Golden Reign Resources Ltd. Announces Drilling Confirms High Grade Gold Discovery at Las Conchitas
Friday, Feb 24, 2012
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.
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: http://media3.marketwire.com/
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.