Golden Reign Completes Early Earn-In of 80% Interest in Flagship San Albino-Murra Gold Property, Nicaragua
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/07/12 -- Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE: GRR) is extremely pleased to announce that it has earned an undivided 80% interest in the San Albino-Murra Gold Property (the "Property"), Nueva Segovia, Nicaragua.
The 80% earned interest (the "Earned Interest") has been completed approximately 1.5 years ahead of schedule and marks a very significant milestone for the Company.
The Company entered into a four-year property option agreement in June 2009 and commenced exploration activities on the San Albino-Murra Property in November 2009. Pursuant to the terms of the property option agreement, consideration paid for the Earned Interest consisted of:
-- aggregate cash payments totalling USD$450,000
-- the issuance of 4,000,000 common shares of Golden Reign
-- exploration expenditures of USD$5,000,000.
The vendor has a 60-day period in which to decide to either to (a) to retain a 20% interest and continue under a participating joint-venture agreement or (b) convert the 20% working interest into a 3% net smelter royalty (NSR). Should the vendor convert its working interest into the NSR, the Company has the right to purchase 1.5% for USD$1,850,000 and the right of first refusal on the remaining 1.5%.
Corona de Oro Gold Belt
It is now apparent that the gold mineralization established by the Company represents a considerable gold belt - the Corona de Oro Gold Belt - that lies along a southwest to northeast axis, spanning the entirety of the Property. It is approximately 3 kilometres wide and over 20 kilometres long. Originally discovered by drilling, trenching, geological mapping and geochemical survey, the Corona de Oro Gold Belt is host to hundreds of historical mines and workings.
To date, the Company has identified and systematically mapped over 800 showings throughout the 87 square kilometre San Albino-Murra Property - including over 170 quartz vein structures, 112 tunnels, 148 mine dumps and 354 exploration pits.
In February, Golden Reign announced that it has nearly doubled its land position from 87 square kilometres (8,700 hectares) to 138 square kilometres (13,771 hectares) with the acquisition of the El Jicaro Concession. A comprehensive mapping and prospecting program is now underway.
To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/GRR0507map.pdf
Exploration Highlights
Golden Reign is aggressively exploring and advancing the Property. Since commencing work on the Property in November 2009, the Company has:
-- outlined and is now drilling off a maiden resource at the San Albino
Mine area, which covers approximately 2 square kilometres in the
Southern District
-- confirmed the existence of high-grade mineralization by drilling,
trenching and sampling, including multi-ounce gold and silver material
-- discovered and drilled new targets in the highly prospective Las
Conchitas area, the best drill intercept returning 3.0 metres of 62.96
g/t gold and 61.7 g/t silver
-- conducted a major trenching program, exceeding an aggregate 1,500 metres
in length across 43 trenches, and exposed numerous drill ready near-
surface highly mineralized zones bearing quartz veins ranging from 1 to
8 metres in true thickness
2012/2013 Exploration Programs
Drilling continues at the San Albino Mine area, as the Company nears completion of an intensive drilling program begun in April 2011. This definition drill program is designed to extend the mineralized area outlined by the Company's very successful 2010 drill program, refine the geological model and obtain sufficient data to calculate a NI 43-101 compliant mineral resource.
Golden Reign plans to drill a number of advanced targets located within the Corona de Oro Gold Belt, including high priority targets located in the San Pablo and Las Conchitas areas of the Southern District which were identified during the 2011 trenching program.
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 within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and 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 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.
Contacts:
Golden Reign Resources Ltd.
Kim Evans, CGA
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)
www.goldenreign.com
