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January 19, 2010
NEWS RELEASE - #10-03
TSX- V: GRR
SAN PABLO ASSAY RESULTS
Golden Reign Resources Ltd. (the “Company” or “Golden Reign”)(TSX-V: GRR) is pleased to announce
results obtained during the 2009 first phase exploration program at the San Pablo area of its San AlbinoMurra Gold Property (the “Property”), Nicaragua.
The area sampled at San Pablo comprises part of the Las Conchitas-San Pablo mineralized structural zone,
which stretches 1.5 kilometres from Las Conchitas in the south to San Pablo in the north-east.
Regional geological mapping outlined a large intrusive body situated to the west of the Property; however,
the presence of intrusive bodies within the Property boundaries was not previously reported. The discovery
of several intrusive (granodiorite, diorite, porphyry, granite) float within the floodplain of the Jicaro River
factored into the Company’s decision to map and sample the San Pablo area.
During the initial exploration program, several indigenous surface workings were discovered. The
Company proceeded to pan coarse gold out of these indigenous pits. It also mapped several felsic dykes of
quartz diorite composition at San Pablo, thus far the only location within the San Albino District known to
host such dykes. Additionally, Golden Reign has identified zones of intensively silicified rocks flooded by
quartz and mineralized metasediments (schists and phyllites) containing visible gold.
Mineralization is predominately controlled by 600 trending structures, producing veins up to eight metres
true width. Sheeted veins, containing native gold, arsenopyrite, pyrite, galena and scorodite, form large
mineralized stockwork zones of roughly 50x50 metres across. These stockwork zones are situated where
the veins are intersected by 3100 structures. Veins that were mapped and sampled on surface were highly
mineralized, returning elevated gold values on assay.
The more significant sampling results are tabulated below:
Table 1 – San Pablo, Sample Results
Gold
Location
Sample #
(g/t)
San Pablo
AR10954
27.18
Including
AR10953
52.49
San Pablo
AR10952
3.73
San Pablo
989711
1.72
San Pablo
AR10951
2.80
San Pablo
AR10942
19.89
Silver
(g/t)
5.3
6.5
3.4
2.5
4.6
27.8
Rock Type
Quartz vein
Quartz vein
Quartz vein
Graphite schist
Quartz vein
Quartz vein
Sample
Type
Chip
Chip
Float
Chip
Chip
Float
Sample
Size (m)
4.0
2.0
Grab
5.0
1.2
Grab
Golden Reign’s sampling results in the San Pablo area support the results obtained by the previous operator,
Condor Resources Plc, which ranged from 0.01 g/t gold to 120.20 g/t gold. Condor’s more significant
results are presented below:
Table 2 – Condor, Sample Results
Gold (g/t)
Location
San Pablo
San Pablo
San Pablo
San Pablo
San Pablo
San Pablo
San Pablo
San Pablo
Sample #
210059
A0038
83319
83342
A0041
701
83319
A0039
73.00
25.68
3.59
120.20
8.01
12.78
3.59
3.36
Silver
(g/t)
25.2
26.7
3.6
89
11.4
5.8
3.6
4.4
Rock Type
Quartz Float
Graphite schist
Quartz Vein
Quartz float
Quartz float
Quartz float
Quartz Vein
Graphite Schist
Sample
Type
Float
Float
Channel
Float
Channel
Float
Channel
Float
Sample
Size (m)
Grab
Grab
1.0
Grab
1.0
Grab
1.0
Grab
The geological field notes for the San Albino District comment on the presence of visible gold in both the
quartz veins and surrounding graphitic schists. Historically, indigenous miners mined the schist and
recovered gold by simple mechanical panning techniques. Taking this background information into account,
the Company decided to assay all of the samples using a screen analysis to identify metallic gold. Each 250
gram sample was sieved to minus 150 mesh, the coarse fraction was weighed and tested by fire assay
techniques. The minus 150 mesh fraction was also fire assayed. The two sets of assays were then
combined according to relative weights and a final gold assay was produced. This technique resulted in
significantly improved gold grades. However, several of the schist samples reported anomalous gold values
which may be attributable to a nugget effect. The Company will likely alter its sampling and handling
techniques, utilizing 500 gram samples, to counteract this nugget effect.
Golden Reign continues to evaluate the results from the 2009 program. Assay results from the ArrasLorenzo and the San Albino-Jobo areas will be released shortly.
Please click here for a map of the of the San Albino-Murra Concession
(http://www.goldenreignresources.com/i/front/CONCESSION-1_Revised_web.jpg)
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.
The trading blackout period, initiated on December 22, 2009, for all insiders, management and consultants
of the Company prior to release of all assay results from its Nicaraguan project remains in effect. The
blackout period will continue until 24 hours after the results are publicly disseminated.
On behalf of the Board,
“Kim Evans”
Kim Evans, CGA
Director & CFO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in
the business of exploring and developing precious metals and mineral assets in Nicaragua.
The 2009 first phase program focused on the southern San Albino District which covers approximately 24
square kilometers of the 87 square kilometre property. Within the San Albino District there are two
mineralized structural zones: San Albino-Jobo-Arras-Lorenzo in the north; and Las Conchitas-San Pablo in
the south.
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.
The San Albino-Murra Property is held by a private Nicaraguan company, Nicoz Resources S.A. (“Nicoz”),
under a 25 year mining license expiring February 3, 2027 and covers an area of 8,700 hectares (87 sq km).
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.
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 forwardlooking 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this news release.