in trench TR 11-01. The first three drill holes, LC 11-01 through LC 11-03, were located approximately 150 metres from trench TR 11-01. LC 11-03 and LC 11-04 were located at a distance of approximately 250 metres from the first drill pad and 400 metres from trench TR 11-01. A cross section of the drill holes is shown here: .
The Cruz 1 vein was intersected in all five drill holes and demonstrated very good continuity of width and grade. The style of mineralization of the vein appears identical in each of the drill holes and is represented by bands of massive galena, sphalerite and arsenopyrite.
In addition, several other mineralized zones, similar in style of mineralization to the Cruz 1 vein, were intersected. The Cruz 2 zone, which was intersected in LC 11-02, LC 11-04 and LC 11-05, also demonstrates good continuity of width and grade:
In both LC 11-04 and LC 11-05, four separate zones of mineralization were encountered.
The Company plans to complete additional drilling at Las Conchitas during Summer 2012 to further test the Cruz vein and at least five other drill targets exposed by the 2011 trenching program.
The Las Conchitas area lies approximately 2.5 kilometres south of the historic San Albino Mine area where three drill rigs are currently completing a definition drill program which will result in the Company-s maiden resource calculation expected to be completed in the first half of 2012. It is also situated 0.5 kilometres north the recently acquired El Jicaro Concession which hosts the historic El Golfo Mine. Both the San Albino and the El Golfo mines were developed and partially exploited in the early 1900-s.
Qualified Person
John M. Kowalchuk, P.Geo., a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release.
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.
The Company-s land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company-s land package.
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 and SEDAR .
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.
Contacts: Golden Reign Resources Ltd. Kim Evans, CGA President & CEO 604-685-4655 or Toll Free: 1-888-685-4655 604-685-4675 (FAX)
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