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Golden Reign Resources Ltd. (TSX VENTURE:GRR
- News)
-
As a result of a review by the British Columbia Securities Commission,
we are issuing the following news release to clarify our disclosure.
Golden Reign Resources Ltd. (the "Company" or "Golden
Reign") would like to clarify its disclosure and provide a comprehensive
discussion and analysis of the 2009/2010 exploration results from its 87
square kilometre San Albino-Murra
Gold Property, Nicaragua (the "Property").
Clarification of Corporate Disclosure
The Company does not have a National Instrument 43-101 ("NI
43-101") compliant mineral resource delineated on its Property. The
Company's National Instrument 43-101 technical report (the
"Report") filed on September 25, 2009 includes a historical
resource estimate for the San Albino Mine from 1948 based on data from 1934,
extracted from a report by R. Peale (the "Peale Report"). The British
Columbia Securities Commission ("BCSC") has questioned the
relevance and suitability of this estimate for public disclosure based upon
its age, lack of subsequent access and verification, and subsequent work
conducted on the property. This historical estimate pre-dates and is
non-compliant with NI 43-101. In addition, the Report discloses a potential
resource estimate for the Arras prospect, providing an estimate of potential
quantity and grade, expressed as ranges. The potential mineral resource estimate
was prepared in 2008 by M. Montgomery of Geosure
Geological Consultants of Australia for the prior operator, Condor Resources
Plc. ("Condor"). The disclosure of potential resources is contrary
to section 2.2 and prohibited by section 2.3(1) of NI 43-101, as such the
Report is non-compliant with NI 43-101. The Report and the potential
resources estimates should not be relied upon. The Company retracts all
disclosure pertaining to the potential mineral resources, including those
contained in its September 30, 2009 news release, June 2010 presentation and
other documents on or linked to its website. The Report, filed in conjunction
with the signing of the option agreement on the Property, was based largely
upon historical information available at the time of preparation. The Company
has a current NI 43-101 compliant technical report substantially complete,
based upon its exploration of and results and findings from the Property,
which will be filed shortly.
In recent MD&A filings, the Company states that there exists a
significant potential to outline and increase estimated resources and that
the Property offers a low cost production opportunity. The Report does not
support these disclosures. The Company does not have mineral resources to
increase or to use as the basis for establishing relative production costs.
The Company retracts these comments.
A copy of the Peale Report posted under historical reports on the
Company's website has been removed. The Peale Report is over 60 years old and
contains disclosure of resources, reserves, ore, mineral processing and
economic analysis contrary to NI 43-101. The Company has not verified these
estimates. The Peale Report is out of date and the public should not rely on
the estimates of resources and reserves, conclusions or economic analysis
contained therein.
Corporate presentations from November 2010 and June 2010 posted on the
Company's website were removed. The presentations reported preliminary metallurgical
test recoveries of +92%, which are not supported by the Report. To clarify,
the reported recoveries pertain only to gold and are based upon Condor's
public disclosure and a March 2008 report prepared by SGS Lakefield
Laboratory for Condor. Two samples were tested, SAM002 and SAM005 - each by
one CIL cyanidation test, then repeated to confirm
results. The recoveries were identical in both tests for gold extractions,
with 93% and 92% for SAM002 and SAM005, respectively. Silver recoveries were
81% and 74% for SAM002 and 70% and 71% for SAM005. The material tested was
from trenching and drilling performed by Condor.
A newsletter blog written by Larry Myles (the "Larry Myles
Report") posted to the Company's website under historical reports has
been removed. The Larry Myles Report referenced and contained excerpts from
the Peale Report, including a historical resource estimate, which are
misleading and contrary to section 2.4 of NI 43-101. The 1948 historical
resource estimate, stated as a gross dollar value of USD$42 million based
upon the then USD$21 gold price, is misleading and contrary to NI 43-101
because it does not take into consideration costs and recoveries related to
gold extraction and is not based on mineral resources. The Larry Myles Report
also discusses the grade and dimensions of mineral resources which is not
permitted under section 2.3(1) of NI 43-101. Further, Larry Myles Reports
discloses high grade results in a manner that suggests these grades may be
representative of the average grade of mineralization and discusses
continuity of mineralized structures over significant distances without
discussing the continuity of mineralization or grade. The Larry Myles Report
provides scientific and technical information without naming the qualified
person, as defined by NI 43-101, who prepared or supervised the preparation
of this information, contrary to section 3.1. Mr. Myles is an employee,
providing shareholder communications for the Company. The public should not
rely on the Larry Myles Reports because they contain overly promotional
statements and unsupported opinions that are misleading, contrary to NI
43-101 and are not prepared by a qualified person as defined under NI 43-101.
2009/2010 Exploration Results
Summary
During the period from October 2009 to the end of 2010, the Company
completed reconnaissance level exploration across the entire Property, with a
focus on the southern (San Albino) district and the northern (Murra) district.
In the San Albino District, the Company completed a core drilling
program, totaling 1,514.75 metres, over the San
Albino Mine and Arras prospects. Drilling confirmed the thickness, grade and
continuity of the San Albino Mine mineralization. The program also extended
the mineralization of the San Albino zone along strike and down dip. Nine
diamond drill holes totaling 1,269.21 metres were
drilled at the San Albino Mine area. The entire drill core from each drill
hole was photographed, logged, sawed in half, sampled and assayed. All
samples were assayed for gold (metallic screen methods) and 30 element ICP
analysis, including silver. At the Arras prospect, located approximately 450 metres southeast of the San Albino Mine, three historical
reverse circulation holes were twinned by core drilling. The primary objective
of drilling at the Arras prospect was to compare and contrast the assay
results received from the two methods of drilling and to determine the most
accurate method of evaluating the Property. Additionally, twinning of prior
drill holes may provide or increase confidence placed on historical data and
validate prior work. A total of 5 short drill holes were cored at the Arras
prospect, totaling 244.92 metres. The entire drill
core from each drill hole was photographed, logged, sawed, sampled and
assayed. All samples were assayed for gold (metallic screen methods) and 30
element ICP analysis, including silver.
The Company completed additional work in the San Albino Mine area,
including the excavation of thirteen trenches in order to expose additional
mineralized zones.
A regional sampling program identified several targets which require
extensive surface work and evaluation. Numerous showings and historical mine
workings situated south of the Arras prospect, including San Pablo and Las Conchitas, were examined and sampled in a preliminary
manner during November, 2009 and January, 2010. During the same period,
numerous showings in the Murra District were also
sampled and mapped in a preliminary manner.
In the central district of the Property reconnaissance mapping and
sampling has only recently commenced. Significantly more work is required in
2011 to properly assess and evaluate this area.
Drilling Program
R & R Drilling Corp. ("R&R Drilling") was contracted
for the 2010 diamond drilling program. R & R Drilling employed a Longyear 38 drill rig. Initially, R & R Drilling was
using HQ rods and core barrel (6.3cm core diameter) for holes less than 150 metres deep and NQ rods and core barrel (4.6 cm core
diameter) for deeper holes. Due to the fractured nature of the rock at the
San Albino Mine area and proximity of drilling to the historical underground
workings, difficulties with core recovery were experienced. Recoveries varied
but on average were approximately 50%. As a result, very early in the program
the Company began using HQ-3 triple tube for both short and long holes in
order to improve core recovery of clay and fault gouge. This increased the
average recovery to approximately 70% to 80%.
Access to the drilling areas was by existing roads and trails, which resulted
in minimal environmental impact. All 5x5m drill pads were made by hand using
local labour. At the end of the drilling program,
reclamation of the impacted areas was performed.
Drilling Control
The collar of each drill hole was originally surveyed using a hand
held GPS survey instrument. The direction of each hole was surveyed using a
compass and the inclination of the hole was surveyed using an inclinometer.
After completion of each drill hole was completed the deviations in
the hole, both in direction and dip, were measured using a standard
single-shot clockwork Tropari downhole
survey tool. Downhole surveys for dip and magnetic
azimuth were made at approximately 100 metre
intervals within each of the drill holes.
Core Handling, Logging, Sampling, Quality Control, and Security
Drill core was removed from the core barrel and carefully placed in
marked core boxes. The boxes were marked with the respective drill hole number and box number. After each interval of drill
core was placed in the box, the depth of the hole at that interval was marked
on a wooden core block and placed in the box. The boxes were secured and
transported to the Company's core logging facility in Jicaro.
In Jicaro, under the supervision of the
Company's geologists, the core boxes were placed in consecutive order on
logging tables where they were logged both geologically and geotechnically. The core was measured in each of the
boxes and using the core blocks for control. The beginning depth and end
depth of core in each box was noted on the outside end of the box. Core
intervals were marked at one metre intervals in the
box. Geotechnicians proceeded to calculate the core
recovery, RQD (rock quality description), rock hardness and compressibility.
When the geotechnicians completed their
logging, a geologist proceeded to log the core describing the petrography and
mineralogy and measured the structures evident in the core. Upon completion
of the geological description, the geologist marked the core intervals for
sampling. The total length of core was sampled. In areas where there was no
apparent mineralization, the sample interval was a standard two metres. In areas of vein mineralization, the sample
interval varied according to geology but was seldom more than one metre. The sample interval was marked with a wax pencil
and a numbered sample tag was inserted at the beginning of the interval. This
number, along with the drill hole number and sample
depth were recorded for reference against laboratory results. The core was
then photographed for permanent record.
After the sample intervals were marked and tagged the core box was
transported to the sampling facility where trained technicians, under the
supervision of the geologist, cut the core in half with a rock saw. Half of
the core was removed and placed into plastic sample bags in which the
numbered sample tag had been placed. The sample bags were also marked with
the same unique sample number. The bags were sealed with a zip tie and stored
in a secure place prior to being shipped to the laboratory. The other half of
the core remains in the box for future reference and archival requirements
and is stored in a locked area with restricted assess within the core logging
facility.
San Albino Mine area
The primary objectives of the 2010 drill exploration program were to
(1) confirm and evaluate the size and grade of known mineralized zones within
the San Albino Mine area and (2) test the lateral and down-dip extension of
the San Albino vein mineralization. The historical San Albino Mine area contains
two primary mineralized zones some 450 metres apart
- the San Albino zone and the Arras/San Lorenzo zone.
A fence of nine drill holes was drilled at five sites, approximately
25 to 50 metres apart. Except for drill hole
SA10-01, two holes were drilled from each drill pad; one was angled between
45 to 55 degrees and the other between 70 to 90 degrees.
The gold bearing structures strike northeast-southwest (60 degrees)
and consist of quartz veins containing small amounts of galena, pyrite, sphalerite, arsenopyrite and
native gold. The quartz veins lie within graphite flooded shear zones. The
hanging and footwall sections of the vein consist of mineralized quartz veinlets within the graphite altered fault gouge.
The San Albino vein lies within a large shear zone of phyllites and schists. The
sheared rocks are quite porous and amenable to the emplacement of gold by
mineralizing fluids; thus, mineralization is often found in both the quartz
vein and country rock adjacent to the vein. The Company sampled and assayed
the entire length of each drill hole; however, only mineralized intervals are
reported in this news release.
Historical data from the San Albino Mine was compiled and used to
locate the position and orientation of the San Albino vein. Drill hole SA10-01
was designed to intersect the 400 level of the San Albino Mine in order to
confirm the location of the drift and determine the elevation of the adit. The adit was intersected
at a depth of 29.0 metres, where most of the vein
appears to be mined out; however, significant mineralized intervals were
still intersected (see table below).
Drill holes SA10-02 to SA10-05 each intersected the San Albino vein
and extended the strike length of the known vein to the southwest for an
additional 62 metres, to approximately 200 metres. Drill hole SA10-04 identified a new, parallel
mineralized zone, approximately 86 metres below the
San Albino zone.
Two holes, SA10-06 and SA10-09, were drilled to a depth of
approximately 300 metres to test for additional
mineralized structures situated parallel to the San Albino vein. Drill hole
SA10-06 intersected a total of four highly mineralized gold zones, ending at
284.38 metres within a graphitic schist package
hosting gold mineralization. The San Albino zone was intersected at 48.2 metres. The three new parallel gold zones were
intersected at 128.93 metres, 247.50 metres and 268.00 metres depth,
respectively. Drill hole SA10-08 was stopped short at 43.22 metres depth due to very poor recovery; however, the San
Albino vein (Zone 1) was intersected. Drill hole
SA10-09, drilled from same location as SA10-08, reached a depth of 284.38 metres. It intersected the San Albino zone and a second,
mineralized vein believed to be Zone 2, which was initially located by drill
hole SA10-04.
A cross-section (accompanying this news release) from San Albino drill
hole SA10-06 to the Arras surface showing indicates that the Arras
mineralized zone can be traced 450 metres down dip.
The Arras zone, which has already been traced for 200 metres
along strike, is open in both directions and down dip. The third intersection
in drill hole SA10-06, which returned 4.0 metres of
13.67 g/t gold and 31.41 g/t silver including 0.8 metres
of 42.28 g/t gold and 123.0 g/t silver, and the Arras mineralization are not
only visually similar but also chemically similar in that the silver to gold
ratio is approximately 2:1. Additional drilling is required to conclusively
determine if in fact Zone 3 intersected beneath San Albino Mine is the
down-dip extension of the Arras vein.
Detailed results from the 2010 diamond drill program are presented in
tabular format below.
SA 10-01 (90 degrees) -- 53.3 metres
-------------------------------------------------------------------------
Sample No
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
ZONE 1
-------------------------------------------------------------------------
171437
27.00
29.00
2.0
0.06
177.2
-------------------------------------------------------------------------
171438
29.00
31.00
2.0
7.72
111.5
-------------------------------------------------------------------------
171439
31.00
32.00
1.0
4.91
7.7
-------------------------------------------------------------------------
171440
32.00
33.00
1.0
9.18
5.0
SA 10-02 (130 degrees / 60 degrees) -- 109.71 metres
-------------------------------------------------------------------------
Sample No
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
171481
54.00
55.00
1.0
4.00
9.6
-------------------------------------------------------------------------
171482
55.00
56.00
1.0
54.64
24.7
-------------------------------------------------------------------------
171484
56.00
57.00
1.0
0.97
1.6
-------------------------------------------------------------------------
SA 10-03 (130 degrees / 45 degrees) -- 58.84 metres
-------------------------------------------------------------------------
Sample No From
(m) To
(m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
171554
45.12
45.73
0.61
20.42
16.9
-------------------------------------------------------------------------
171555
45.73
47.25
1.52
6.87
17.8
-------------------------------------------------------------------------
SA 10-04 (130 degrees / 45 degrees) -- 146.91 metres
-------------------------------------------------------------------------
Sample No
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
171601
46.40
47.60
1.20
0.86
2.2
-------------------------------------------------------------------------
171602
47.60
48.25
0.65
7.65
8.3
-------------------------------------------------------------------------
171603
48.25
49.00
0.75
0.21
1.0
-------------------------------------------------------------------------
171686
134.10
135.25
1.15
2.40 4.1
-------------------------------------------------------------------------
SA10-05 (130 degrees / 80 degrees) -- 79.25 metres
-------------------------------------------------------------------------
Sample No
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
171733
42.00
43.00
1.00
1.80
1.8
171737
44.00
45.00
1.00
2.30
2.4
-------------------------------------------------------------------------
SA10-06 (130 degrees / 55 degrees) -- 284.38 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
ZONE 1
-------------------------------------------------------------------------
171808
48.20
48.70
0.50
24.00
40.6
-------------------------------------------------------------------------
171809
48.70
49.20
0.50 0.52
2.1
-------------------------------------------------------------------------
171810
49.20
49.55
0.35
3.60
3.6
-------------------------------------------------------------------------
171811 49.55
50.25
0.70
29.06
26.0
-------------------------------------------------------------------------
171813
50.25
50.60
0.35
61.95
32.2
-------------------------------------------------------------------------
171814
50.60
51.30
0.70
19.84
27.4
-------------------------------------------------------------------------
ZONE 2
-------------------------------------------------------------------------
171893
128.93
129.93
1.00
17.05
11.7
-------------------------------------------------------------------------
ZONE 3
-------------------------------------------------------------------------
172973
247.50
248.50
1.00
9.04
7.7
-------------------------------------------------------------------------
172974
248.50
249.70
1.20
2.94
3.7
-------------------------------------------------------------------------
172975
249.70
250.10
0.40
40.66
58.8
-------------------------------------------------------------------------
172977
250.10
250.50
0.40
43.89
187.2
-------------------------------------------------------------------------
172978
250.50
251.50
1.00
8.30
15.1
-------------------------------------------------------------------------
ZONE 4
-------------------------------------------------------------------------
171997
268.00 269.00
1.00
9.22
5.2
-------------------------------------------------------------------------
SA10-07 (130 degrees / 80 degrees) -- 219.46 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
171920
25.80
26.45
0.65
8.39
12.4
-------------------------------------------------------------------------
171921
26.45
28.00
1.55
2.95
5.9
-------------------------------------------------------------------------
SA10-08 (130 degrees /55 degrees) -- 43.28 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
172065
39.62
40.12
0.50
0.96
4.9
-------------------------------------------------------------------------
172067
40.12
41.48
1.36
7.91
8.9
-------------------------------------------------------------------------
SA10-09 (150 degrees / 55 degrees) -- 284.38 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
ZONE 1
-------------------------------------------------------------------------
172086
38.90 39.30
0.40
8.21
34.7
-------------------------------------------------------------------------
172087
39.30
41.30
2.00
39.30
21.0
-------------------------------------------------------------------------
172088
41.30
42.23
0.93
9.50
6.1
-------------------------------------------------------------------------
172089
42.23
42.73
0.50
9.92
12.1
-------------------------------------------------------------------------
ZONE 2
-------------------------------------------------------------------------
172155
115.00
116.00
1.00 3.73
3.6
-------------------------------------------------------------------------
Drill Hole Location Map can be reviewed at the end of the news
release.
Arras Prospect
The mineralized structure in the Arras area, situated approximately
450 metres southeast of the San Albino Mine, is believed to structurally lie underneath the San
Albino mineralization.
Drilling by the previous operator, Condor Resources Plc, outlined
high-grade, near surface mineralized structures some 200 metres
long and open along strike in both directions, with excellent gold
intercepts. This drilling was done mainly by Reverse-Circulation (RC)
drilling.
The Company evaluated the previous RC results by twinning three of the
earlier holes with core drilling. In vein type gold deposits, core drilling
has greater accuracy in determining both grades and widths of the zones. Core
drilling also provides useful geological information on the structural
controls to the mineralization, which RC drilling cannot provide. RC provides
larger intervals but there exists a high risk of cross-contamination if the
drilling process is not done correctly. Because the drilling method, core
recovery, sample sizes and sampling intervals are inevitably different, there
cannot be a one-to-one comparison between the assay results of the two
drilling methods. Despite this, core drilling has confirmed the existence of
the mineralized zones and provided more accurate grades and widths of the
zones.
The 2010 drill program at Arras has confirmed high-grade, near surface
mineralization. The silver to gold ratio is roughly 2.5:1 at Arras, as
compared to the 1:1 silver to gold ratio received from drilling at the San
Albino Mine area.
A total of five diamond drill holes were completed at the Arras
prospect. Drill holes AR10-01, AR10-03, AR10-04 and AR10-05 all intersected
the Arras zone mineralization. Drill hole AR10-02 was collared in the same
location as AR10-01; however, due to drilling difficulties encountered the
hole was terminated before it reached the mineralized zone.
Only mineralized intervals intersected at the Arras prospect are
presented below:
AR10-01 (130 degrees /90 degrees) -- 85.50 metres
-------------------------------------------------------------------------
Sample No. From
(m) To
(m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
172298
80.77
81.40
0.63
2.58
8.9
-------------------------------------------------------------------------
172299
81.40
82.10
0.70
0.09
2.7
-------------------------------------------------------------------------
172300
82.10
83.25
1.15
31.51
83.6
-------------------------------------------------------------------------
172301
83.25
84.00
0.75
1.47
1.4
-------------------------------------------------------------------------
Drill hole AR10-01 twinned Condor's reverse
circulation hole SARC021 which intersected 4.0 metres
of 16.3 g/t gold. The drill hole intersected the Arras mineralized zone at a
depth of 80.77 metres. Core logging and assay
results revealed that the mineralized zone and quartz veining are narrower
than as reported by Condor.
AR10-02 (130 degrees /60 degrees) -- 90.83 metres
Drill hole AR10-02 was collared in the same location as AR10-01;
however, due to drilling difficulties encountered the hole was terminated
before it reached the mineralized zone. There was no quartz veining or
visible mineralization intersected in AR10-02; however, assay results
indicate two separate zones of anomalous gold, silver and zinc values within schists at depths projected by AR10-01.
AR10-03 (130 degrees /90 degrees) -- 21.34 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
ZONE 1
-------------------------------------------------------------------------
172350
0.00
1.52
1.52
0.16
14.8
-------------------------------------------------------------------------
172351
1.52
2.74
1.22
5.90
18.1
-------------------------------------------------------------------------
172352
2.74
4.88
2.14 21.43
47.3
-------------------------------------------------------------------------
ZONE 2
-------------------------------------------------------------------------
172355
7.92
9.14
1.22
8.78
21.1
-------------------------------------------------------------------------
ZONE 3
-------------------------------------------------------------------------
172357
15.85
16.76
0.91
1.22
4.8
-------------------------------------------------------------------------
Drill hole AR10-03 twinned Condor's reverse
circulation hole SARC013 which returned 4 metres of
28.2 g/t gold.
AR10-04 (130 degrees /55 degrees) -- 25.91 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
172361
6.10
7.62
1.52
3.11
32.8
-------------------------------------------------------------------------
172362
7.62
10.67 3.05
10.92
26.6
-------------------------------------------------------------------------
172363
10.67
13.72
3.05
3.11
6.7
-------------------------------------------------------------------------
172364
13.72
16.76
3.04
0.74
5.3
-------------------------------------------------------------------------
Drill hole AR10-04 was design to twin reverse circulation hole SARC05
which returned 4 metres of 17.9 g/t gold. The drill
hole had very poor core recovery. Samples were taken between footage blocks.
AR10-05 (132 degrees /55 degrees ) -- 21.34 metres
-------------------------------------------------------------------------
Sample No.
From (m)
To (m) Length (m) Gold (g/t) Silver (g/t)
-------------------------------------------------------------------------
ZONE 1
-------------------------------------------------------------------------
172365
0.00
1.83
1.83
1.63
11.3
-------------------------------------------------------------------------
172366
1.83
2.44
0.61
0.22
7.1
-------------------------------------------------------------------------
ZONE 2
-------------------------------------------------------------------------
172377
12.20 13.72 1.52
3.61
9.5
-------------------------------------------------------------------------
Drill Hole Location Map can be reviewed at the end of the news
release.
Trenching Program
The Company conducted additional evaluation of the area around San
Albino Mine Area. An examination of old Spanish workings and trenches where
the previous operator sampled high grade gold mineralization was also
completed. Grab samples were taken from these areas to confirm the presence
of gold and silver mineralization. Approximately 200 metres
south east of the San Albino Mine, the trace of the El Naranjo
vein was recognized at the mouth of the El Naranjo
tunnel, old Spanish pits and mine dumps. A trench location map is provided at
the end of the news release.
Old Mill Site
An ore dump located above the old mill site and several old Spanish
workings situated approximately 400 meters north-east of the San Albino Mine
were examined. Five hand trenches were dug over the ore dumps and across the
trace of the 60 degrees structures for a total of 60 metres.
In all, 53 one metre channel samples were collected
from these trenches and sent to the Inspectorate America Corporation
("Inspectorate") preparation facility for gold assay.
Samples with only increased gold values from the old mill site
trenching are presented below:
Sample # Description
Type of Sample Width
(m) Au (g/t) Ag (g/t)
---------------------------------------------------------------------------
171148 Trench
1,vertical at channel 0.60 19.22 18.40
beginning of
trench
---------------------------------------------------------------------------
171147 Trench 1,
bottom, end channel
1.0
7.15
3.50
of trench
---------------------------------------------------------------------------
171149 Trench 1,
vertical at channel
0.60
20.08 17.80
end of trench
---------------------------------------------------------------------------
171171 Trench 2,
vertical at channel
0.68
1.76
5.70
beginning of
trench
---------------------------------------------------------------------------
171167 Trench 2, 8 metres
channel
1.0 0.49 1.40
along bottom of
trench
---------------------------------------------------------------------------
171168 Trench 2, 9
meters channel
1.0
7.10 16.50
along bottom of
trench
---------------------------------------------------------------------------
171169 Trench 2, 10 metres
channel
1.0 15.02 26.3
along bottom
of trench
---------------------------------------------------------------------------
171170 Trench 2, 10.6
metres channel 0.6 10.29 22.30
along bottom
of trench
---------------------------------------------------------------------------
171172 Trench 2,
vertical at channel
0.68
2.60
5.50
end of trench
---------------------------------------------------------------------------
San Albino (Naranjo) Trenching Program
At the San Albino Mine area eight trenches were completed. The
trenches were designed to test the surface trace of the San Albino vein
system, situated on the eastern slope of the San Albino hill. The area of
trenching lies above the El Naranjo high-grade
mineralized vein and is surrounded by historical Spanish surface workings.
The hand dug trenches are spaced approximately 50 metres
apart, averaging 20 metres in length, 1.8 metres in depth and 80 centimetres
in width. A total of 94 channel samples, ranging from one to two metres in length, were collected.
The channel samples are 5 centimetres wide,
cut along the trench wall and oriented perpendicular to the strike of the
vein and/or shear zone. Continuous channel samples were chiseled and
collected in one and two metre intervals for the
entire length of each trench. Sample intervals were selected according to
geologic contacts and visible mineralization, placed into a sample bag, and
shipped to the Inspectorate assay lab for quantitative analysis of select
elements.
Many of the trenches did not reach bedrock and overburden samples were
collected. In four of the trenches the Company intersected significant gold
values representative of the mineralized system. In trench #5, the Company
intersected 3.0 metres of continuous mineralization
averaging 7.11 g/t gold and 15.70 g/t silver.
The most significant assay results from trenching are presented in the
following table:
Table of San Albino (Naranjo) Trench
Results:
Assay
Results
Sample
Sample
Au Ag
Sample # Location Type
Description
(g/t) (g/t)
-------------------------------------------------------------------------
171036 San
Albino- Channel
Bedrock not reached,
3.10 2.50
Trench Sample -
2m
overburden
No SAT1/526-
10
-------------------------------------------------------------------------
171047 San
Albino- Channel
Bedrock not reached,
1.77 2.00
Trench Sample -
2m
overburden
No SAT2/529-
10
-------------------------------------------------------------------------
San Albino- Channel
Quartz vein,
10.79 9.10
Trench Sample -
2m
manganese, and iron
171214 No
SAT4/531-
oxide
10
-------------------------------------------------------------------------
San Albino- Vertical
Schists intruded by 3.15 2.40
Trench
Channel
quartz veinlets,
No SAT4/531- Sample -
contain limonite,
171217 10
1.8m
hematite and
graphite.
-------------------------------------------------------------------------
171226 San
Albino- Channel
Phyllites intruded 2.27 2.70
Trench Sample -
1m
with quartz veinlets
No SAT5/603-
10
-------------------------------------------------------------------------
San Albino- Channel
Phyllites intruded 17.89 43.00
Trench Sample -
1m
by
171227 No
SAT5/603-
quartz veinlets with
10
Fe-oxide,
hematite,
Fe-oxide, hematite,
scorodite
-------------------------------------------------------------------------
171228 San
Albino- Channel
Milky quartz vein 1.18 1.40
Trench Sample -
1m
No SAT5/603-
10
-------------------------------------------------------------------------
San Albino- Channel
Phyllites intruded 1.37 1.40
Trench Sample -
1m
by
171236 No
SAT5/603-
quartz stringers
10
with
hematite
-------------------------------------------------------------------------
Sample Preparation, Analysis and Security
All samples were placed into marked and sealed sample bags, trucked by
the field manager for Nicaragua to Managua where they were then shipped by
DHL courier to Inspectorate's Guatemala laboratory, a preparation facility of
Inspectorate, a certified USA based laboratory. While in Nicaragua, the
samples were under the direct control of the Qualified Person and/or the
Company's field manager.
The samples were crushed to -10 mesh, then split to 500 gram sample
and couriered via DHL to Inspectorate's analytical laboratory in Richmond,
British Columbia, Canada. The 500 gram samples were analyzed for gold using
metallic screen preparation and fire analysis methods and for silver and 30
elements by using Inductively Coupled Plasma Spectroscopy (ICP).
Method of Metallic Gold Analysis by Fire Assay
Due to the coarse nature of gold mineralization, all gold analyses
were completed using 500 gram metallic screen separation and fire assay
analysis. This analytical technique mitigates to a certain extent the nugget
effect of coarse gold. However, the Company recognizes that there is not a
very good duplication of results. A nugget effect problem exists.
Sample prep:
a. Samples
are dried and crushed to -10 mesh, riffle split to 500 grams and
pulverized, the
coarse fraction is then screened out by using a 150 mesh
size screen. The
entire +150 mesh and two and sometimes three portions
of minus fraction
(30 grams each) are assayed separately and a combined
total gold in grams
is calculated based on the weight of both fractions.
Fire assays:
b. Entire
portion of +150 mesh pulp samples and 30 grams of -150 mesh pulp
sample were weighed
into separate fusion pot with chemical fluxes such
as lead oxide, sodium
carbonate, borax, silica flour, baking flour or
potassium nitrate,
after the sample and fluxes had been mixed
thoroughly.
c. The
sample was then charged into a fire assay furnace at 2000 degrees F
for one hour, at
this stage, lead oxide would be reduced to elemental
lead and slowly
sunken down to the bottom of the fusion pot and
collected the gold
and silver along the way.
d. After
one hour of fusion, the sample was taken out and poured into a
conical cast iron
mould. The elemental lead which contained precious
metals would stayed
at the bottom of the mould and any unwanted
materials called
slag would floated on top and removed by hammering, a
"lead
button" is formed.
e. The lead button was then put
back in the furnace onto a preheated cupel
for a second stage
of separation, at 1650 degrees F,
the lead button
became liquefied and
absorbed by the cupel, but gold and silver which
had higher melting
points would stayed on top of the cupel.
f. After
60 minutes of cupellation, the cupel was then taken
out and
cooled, the
concentration of gold in dore bead is determined by
gravimetric method
and/or volumetric method to assure total recovery.
g. Gravimetric determination -
the dore bead is transferred into a
porcelain cup, the
silver content is dissolved in HNO3 acid on hotplate
and removed, the
gold content is annealed, let cooled and then weighed.
h. Volumetric
determination - the dore bead is transferred into a
test tube
and digested with
acids in hot water bath. The gold in solution is
determined by using
Atomic Absorption Spectrometer by comparing with a
set of gold standard
solutions. The total gold value, are calculated
based on results
from both plus and the average of minus portions and
back calculated
based on original sample weight.
Method of 30 element analysis by Aqua Regia
digestion/ICP
a. 0.50
grams of sample is digested with diluted Aqua Regia
solution by
heating in a hot
water bath, at about 95 Celsius for 90 minutes, then
cooled and bulked up
to a fixed volume with de-mineralized water, and
thoroughly mixed.
Digested samples are let settled over night to
separate residue
from solution.
b. The
specific elements are determined using an Inductively Coupled Argon
Plasma
spectrophotometer.
All elements are corrected for inter-element interference. All data
are subsequently stored onto computer diskette.
Quality Assurance and Quality Control
All gold analyses are 500 gram metallic screen assays. While the
laboratory has gold standards for the actual chemical analysis, it is often
difficult to acquire 500 gram coarse commercial standards. This problem was
resolved by using a duplicate sample from every tenth sample tested to
provide a blind copy for analytical control. This treatment assists in
measuring the nugget effect problem associated with this coarse gold type of
mineralization. Subsequent to completion of the 2010 drill program, a source
of a barren rock to be used as blanks in the analytical process has been
located. Now, every tenth sample will be either a duplicate or a blank.
The ICP Spectrometer analysis is first calibrated using three sets of
Certified Standards and a blank. The test samples are then run in batches. A
batch of samples consists of 38 or less. An in-house standard and an acid
blank are placed in front of each set, which are both digested along with the
samples. A known standard with characteristics best matching the samples is
chosen and placed after every fifteenth sample, and again at the end of every
batch. Every 20th sample is re-assayed using a new sample cut, weighed,
digested placed at end of the batch. The results from these know standards
are closely examined to detect any calibration drift.
Legal Survey
A geodetic survey was completed in the mid October, 2010. The
instrument used was a Leica SR20 Single Frequency
Survey Instrument. This instrument is a differential GPS unit which uses a
base station unit to provide millimetre control.
All Property boundary survey points were marked with a labeled concrete
monument and metal pin. Drill hole collars were
surveyed as well. A concrete monument with metal pin also marked the
entrances to the various tunnels on the Property. The data was processed
using Leica Geo Office software. Topographic survey
data has been collected in UTM coordinates using the WGS 84 datum. Control
point was established which will be used in future as a local survey point.
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, CGA, President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR
- News)
mineral exploration company engaged in exploring the San Albino-Murra Property located in Nueva Segovia, Nicaragua. Held
under a 25 year mining license expiring February 3, 2027, the property covers
an area of 8,700 hectares (87 sq km).
The Company has outlined a structural corridor approximately 3 kilometres wide by 15 kilometres
long, which spans the Property, stretching from Las Conchitas
in the south to the northeast mining town of Murra.
Old workings exist along the corridor. The San Albino Mine flanks the
northwestern edge of this structural trend.
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.
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.
To view the maps associated with this press release, please click on
the following link: http://media3.marketwire.com/docs/grr39m.pdf
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Contact:
Kim Evans, CGA
Golden Reign Resources Ltd.
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)
www.goldenreign.com
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