The preceding resource estimate open pit and underground sensitivity tables were derived by P&E by applying a series of increasing AuEq cut-offs to the domains that constrain the mineralization. These domains were subsequently used during the application of all cut-off grades within the sensitivity table.
Technical Report Recommendations
P&E recommends that Golden Reign continue to explore the San Albino Deposit and surrounding area with an emphasis on drilling to expand the resource. Gold mineralization at the San Albino Gold Deposit is open on strike and down dip. P&E has extrapolated the known resources estimate mineralization model and indicates that there is considerable potential to increase the size of the deposit.
P&E has identified an Exploration Target beyond the resource estimate (along strike and down dip) with an estimated 3 to 5 million tonnes at a grade between 6 to 10 grams gold equivalent per tonne. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in discovery of a mineral resource.
An exploration program consisting of additional trenching and drilling is proposed at the San Albino Gold Deposit. Six trenches, totalling 300 m, are planned to be excavated along the south slope of the San Albino hill to further delineate the surface exposure of the San Albino vein. A further four trenches, totalling approximately 200 m, are planned to expose and extend the surface exposure of the Arras vein. The first phase of a two-phase exploration drill program, to consist of 19,000 m of step-out drilling and 4,000 m infill drilling, will test the down-dip extension and strike extension of all three veins. Phase two drilling, to consist of approximately 30,000 m of step-out drilling, will seek to delineate the boundaries of the San Albino Deposit.
Metallurgical testwork at the San Albino Deposit is warranted to test recovery on oxidized and primary sulphide mineralization. This would be a requirement prior to undertaking a preliminary economic analysis.
In addition to the exploration at the San Albino Deposit, 500 m of trenching and 4,000 m of drilling (40 holes) is proposed in order to test new exploration targets in the San Pablo-Las Conchitas area, which lies approximately 1.5 kilometres south of the San Albino Gold Deposit.
The Technical Report and Resource Estimate was prepared by P&E in accordance with the Canadian Securities Administrators ("CSA") National Instrument 43-101 and resources have been estimated using the Canadian institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The Mineral Resource estimates in this news release were prepared by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo. of P&E, each an independent qualified person, as defined by NI 43-101. Mr. Puritch has reviewed and approved the contents of this news release.
Golden Reign's Qualified Person
John M. Kowalchuk, P.Geo, a geologist and Company qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release on behalf of the Company.
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.
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.
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.
Golden Reign Resources Ltd.
Kim Evans, CGA
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)
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