Golden Reign Trenching Extends Mineralization South Of San Albino Gold Deposit In Las Conchitas And At El Golfo, Returning 2.0 Metres of 139.44 g/t Au and 115.0 g/t Silver and 1.5 Metres Of 17.00 g/t Au and 9.7 Silver
October 19, 2016
Golden Reign Resources Ltd. (TSX-V: GRR)(the “Company” or “Golden Reign”) is pleased to report results from the most recent trenching program conducted on its El Jicaro Concession (the “Concession”) and in the Las Conchitas area of the San Albino-Murra Property (the “Property”), both located in Nueva Segovia, Nicaragua. The El Jicaro Concession is adjacent to and south of the Company’s flagship San Albino-Murra Property which hosts the pre-development phase San Albino Gold Deposit.
The El Jicaro Concession encompasses the southwest extension of mineralized structures found on the San Albino-Murra Property (see attached map). These structures were partially mined by the Spaniards in the late 1700’s and then by larger scale operations until 1915. The most significant of these workings is the historical El Golfo mine, which has a similar size footprint to the San Albino Gold Deposit and is located 4 km to the south.
The El Golfo mineralization is on strike with and very similar to that of Las Conchitas – located 1 kilometre to the north. Dubbed the “Golden Mile”, the Las Conchitas-El Golfo mineralization has a strike length of at least 2,500 metres and is the longest high-grade, near-surface quartz vein structures defined on the Company’s landholdings to date. Currently, there are eight main gold-bearing structures outlined at Las Conchitas, ranging from 0.3 to 2.5 kilometres in length. El Golfo represents the southwest extension of at least five of these mineralized zones.
Both El Golfo and Las Conchitas contain strongly mineralized vein structures with similar grades and thicknesses, representing potential open-pittable targets. All zones are open down dip and in both directions along strike, and only limited by the extent of trenching and drilling completed to date.
All of the mineralization, from the San Albino Gold Deposit through Las Conchitas to El Golfo, is similar in grade and structure, representing an 8 square kilometre gold camp (see attached San Albino-El Golfo Projected Long Section). Only a 3.5 square kilometre area of interest, covering solely the San Albino Gold Deposit, is subject to the US$15 million gold streaming arrangement with Marlin Gold Mining Ltd. (see news release dated July 11, 2014).
El Golfo Trenching (El Jicaro Concession)
In late 2015, Golden Reign initiated a trenching program at the historical El Golfo mine area, consisting of 7 hand-dug trenches totaling 133 metres and 5 exploration pits across 43 metres.
Highlights from the trenching program include:
- 1.5 metres of 17.00 g/t Au and 9.7 g/t Ag (vertical)
- 1.5 metres of 14.50 g/t Au and 10.6 g/t Ag (vertical)
- 1.0 metre of 19.00 g/t Au and 11.1 g/t Ag (down dip)
- 1.0 metre of 17.00 g/t Au and 9.6 g/t Ag (down dip)
This initial trenching program was design to test geochemical anomalies identified by a 2013 soil sampling program, as well as numerous historical workings (pits and tunnels). The program followed the extensions of several strong soil geochemical anomalies outlined in the southern, Las Conchitas, portion of San Albino-Mura Property. A total of 386 soil samples were collected on 21 lines across El Golfo.
In total, four linear geochemical anomalous trends, oriented in a northeast-southwest direction, were outlined. Two of these trends appear to be a continuation of the Las Conchitas (1km north) gold geochemical anomalies – which have already been tested and confirmed by both trenching and drilling. The other two anomalies exceed 1,000 metres in length, with peak gold values of up to 7,392.7 ppb (7.39 g/t Au) and 577.8 ppb (0.58 g/t Au).
The Company also mapped and sampled several of the historical workings. Grab samples above a 1.0 g/t gold cut-off grade are as follows:
- 145.50 g/t Au and 85.7 g/t Ag
- 79.50 g/t Au and 54.5 g/t Ag
- 51.80 g/t Au and 35.3 g/t Ag
- 51.50 g/t Au and 30.6 g/t Ag
- 5.99 g/t Au and 4.1 g/t Ag
- 1.86 g/t Au and 2.7 g/t Ag
- 1.42 g/t Au and 5.2 g/t Ag
Significant results from the 2015 trenching and underground sampling program are presented in Table 1 below.
Las Conchitas Trenching Program (San Albino-Murra Property)
Approximately 1.5 kilometres south of the San Albino Gold Deposit, an initial trenching program conducted in 2012/2013 outlined 4 parallel NE/SW trending mineralized zones ranging from 500 to 1,500 metres in length – all of which offer potential for the development of open-pittable resources.
A number of the other trenching targets were identified by a 2013 soil geochemical testing program. Golden Reign considers two targets – Rosibel and Portillo – to be high priority.
A follow-up trenching program extended the high-grade, near-surface gold mineralization (known as the ‘Golden Mile’) southwest to El Golfo, increasing the strike length of the mineralized area to 2,500 metres, from 1,500 metres. Trenching and mapping highlights include:
- 2.0 metres of 139.44 g/t Au and 115.0 g/t Ag (Rosibel trench sample)
- 1.0 metre of 31.14 g/t Au and 318.0 g/t Ag (Portillo trench sample)
- 19.10 g/t Au and 3.5 g/t Ag (a selection of grab samples, averaged, from a mine dump located between Rosibel and Portillo)
Golden Reign believes that a mineralized trend links Portillo with Rosibel and extends to Las Conchitas in the NE and El Golfo in the SW. Additional prospecting, trenching and mapping of the historical workings is required.
Originally discovered during the soil geochemical program when a sample of outcrop returned values of 18.3 g/t Au and 40.1 g/t Ag, the Rosibel vein is situated 125 metres SW of Las Conchitas trench #18 and demonstrates the strike continuity of the veins.
A highly mineralized, shallow-dipping quartz vein approximately 1.5 metres thick was exposed in a pit. The vein contains galena, arsenopyrite and visible gold.
The exposure of the vein was mapped and channel sampled along its strike and dip to confirm continuity of mineralization. Highlights from sampling are:
- 1.5 metres of 29.30 g/t Au and 44.7 g/t Ag (vertical)
- 2.0 metres of 46.61 g/t Au and 56.5 g/t Ag (along strike)
- 2.0 metres of 139.44 g/t Au and 115.0 g/t Ag (down dip)
The vein is hosted by moderately to strongly oxidized schists. Systematic sampling of the schists confirms that gold mineralization is not restricted solely to the mineralized quartz veins but is also disseminated within highly oxidized schists containing abundant quartz fragments. This significant observation indicates the potential to increase the thickness of the mineralized zone, allowing for increased open-pittable resources. The best results from samples collected in the schists are as follows:
- 1.5 metres of 11.15 g/t Au and 45.0 g/t Ag (down dip)
- 1.5 metres of 14.44 g/t Au and 18.2 g/t Ag (down dip)
This correlates well with the sampling of Las Conchitas trench #18, which returned the following values (see news release September 17, 2012):
Trench 18: 3.5 metres averaging 6.91 g/t gold and 16.3 g/t silver (vein and schist)
including 1.5 metres averaging 12.69 g/t gold and 32.3 g/t silver (vein)
On strike with Rosibel, located 65 metres to the SW and believed to be part of the same system as both Rosibel and Las Conchitas trench #18, is the historic Bayacun mine. Limited underground production occurred at Bayacun until the early 1900’s, with the extracted material being transported to the nearby El Golfo mill for processing.
An additional historical underground mine, El Limon, is located 300 metres NW of the Bayacun mine and possibly represents the down-dip extension of the same mineralized structure. Sampling of the mine dump located near the Bayacun tunnel returned 34.90 g/t gold and 42.4 g/t silver (see news release March 21, 2012).
Prospecting south-west along the northern border of the El Jicaro Concession and on strike with the Las Conchitas mineralization led to the discovery of mineralized quartz vein boulders near the Portillo prospect. These boulders, ranging from 5 centimetres to 1.5 metres in width and traceable for approximately 200 metres, represent the SW extension of the Las Conchitas mineralized system. The results of samples collected are presented below:
|Sample #||Description||Au (g/t)||Ag (g/)t|
|139602||Quartz boulders, oxidized, 5x10cm wide, collected over an area of 5 square metres||157.20||30.4|
|139603||Quartz boulders, with sulphides collected 5 metres from a fault||9.22||11.4|
|139604||Massive, milky quartz material, boulders vary from 5cm to 30cm in diameter||26.41||15.2|
Following the mineralized boulder train, the Company exposed a highly mineralized vein in trench SA13-TR23. The best results are presented below:
- 1.0 metre of 31.14 g/t Au and 318.0 g/t Ag (vertical)
- 1.5 metres of 23.65 g/t Au and 58.2 g/t Ag (along strike)
Tables 2 & 3 below summarize assay results from the sampling program at Las Conchitas.
Las Conchitas – Drilling
Drilling in 2011 confirmed trenching results (see news release dated February 22, 2012):
Additional drilling, 100 metres to the NW of LC11-01, LC11-02 and LC11-03, also intersected two parallel structures, confirming the down-dip extension of the vein for at least 400 metres and demonstrating strong continuity of both grade and width.
|Drill Hole #||Structure #1||Structure #2|
|LC11-04||1.5 metres of 9.44 g/t gold and 17.3 g/t silver||1.9 metres of 3.24 g/t gold and 6.0 g/t silver|
|including||0.6 metres of 20.64 g/t gold and 37.0 g/t silver||0.5 metres of 6.05 g/t gold and 14.3 g/t silver|
|LC11-05||5.0 metres of 8.63 g/t gold and 3.5 g/t silver||1.0 metre of 6.49 g/t gold and 4.0 g/t silver|
|including||1.0 metre of 35.70 g/t gold and 2.0 g/t silver|
Golden Reign will continue to evaluate the many prospects on its concessions in order to prioritize further exploration.
The Company followed industry standards in its QA&QC procedures. A certified standard sample, or a blank or a field duplicate sample is inserted every 10 samples before the set of samples are sent to the Laboratory. This procedure is applied to all drill and trench samples.
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. Mr. Kowalchuk is a senior geologist consulting to the Company.
On behalf of the Board,
Kevin Bullock, P.Eng.
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: 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 prime objective is to bring its San Albino Gold Deposit into production quickly and efficiently, building cash flow to further advance a number of its other highly prospective exploration targets.
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.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.