Nov 2 2010
Golden Reign Resources Ltd. (TSX VENTURE:GRR) has reported the latest assay results from its San Albino-Murra Gold Property, Nicaragua.
Drill hole SA10-06 encountered multiple gold zones located within the San Albino Mine area.
Highlights of drill hole SA10-06, over true width intervals, include:
- 3.1 metres of 22.40 g/t gold and 23.13 g/t silver
- 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
- 1.0 metre of 17.05 g/t gold
- 1.0 metre of 9.22 g/t gold
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.
The 2010 drill program has confirmed the San Albino Mine area has excellent potential to host a significant gold deposit. Hole SA10-06 greatly expanded the size potential of such a deposit. All four gold zones remain open along strike and at depth.
The San Albino gold zone, which hosts the historic San Albino Mine that was built in the early 1920's, has returned consistently strong near-surface gold results upon drilling. Drill hole SA10-06 recorded 3.1 metres averaging 22.40 g/t gold. Drill holes SA10-02, SA10-03 and SA10-01 returned 2.0 metres of 29.32 g/t gold, 2.13 metres of 10.75 g/t gold and 4.0 metres of 7.35 g/t gold, respectively (see news release dated October 20, 2010). These results correlate strongly with historical sampling (1919 and 1935) of the 200, 300 and 400 levels of the San Albino Mine which returned excellent grades of gold over significant widths.
The San Albino gold zone has also been extended to depth by up to 50 metres from level 400, giving credence to historical projections for the development of new levels, 500 and 600, at San Albino Mine.
In December 1930, Charles Butters, one of the foremost mining engineers of his time and the former owner and developer of the San Albino Mine which recorded daily average production of 10 tons at 31 g/t gold, in written correspondence reflected upon the potential of the San Albino Mine area:
"I enclose two blueprints showing tonnage of ore blocked out. The Mr. Newberry referred to is the well known Mining Engineer who examined this property for a Canadian Company some eight years ago. The blocks of ore that Newberry passed on and his test assays numbering several hundred are in the office here. There is a great uniformity of values in the San Albino Mine, which is the only one out of twelve veins that we have started serious development on. Block 201, 301, 401, 501, and 601 represent an increased thickness of the ore body, and those who have seen this chute, which is a part of the ore chute about 400 to 600 feet long, say that there is a possibility that this chute will go down until it hits granite, which is several thousand feet away. These veins lie in schist more or less parallel to each other and are about 1000 feet apart. Mr. Newberry estimates 2000 feet of ore chutes in those veins. We have ore in both faces in the ore chute in the San Albino vein."
Butters' twelve veins do not include the three newly discovered zones identified by drill hole SA10-06. All three new zones lie in the previously unexplored area between two vein structures identified by Butters - the San Albino zone and Arras/San Lorenzo zone – which are situated approximately 450 metres apart. Based upon earlier exploration work which traced and sampled the surface exposure of Zone 3, returning up to 108.63 g/t gold and 92.0 g/t silver, Company geologists theorized that there was a very strong possibility of finding additional mineralized zones in this inter-lying area.
Drill hole SA10-06, drilled deep to test for additional mineralized structures, was extended only approximately 150 metres into the inter-lying area between the San Albino and Arras/San Lorenzo zones and resulted in the discovery of three new zones. Approximately 300 metres remains to be tested.
Geological studies of the area have determined that the San Albino mineralized area lies within a broad northeast trending mineralized shear zone, hosted by a system of 240/60 degree quartz veins. The mineralization consists of significant amounts of galena, arsenopyrite and sphalerite, associated with graphitic schists and intensively crenulated gneiss.
Drill hole SA10-05 was designed to test the San Albino structure to depth; however, the hole intersected a sub-vertical fault which spread the mineralization over three metres. Although the hole did not intersect one large, well mineralized vein, the assays returned elevated gold values within faulted rocks at the projected depth, thus confirming that mineralization continues to depth.
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.
Source: Golden Reign Resources, Ltd.